Class discussions Assignment Example | Topics and Well Written Essays - 500 words - 4

Class discussions - Assignment Example Whereby, Straight line method, allow property, plant and equipments to be depreciated on a uniform basis. On the other hand, declining balance helps to determine the value of an asset whereby; the present value of depreciation is normally lower that the past values (Financial Accounting Standard Board, para360). On the contrary, unit out method utilizes units of assets as a base value rather than periods that an asset had undergone via depreciation. Therefore, this indicates that accountants utilize different valuation methods to come up with a fair and true value of an asset (Financial Accounting Standard Board, para360). Normally, accountants determine the net realizable values of property, plant and equipment by estimating its future benefits. This means that accountants should use different methodologies and techniques because some assets vary from time to time depending on their nature (Financial Accounting Standard Board, para360). However, accountants should not utilize different methodologies and techniques to prepare misleading information but rather they should use different methodologies and techniques to prepare information that reflects the true value of an asset. Therefore, it is ethically right to use different methodologies and techniques to determine the true value of an asset. On the other hand, it is ethically wrong and contrary to the accounting conventions to prepare information that may mislead users of accounting information (Financial Accounting Standard Board, para360) Intangible assets involve all those assets that do not have a physical existence, such assets include; good will, patents, copyrights, licenses, trademarks franchise to mention just but a few (Financial Accounting Standard Board, para350). According to FASB intangible assets should be valued at their fair value whereby, commercial substance received should be added or subtracted during valuation. Additionally, all intangible assets that were purchased separately should