Fixed Asset Accounting
FEATURED ARTICLES
All articles in this category pertain to fixed asset accounting. Fixed asset accounting refers to the act of keeping financial records of your company’s capital assets. A fixed asset is a tangible long-lived item a company plans to use over time to help generate income. Each acquired asset is recorded in the books based on its classification.
These classifications include buildings, equipment, construction-in-progress, furniture and fixtures, leasehold improvements, software and more.
Learn more about fixed asset accounting below.
Recent articles
IRS issues revised audit technique guide for cost segregation analysis
The Internal Revenue Service issued a revised Audit Technique Guide last week to help examining agents evaluate the validity of cost segregation studies submitted by taxpayers to substantiate accelerated depreciation deductions.These far-reaching updates were needed...
Considering Starting a Restaurant? Here’s What You Need to Know
Whether you’re a new owner or considering a second location, expanding within the foodservice industry is an exciting decision, but it also comes with several items to navigate. Below are a few first steps any restaurant owner should think about before opening their...
ARO (Asset Retirement Obligation) Accounting Example for Oil and Gas Production
Asset Retirement Obligations (ARO) are commonly associated with industries such as oil and gas, mining, waste disposal, or nuclear energy. Some examples specific to the oil and gas industry include oil well plugging and abandonment and underground storage tank...
Asset Retirement Obligation (ARO) Accounting Example for Real Estate
An asset retirement obligation (ARO) represents the legal commitment to remove certain improvements or modifications to an asset at the end of the asset’s use. The FASB’s ASC 410 Asset Retirement and Environmental Obligations (ASC 410) discusses accounting for AROs....
Environmental Liabilities Accounting vs. Asset Retirement Obligations under ASC 410-30
When faced with an obligation to restore a long-lived asset or the environment surrounding it to its original condition, the proper accounting treatment is dependent upon whether the obligation is an asset retirement obligation (ARO) or an environmental obligation...
Asset Retirement Obligation (ARO) Accounting under ASC 410 and ASC 842 Explained with Example
Have you ever entered into an operating lease for a building, constructed leasehold improvements, and determined based on the provisions of the lease that you are legally obligated to remove the leasehold improvements at the end of the lease? If so, then you had an...