In this video, learn how to evaluate long-term assets. This includes how impairment issues can significantly affect their valuation.
- Long-term assets such as buildings and equipment … are reported in the balance sheet at their historical cost. … Well, almost their historical cost. … Technically, these building and equipment assets … are reported at their net cost, net of depreciation. … For example, in its 2018 financial statements, … ExxonMobil reported that it held property, plant, … and equipment with a historical cost of 477 billion dollars. … However, ExxonMobil listed this property, plant, … and equipment in its balance sheet at 247 … billion dollars net. … Net of what? … Depreciation of 230 billion dollars. … Roughly speaking, ExxonMobil had already used up … about half of the long-term service potential … of its existing property, plant, and equipment. … Depreciation is the accountant's rough estimate … of the wear and tear on a long-term asset … that comes about through normal use. … For example, consider the device that you are using … right now to watch or listen to this course. … Will that device last more than one year? …
- Accounting basics
- Reviewing the balance sheet and income statement
- Credits, debits, and journal entries
- Making financial statements
- Issues in financial accounting
- Revenue recognition
- Deferring taxes
- Analyzing financial statements
Skill Level Beginner
Accounting Foundations: Internal Controlswith Jim Stice1h 29m Intermediate
Cost Accounting: Analyzing Product Profitabilitywith Rudolph Rosenberg56m 49s Intermediate
Why financial accounting?1m 13s
1. Accounting Basics
The accounting equation3m 37s
2. The Financial Statement
3. The Mechanics of Accounting
4. Current Issues in Financial Accounting
5. Financial Statement Analysis
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