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Accounting: The process of gathering and preparing financial information about a business or other organisation in a form that provides accurate and useful records and enables decisions to be made. Accounting cycle: This covers everything from opening the 'books' at the start of the year to closing them at the end.
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Discover the meaning of bookkeeping terms and accounting definitions - a quick A to Z guide helping you get smart about your business accounts.
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Property, Plant & Equipment (PP&E) are tangible fixed assets held for use in the production or supply of goods or services, for rental to others, or for administrative purposes, and are expected to be utilised during more than one accounting period.
- Introduction
- Cost of Property, Plant and Equipment
- Depreciation of Property, Plant and Equipment
- Disposal of Property, Plant and Equipment
Property, plant and equipment (PPE) are the long-term tangible assets that are shown on the balance sheetof the company. The company recognizes an asset as an item of PPE when the asset has a useful life for more than one year and it is used for production or supply of goods or services, for rental to others, or for administrative purposes. Propert...
The company records an item of property, plant and equipment initially at its cost in the accounting record. It includes all costs that necessary to bring the asset to the working condition that it can be used as intended. The cost of an item of PPE includes purchased price, import duties, and the costs to get assets to the location and condition r...
Depreciation is the process of spreading the cost of assets over its useful life. After the company record the item of PPE in the accounting record, it will need to be depreciated as the time passed (e.g. monthly or yearly, etc.). In this case, depreciation of PPE will need to reflect its useful life and the benefits that the company receives from ...
Disposal of an asset of property, plant and equipment is the process of removing the cost of the asset and its accumulated depreciation from general ledger, by selling or writing off the asset during or at the end of its useful life, so that it is no longer shown on the balance sheet. This is known as the derecognition of PPE. In this case, the com...
open.umn.edu · opentextbooks · textbooksIntroduction to Financial Accounting - Open Textbook Library
Jun 14, 2023 · The text begins by explaining the role of financial accounting in society, and then describes the underlying structure of double entry accounting systems and the process of recording economic events that impact the value of the organization through the journals and the ledger.
The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entity’s investment in its property, plant
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What is property plant & equipment (PP&E) in accounting?
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What happens if a PPE asset is sold over its net book value?
3 days ago · With its authoritative and straightforward definitions and its wide-ranging coverage, this dictionary is essential for students and professionals in accounting and finance. It is also an ideal source of reference for anyone seeking a clear guide to the often-confusing world of accountancy terms.
