what are the focus areas in fixed asset accounting ?

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 Fixed asset accounting generally involves the management and tracking of a company's long-term assets, such as property, plant, and equipment (PP&E). The focus areas in fixed asset accounting can include:

  1. Acquisition: This involves recording the cost of acquiring fixed assets, such as purchasing new equipment or land.

  2. Depreciation: This involves calculating the depreciation expense for fixed assets over their useful lives. Depreciation expense is the portion of the asset's cost that is allocated as an expense in each accounting period.

  3. Disposition: This involves recording the sale, retirement, or disposal of fixed assets. The proceeds from the sale of fixed assets are compared to the asset's book value to determine any gains or losses on the disposal.

  4. Maintenance: This involves tracking the maintenance and repair costs of fixed assets. It is important to properly maintain fixed assets to ensure they continue to function as intended and retain their value.

  5. Revaluation: This involves revaluing fixed assets periodically to reflect changes in their fair value. This may be necessary if the market value of an asset has changed significantly since it was originally acquired.

Overall, the focus areas in fixed asset accounting involve ensuring that fixed assets are properly accounted for and managed throughout their useful lives, from acquisition to disposition.


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CMA Bharat Kumar Swami

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