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General Accounting Discussions: Fixed assets at their original cost, less depreciation;the best choice?

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    • CommentAuthorchico
    • CommentTimeJun 12th 2007
     
    Hello!
    Do you consider that showing fixed assets in the balance sheet of limited companies, at their original cost less depreciation, is the best choice?
    What about intagible assets?
    • CommentAuthoradaclarke
    • CommentTimeJun 12th 2007
     
    Hi chico,

    I don't know what you mean by "limited companies" but I do know that for publicly traded companies, the cost principle states that fixed assets are shown on the balance sheet at cost with accumulated depreciation following, so original cost is the only choice. Marketable securities can be adjusted for FMV.

    Intagible assets are shown at cost and amortized(not goodwill).
    Thankful People: chico
    • CommentAuthorchico
    • CommentTimeJun 15th 2007
     
    Hello "adaclarke"!
    As you've probably noticed, I am very new inexperient in accounting since i just started reading about this subject, nevertheless your input was quite helpful by adding some more notions to my reasoning.
    Thanks very much!

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