In accounting we "capitalize" long-lived assets by putting them on the balance sheet and then depreciating...

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Finance

In accounting we "capitalize" long-lived assets by putting themon the balance sheet and then depreciating those assets over time,based on some concept that each year the asset represents lessvalue to the business and that each year a certain amount of thevalue of the asset is used up in the business processes. Foraccountants, it would be much easier just to expense long-livedassets at the time of purchase. Even though it requires more work,what are the benefits (and to whom) of the methods we use foraccounting for long-lived assets?

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As per the rules of accounting and guidelines of Accounting standard board the long lived assets or usually known as fixed assets in a companys balance sheet should be depreciated at a certain rate every year The benefits of such treatment of long lived assets are plenty to both See Answer

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In accounting we "capitalize" long-lived assets by putting themon the balance sheet and then depreciating those assets over time,based on some concept that each year the asset represents lessvalue to the business and that each year a certain amount of thevalue of the asset is used up in the business processes. Foraccountants, it would be much easier just to expense long-livedassets at the time of purchase. Even though it requires more work,what are the benefits (and to whom) of the methods we use foraccounting for long-lived assets?