Background Note | HBS Case Collection | August 2000 (Revised January 2001)

Asset Reporting

by Paul M. Healy and Preeti Choudhary

Abstract

Using historical cost and conservatism to identify and value assets, this case explains the criteria for asset reporting in straightforward situations and then examines scenarios where implementing the criteria for recognition and valuation of assets is conceptually challenging. These more complex situations occur when: 1) Ownership or control of a resource is uncertain; 2) The economic benefits from outlays are uncertain or difficult to quantify; or 3) Resource values have changed.

Keywords: Accounting; Assets; Problems and Challenges; Accounting Industry;

Citation:

Healy, Paul M., and Preeti Choudhary. "Asset Reporting." Harvard Business School Background Note 101-014, August 2000. (Revised January 2001.)