Assets and Depreciation

Assets and depreciation pages explain how businesses recognize, measure, carry, and consume assets over time. This section focuses on long-lived assets, intangible-asset allocation, prepaid balances, and the reporting effects of carrying-value changes.

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• Current Assets
• Property, Plant, and Equipment
• Book Value
• Carrying Amount
• Depreciation
• Accumulated Depreciation
• Contra-Asset Account
• Impairment
• Recoverable Amount
• Write-Down
• Write-Off
• Amortization
• Prepaid Expense
• Goodwill

In this section

• Accumulated Depreciation
  Contra-asset balance showing the total depreciation recorded against a depreciable asset since acquisition.
• Amortization
  Systematic allocation of an intangible asset's cost over the periods expected to receive its benefit.
• Book Value
  Accounting value recorded in the books, usually referring either to an asset's net amount or to a business's net assets after liabilities.
• Carrying Amount
  Amount at which an asset or liability is reported on the balance sheet after the relevant accounting adjustments.
• Contra-Asset Account
  Asset-related account with a credit balance that offsets a linked asset without removing the asset's original cost.
• Current Assets
  Assets expected to be collected, sold, or consumed within one year or the normal operating cycle.
• Depreciation
  Systematic allocation of a tangible asset's cost over the periods expected to benefit from its use.
• Goodwill
  Acquisition-related intangible asset representing the excess of purchase price over identifiable net assets in a business combination.
• Impairment
  Reduction of an asset's carrying amount when recorded value is no longer supported by recoverable or expected economic benefit.
• Prepaid Expense
  Advance payment recorded as an asset at first and expensed later as the related benefit is used.
• Property, Plant, and Equipment
  Long-lived tangible operating assets such as land, buildings, machinery, and equipment used across multiple periods.
• Recoverable Amount
  Amount an entity expects to recover from an asset through use or disposal, used to judge whether impairment is required.
• Write-Down
  Partial reduction of an asset's carrying amount when the recorded amount is no longer fully supportable.
• Write-Off
  Removal of a recorded amount from the books when a receivable, asset, or identified balance is no longer expected to provide value.