This topic is related to longterm assets Go into your enviro

This topic is related to long-term assets. Go into your environment, and select an asset and explain how it would be treated for accounting purposes. Describe the asset, identify where it would be listed on the balance sheet, and determine if it would be depreciated. Discuss the rationale behind your conclusions.

Solution

Long term assets are those which can use for more than 1 accounting period. They are depreciated over its useful life

There are various long term assets such as land, building,plant,machinery etc they are shown under the head fixed assets.

All fixed assets are depreciated except land because its value being appreciated over time.

They can be depreciated over its useful life and suitable depreciated method can be applied by entity.

Example for

Building = straight line method,written down value, double declining method etc

Plant = same as above

Machinery = straight line method written down value, double declining method units of production method, etc