LONG TERM ASSETSA plant asset is tangible. It is used in the production or sale of other assets. It is also used in the sale of other assets or services. It has a useful life longer than one accounting period.The cost of a plant asset includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use.Intangible assets lack physical existence and they are no financial instruments. In most cases, they provide services over a period of years and normally classified as long-term assets.
Its cost is systematically allocated to expense over its estimated useful life through the process of amortization.
FOOD FOR THOUGHT
Why is the Modified Accelerated Cost Recovery not generally accepted for financial accounting purposes? What accounting field will this method be used?