Accounting in the Philippines

Assets are often categorized as either tangible or intangible. While tangible assets like buildings and machinery are easy to understand, intangible assets are more elusive. In this blog post, we’ll explore intangible assets, why they matter, and how they…

What constitutes the total cost of a fixed asset: Also, assign to a fixed asset the cost of major periodic replacements. For example, an aircraft requires new engines and a building requires a new roof after a certain usage…

Additions to buildings are capitalizable if they increase the service potential of the related building.

Overview Land is generally considered to have an unlimited life and is therefore a non-depreciable asset. Its original cost includes various expenditures related to its acquisition and its preparation for use as intended by the buyer. Here are expenditures…

Overview The cost of a building includes all necessary expenditures to acquire or construct and prepare the building for its intended use. Buildings consist of relatively permanent structures, including all permanently attached fixtures, machinery and other appurtenance that cannot…

Overview A separate account should be set up for land improvements that have limited lives. They should also be depreciated over their estimated useful lives. The capitalizable expenditures of land improvements may include the following: Special Note: Land Improvements…

Overview Leasehold improvements are expenditures for improvements to existing or new leased spaces. These improvements should be capitalized if the cost exceeds $50,000 and the cost is borne by the institution. If the lease contains an option to renew…