Discuss the presentation of long-lived assets in the balance sheet and income statement
FINANCIAL STATEMENT PRESENTATION
This section discusses the presentation of long-lived assets in the balance sheet and income statement.
BALANCE SHEET
The balance sheet separates noncurrent from current assets. Tangible long-lived assets typically appear under the title Property, Plant, and Equipment, among the noncurrent assets. Firms generally disclose the assets' acquisition cost and accumulated depreciation in one of three ways:
1 . All information is displayed on the balance sheet.
2 . Acquisition cost is omitted from the balance sheet.
3 . Acquisition cost and accumulated depreciation are omitted from the balance sheet but are detailed in the notes.
INCOME STATEMENT
Depreciation and amortization expenses appear in the income statement, sometimes disclosed separately, sometimes included in selling and administrative expenses, and sometimes, particularly for manufacturing firms, included as part of cost of goods sold expense. Asset impairment losses sometimes appear on a separate line on the income statement and sometimes are included in selling and administrative expenses. Gains and losses on disposals of property, plant, and equipment and intangible assets appear on the income statement, often in "Other income and expense.".
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