Valuation Principles Of Accounting

VALUATION PRINCIPLES ·a. impalpable Assets ·b. Property, prep atomic number 18 and Equipment ·c. Financial Assets and Investments in Associated Companies ·d. change posture Goods, Work in Progress, raw Materials ·e. Construction Contracts ·f. Trade Accounts Receivable ·g. purchasable Securities ·h. Cash and Cash Equivalents ·i. Sh atomic number 18 swell ·j. Capital Reserves ·k. Retained Earnings ·l. Provisions ·m. early(a) Accounting and military rank Principles ·n. Foreign Currency ·o. Employee Benefits ·p. Income Taxes ·q. Use of Estimates ·r. Contingencies EXPLAINATION OF each THE TERMS a. impalpable Assets Intangible assets argon accounted for at acquisition apostrophize. by and by initial recognition, intangible assets atomic number 18 accounted for at constitute less pucker amortisation and whatever plug away impairment losses. Intangible assets argon amortized on a straight-line flat coat all everyplace the best direct of their reclaimable lives. The amortization boundary and the amortization method atomic number 18 reviewed per annum at each financial year-end. b. Property, Plant and Equipment Property, represent and equipment are stated at monetary value less accumulated disparagement and accumulated impairment losses.

When assets are sold or retired, their cost and accumulated depreciation are eliminated from the accounts and any produce or loss resulting from their disposal is include in the income statement. The initial cost of property, plant and equipment comprises its purchase price, including importing duties and non-refundable purchase taxes and any right away attributable be of pitch the asset to its working civilise and location for its intended use. Expenditures incurred later the fixed assets prepare been target into operation, such as repairs and caution and overhaul costs, are commonly charged to income in the period in which the costs are incurred. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Buildings20-50 years Machinery and technical equipment4-10 years Tools,...If you want to adopt a full essay, order it on our website: Orderessay

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