O'Reilly logo

Wiley Not-for-Profit GAAP 2015: Interpretation and Application of Generally Accepted Accounting Principles by Richard F. Larkin, Marie DiTommaso, Warren Ruppel

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

21 LONG-LIVED ASSETS, DEPRECIATION, AND IMPAIRMENT

PERSPECTIVE AND ISSUES

Long-lived assets are those that provide an economic benefit to the organization for a number of future periods. GAAP regarding long-lived assets involves the determination of the appropriate cost at which to record the asset and the appropriate method to be used to allocate that cost over the relevant periods.

These assets are primarily operational assets, and they are broken down into two basic types: tangible and intangible. Tangible assets have physical substance and are categorized as follows:

  1. Depreciable.
  2. Depletable.
  3. Other tangible assets.

Intangible assets have no physical substance. Their value is found in the rights or privileges that they grant to the organization.

Most of the accounting problems involve proper measurement and timing of the transactions. Adequate consideration must be given to the substance of the transaction.

In addition, GAAP provides guidance related to accounting for the impairment ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required