CFA Level I, Financial Reporting and Analysis, Long-Lived Assets
When talking about the balance sheet, we always need to consider:
- indicial measurement, and
- subsequent measurement.
In regard to recognition, we need to decide on whether or not to capitalize something, i.e. put it into the balance sheet, or not capitalize it, i.e. putting it into the income statement.
Measurement tells us with hoch much of something should be capitalized. Initial measurement is about cost, subsequent measurement needs to take into account the writing down of assets.
Writing down of an asset means that you are acknowledging that it is depreciating (in the case of tangible assets) or amortised (in the case of intangible assets). Depreciation or amortization will allocate the initial cost to the useful life of the asset. In the case of unforeseeable events that lead to a recoverable amount strictly inferior to the book value of an asset, we need to have an impairment.
Die wichtigen Punkte von Financial Reporting and Analysis, and Long-Lived Assets in der folgenden MindMap:
Alle Lambert MindMaps für CFA Level 1 und Level 2 können im Onlineshop unter https://daniel-lambert.de/produkt-kategorie/chartered-financial-analyst/ erworben werden.