Accounting Discussion Question

Accounting
Tutor: None Selected Time limit: 1 Day

Why are self-constructed assets important?

Jan 23rd, 2015

The critical accounting issue in these instances is identifying the cost of the self-constructed asset. The task is more difficult than for purchased assets because there is no external transaction to establish an exchange price. Actually, two difficulties arise in connection with assigning costs to self-constructed assets: (1) determining the amount of the company's indirect manufacturing costs (overhead) to be allocated to the construction and (2) deciding on the proper treatment of interest incurred during construction.


Jan 23rd, 2015

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Jan 23rd, 2015
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Jan 23rd, 2015
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