What is the Difference Between Half-Year and Mid-month Conventions in Depreciation?
Half-year convention and mid-month convention are two methods used in accounting to calculate depreciation of assets. The half-year convention assumes that an asset is placed in service at the...
Assets acquired by donation are recorded at the fair market value of the asset at the date of donation. The fair market value is the amount that the asset would be exchanged for between willing...
When a company acquires multiple assets in a lump sum, it must allocate the lump-sum acquisition price to the individual assets. This is done using the fair market value method. Under the fair...
Capitalization of interest is the process of adding the cost of interest on debt incurred during the construction of an asset to the cost of the asset. This is done because the interest is incurred...
What is the International Accounting Standards Board (IASB)?
In the United States our financial accounting standards are issued by the Financial Accounting Standards Board (FASB). The international business community has its own version called International...
