02 — Capability · BC-210.20
Fixed Assets & Leases
Carry long-lived assets and lease obligations on the books at the right value, from the day they are placed in service to the day they are retired or returned.
- Asset Accounting
- Lease Accounting
In scope
- Capitalization decisions and the asset register
- Depreciation and amortization schedules
- Lease classification and liability measurement
Out of scope
- Physical upkeep and maintenance of the assets (see BC-680)
- Facilities leasing decisions (see BC-370)
Realized by · 3
Used in · 1
Build it · 0
- Nothing in the library points here yet.
Decomposes into · 4
- BC-210.20.10Asset CapitalizationDecide which spend becomes an asset rather than an expense, and record it with the cost, useful life and location that later accounting depends on.
- BC-210.20.20Depreciation & ImpairmentSpread asset cost over its useful life on the chosen method and write it down when the asset is worth less than the books say.
- BC-210.20.30Lease AccountingRecognize lease liabilities and right-of-use assets, keep them current as terms change, and report them under the applicable standard.
- BC-210.20.40Asset Retirement & DisposalRemove assets from the books when sold, scrapped or lost, and record the gain or loss so the register matches what the enterprise still owns.