Reference no: EM131622092

Question: The following questions are unrelated except that they all apply to non-current assets and intangible assets:

1. The manager of Golf Gear often debits the cost of repair or maintenance of equipment to Plant and equipment. Is this a violation of accounting standards and accepted good practice? Why would the manager do that?

2. The manager of Castle Industries often buys plant and equipment and debits the cost to Repairs and maintenance expense. Does this action violates accounting standards and accepted good practice? Why would he do that?

3. Some people suggest that, since many intangible assets have no value except to the business that owns them, e.g. the website, they should be valued at $1.00 or zero on the balance sheet. Many accountants disagree with this view. Which view do you support? Why?