Archive / 1.5.7 Components

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PPE components – what if something is consisting of components?

A property, plant and equipment (from hereon “PPE”) item, a tangible asset can consist of components rather than being one unit. Sometimes it can be apparent, however often enough it’s just forgotten. When it comes to PPE items and their components – think useful lives and replacement. If something of something that’s exceeding the threshold […]

Leasing or capitalizing?

There are some people and companies that prefer leasing over owning assets. For the purpose of the argument, we do mean operational lease and not finance lease in here. It’s ownership versus renting. I guess it comes down to priorities. Whether it’s important for you to own the asset and not worry about cash or […]

PPE components – different useful lives

Property, plant and equipment items are always capitalized with setting a few specific considerations to them alongside with the accounting entry itself. Amongst other things the information set includes also something called a useful life. When we’ve already talked about the meaning behind the useful lives and how they’re used, there’s a little bit more […]