Accounting for Long-Term Assets — Depreciation, Amortization, Impairment, and ROA Explained | Chapter 7 of Financial Accounting
Accounting for Long-Term Assets — Depreciation, Amortization, Impairment, and ROA Explained | Chapter 7 of Financial Accounting Chapter 7 of Financial Accounting (12th Edition) by Thomas, Tietz, and Harrison explores how businesses account for long-term assets—plant assets, natural resources, and intangibles—that support operations across multiple periods. From capitalizing asset costs to measuring depreciation and impairment, this chapter offers comprehensive coverage of fixed asset accounting under GAAP and IFRS frameworks. 📺 Watch the full podcast-style summary above to learn how companies record, depreciate, and evaluate their long-term assets. Subscribe to Last Minute Lecture for more chapter-based financial accounting breakdowns. 📘 Book Overview The chapter begins with the cost principle —defining asset cost as all expenses necessary to acquire and prepare the asset for use. This includes the purchase price, sales tax, legal fees, transportation, and installation...