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When is the reducing balance method more suitable than the straightline method?

in what circumstances is the reducing balance method more appropriate than the straight line method?


How do you adjust straight line amortization of deferred rent when lease is extended?

I am not entirely positive. But I believe you would take the balance of the deferred rent liability at relating to the lease prior to expansion and amortize it over the remaining life of the new lease. If deferred rent liability was 10k as of 10/31/2011 and you extended the lease term for two years ending 12/31/2013 you would calculate the new straightline expense of the lease at time of the extension through the end of the lease term and determine the deffered rent liability as of 12/31/2011. Then add 10K/24 = 417X 2 = 834 to the 12/31/2011 deferred rent balance of the new lease You are debiting the deferred rent liability and crediting expense to decrease the deferred rent liability associated with the old lease.


What is the difference between amortization and impairment?

impairment is the decrease of fair value of an intangible asset where amortisation is periodic (usualy yearly) distribution of cost of an asset over its life. suppose a factory equipment worth 25000 and estimated life is 5 years, we will charge 25000/5=5000 /year on a straightline basis as amortisation. Now suppose with this equpment we can build something which required licencing...suppose the machine is used for making coca cola. To obtain the licence, the cost is 100,000. so the licence is an intangible asset. IAS reqires intangible ASSETS to be revalue atleast a year to see whether the fair value has increased/decreased. If the fair value is decreased from the cost/ carrying amount... we say the asset has impaired. And we record the value by which the asset has been impared. Note, Useful life has nothing to do with impairment. Fair value can be market value at the date of the impairment test.


Related Questions

When was StraightLine HDD created?

StraightLine HDD was created on 1984-01-01.


An object at rest will remain at rest and an object in straightline motion will remain in straightline motion unless acted upon by a n?

Force


What is number one piston on ford straightline 3.8 engine?

what is piston order of 3.8 amc engine


When is the reducing balance method more suitable than the straightline method?

in what circumstances is the reducing balance method more appropriate than the straight line method?


What is a good website to buy snowboard rails like the ones mountains have?

Straightline Rails, Railwerx.com, Jibs for Cribs and Guru aren't bad but they all require a thicker pocket.


Is viper vs zr1 drag winner?

Chevy zr1 is the better of the two in 0-60 run,straightline track. Viper is slower but on tracks where speed is not always better viper wins


What is the mileage between louisville and New York?

New York is a big state. The approx straightline mileage from Louisville, KY and New York, NY is 650 miles. ref: http://www.indo.com/distance/


How do you graph equation x equals 100?

its a straightline. All points y where x is equal to 100. So its a vertical line covering the whole real line in the Y plane through x = 100


Define line graph?

A line chart or line graph is a type of chart which displays information as a series of data points called 'markers' connected by straightline segments. It is a basic type of chart common in many fields.


Where can one find a BMW dealership in Dallas?

There are several car dealers selling BMW cars in Dallas. Two of the most highly rated are the Straightline Automotive Group located at 2727 Northaven Road and Legend Auto located at 10730 Composite Drive.


What is the approximate straight line distance from mtmarcy in the adirondacks to slide mountain in the catskills?

The approximate straight line distance from Mount Marcy in the Adirondacks to Slide Mountain in the Catskills is about 132 miles.


Is the resultant displacement the same as the total distance traveled?

Usually no. Say you need to fly to New York from Chicago. The resultant displacement would be the straightline distance between the two cities. But you fly through Atlanta (Everything seems to go through Atlanta). You would end up flying about twice the total distance between the cities.