Accounting for Fixed Assets and Depreciation


This chapter will help the readers to:

  • Differentiate between operating expenses and capital expenditure.
  • Indentify tangible assets and intangible assets.
  • Understand the principles involved in ascertaining the cost of acquired assets and selfgenerated assets.
  • Appreciate the treatment of expenditure on improvement, repair and maintenance.
  • Understand the concept of depreciation, depletion and amortization.
  • Apply different methods for calculating depreciation.
  • Understand the accounting of sale, exchange and discarding of fixed assets.
  • Understand the impact of change in method of depreciation and impairment of assets on the financial statements of a company.
  • Identify the issues ...

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