Asset Types
- Current (Short Term)
- Non-Current (Long Term)
- Tangible
- Intangible
Property, Plant and Equipment
- land
- real estate
- buildings
- etc
Right-of-Use Assets
- it is not yours yours but you control all the costs (e.g. fire damages) and all the future prospects (e.g. sanitation projects)
- it is basically yours from a usage perspective, just not yours yours from a legal perspective
- (I hope it makes sense)
Impairment
- there is a fire and a machine is damaged or destroyed
- impairment … loss of value, write-off … applying to books
Impairment Fraud
- One can use impairment to mask high profits
- impairing assets which have not actually been impaired
- loosing value in the books, even though value is still present in company