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It's not all Current

  • Writer: Trusha Desai
    Trusha Desai
  • Feb 15, 2018
  • 1 min read

Moolah! Copyright Trusha Desai Innovation Management Inc.

The assets on the Balance Sheet of a business are not always current. There are long-term assets which include investments that are owned or held by the company for a period longer than

Art copyright Trusha Desai Innovation Management Inc.

a year. These could be GICs (Guaranteed Investment Certificates), Stocks, Mutual Funds, ETFs (Exchange-Traded Funds) and Bonds.

When we evaluate the long-term assets, we need to bear in mind the risk tolerance of the business owners and related parties. If an interest rate of 0.75% or less on an annual basis seems to be negligible on the surface, it is certainly better than losing one's shirt while betting on a lost cause.

Property, plant and equipment are also examples of long-term assets, though some accountants may prefer to categorize them as fixed assets. It is essential that information of purchase, sale and serial numbers of fixed assets are securely maintained in the accounting software.

Goodwill, patents and copyrights that are intangible assets also fall under long-term assets. These come forcibly into play when succession planning is being done.

For discussion of your financial statements or for bookkeeping, GST, tax and management consulting issues, please contact me #TrushaDesai.com

Trusha Desai Innovation Management Inc.

Trusha Desai aka Trusha Pandit (La femme, શ્રીમતી) 

Founder & CEO

BSMT-7436 Sherbrooke Street, (Unit Basement)

No walk-ins: Please do not disturb neighbours

Vancouver, British Columbia, V5X 4E4 Canada

 

© Trusha Desai Innovation Management Inc. 2024

We live and work on the unceded territory of the xʷməθkʷəy̓əm (Musqueam), Skwxwú7mesh Úxwumixw (Squamish), Tsleil-Waututh Nations, and elsewhere

Trusha Desai is a Certified Professional Bookkeeper
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