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 ...

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