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Fixed Asset Accounting 1 0 Purpose 2 0 Policy Virginia Tech's Policies Form
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People also ask
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What is the accounting standard as10?
The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about investment made by an enterprise in its property, plant and equipment and the changes in such investment.
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What is a fixed assets policy?
A fixed asset policy is a system of procedures that address the acquisition, use, control, protection, maintenance and disposal of assets.
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What are the GAAP rules for fixed assets?
Under US GAAP, fixed assets are accounted for using the historical cost method. The historical cost method requires assets to be measured at the cost paid when the asset is acquired as opposed to another measure of valuation such as the fair market value.
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What is the accounting policy in accounting?
Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.
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What is the accounting policy of a fixed asset?
A fixed asset accounting system is a system of policies, procedures, and methods for recording and reporting monetary amounts associated with fixed asset transactions. A fixed asset policy is a system of procedures that address the acquisition, use, control, protection, maintenance and disposal of assets.
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What is the purpose of the fixed asset management policy?
- To ensure value for money in acquiring fixed assets and to maximise residual value in the disposal of fixed assets, where applicable.
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What is the accounting rule for fixed assets?
Under US GAAP, fixed assets are accounted for using the historical cost method. The historical cost method requires assets to be measured at the cost paid when the asset is acquired as opposed to another measure of valuation such as the fair market value.
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