Ali Aksas

For example, determining the collectability of accounts receivable involves judgment and assumptions about the creditworthiness of customers. Estimating the useful life of assets or determining the fair value of intangible assets can also be subjective. This subjectivity can lead to variations in financial reporting among companies. To mitigate this issue, companies should establish clear and […]

When an asset is acquired or disposed of throughout an accounting period, partial year depreciation could additionally be necessary. This entails prorating the annual depreciation expense primarily based on the variety of months the asset was in service during that yr. For occasion, if the equipment within the example above was purchased on July 1st,