Accounting for investments under U.S. GAAP Personal Statement

Accounting for investments under U.S. GAAP - Personal Statement ExampleInvestments be categorized as either long-term or short -term investments. Current investments be. Other investments that are not current are categorized as long-term investments (Epstein, Nach & Bragg, 2009). The U.S GAAP provides various standards for accounting for investments.The objective of U.S accounting standards that deal with prop plant and equipment is to recommend treatment of prudishty plant and equipment to enable users of financial information have proper details regarding the enterprises investment in property, plant and equipment and changes in such investments. The main issues in accounting for PPE are recognition of the assets, determination of the assets carrying enumerates, the appropriate depreciation charges and impairment losses that are supposed to be acknowledge in relation to these assets (Thornton, 2013).According U.S GAAP, Property plant and equipment include tangible items that are 1) held for the purpose of yield of goods and services, rental to others, or for administrative needs, 2) anticipated to be used for more than one period and, 3) It is potential that the future economic benefits related with the items will flow to the enterprise and 4) the cost of the PPE can be metrical reliably (Thornton, 2013).The cost of an item of PPE is the cash amount or its equivalent, paid in acquiring the asset, usually adjusted for amortization and other allocations after acquisition. If an enterprise recognizes a liability for retirement of an asset obligation, the carrying amount of the long-lived asset should be increased by an amount equivalent to the liability (Thornton, 2013).Routine caution costs should be expensed as they are incurred. Major inspection and repair costs can be expensed as incurred or capitalized and amortized to the subsequent major inspection or repair. Borrowing