What are measurement bases of different non-current assets

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CEO of Plastic Industries recently came under fire from stockholders regarding lackluster performance. In an interview to a financial newspaper he said that major cash outflows from the company should not be frowned upon as these are not expense rather investments to secure a better future for the company. Moreover recent changes in measurement bases of certain non-current assets have also negatively affected company financial results. He concluded added that employees of the company are the most important asset and soon they would be able to give outstanding results. In the light of the above statement

Question a) Do you think employees can be considered an asset of a company? Give reason for your answer in light of generally accepted accounting principles (GAAP) regarding recognizing assets?

Question b) How do you differentiate whether a cash outflow is an expense or an asset?

Question c) What are measurement bases of different non-current assets?

Reference no: EM132611942

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