International Asset And Current Asset

1759 Words Dec 6th, 2015 8 Pages
3.Difference between non-current asset and current asset
Non-current asset can be named as Fixed-asset as well. While current asset is named as non-fixed asset. Non-current asset generally consist of net property, plant and equipment intangible assets such as goodwill and other asset. (Business Analysis and Valuation: Text and Cases By Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard)For current asset, it is an asset that is likely to be realized in, or is intended for sale or consumption in, entity’s normal operating cycle; it is held primarily for the purposed of being traded; it is expected to be realized within 12 months after the reporting period; it is cash or cash equivalent. Current assets are held with the intention of converting them into cash within the business cycle. Non-current assets are held for continuing use in the business. (Financial & Management Accounting An Introduction by Pauline Weetman P.31)

4. The purpose of GAAP
GAAP is the Generally Accepted Accounting Principle. Generally accepted accounting principles are the conventions, rules and procedures necessary to define accepted accounting practice at a particular time. These principles provide a foundation for measuring and disclosing the results of business transactions and events. They include both conventions, bases and presentation practice.
It also provides a guideline for all the companies to carry out the same principle to demonstrate the financial information. To a certain…
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