by pay@crispino.us | May 12, 2026 | Measurement & Valuation, Terminologies
The estimated selling price of inventory minus costs of completion and selling. Ensures inventory is not overstated. A conservative valuation method.
by pay@crispino.us | Mar 21, 2026 | Measurement & Valuation, Terminologies
The systematic allocation of the cost of tangible assets (e.g., buildings, equipment) over their useful lives. It reflects wear and obsolescence. Depreciation is an expense but does not involve cash outflow.
by pay@crispino.us | Feb 26, 2026 | Measurement & Valuation, Terminologies
Occurs when an asset’s market value drops below its book value. Impairment losses are recognized to reflect reduced economic benefit. Common for goodwill or investments.
by pay@crispino.us | Sep 5, 2025 | Measurement & Valuation, Terminologies
Similar to depreciation but applied to intangible assets like patents, software, or franchise rights. It spreads the cost over the asset’s economic life. Ensures expenses align with benefits.
