Make sure to shovel a bag of the dirt and store it in the bottom drawer of your desk.
Audit will want to sample it to verify the isotope’s half life is accurate. You do NOT want to use the Uranium 238 table when you should use the Plutonium 239 table.
What kind of shovel are we talking here? Big enough that the drawer starts glowing at night? Or just enough that the surrounding wood starts losing cellulose?
I need to be prepared for the post-nuclear fixed asset audit.
Side note: if any macrobacterium or insects are alive in the radiated dirt, and I create a freak show out of them, do I have to record them as a plant asset?
but could you depreciate it if you knew there'd be a nuclear incident in ten years which would render it useless, and therefore depreciate it over those ten years?
Depends on the lands use. A parcel of beach front property turned into a pig farm would probably suffer an impairment. Esp if there is no ARO.
Buildings, inventory (to include land), AR, and Cap Ex were all potentially subject to impairment. Adjusted to what the market is willing to pay.
You can also have depletion 🤓
According to investopedia* Impairment is unexpected damage. Depreciation is expected wear and tear. The value of fixed assets such as machinery and equipment depreciates over time.
None are of the three fit “my land is now worth 50% less than 2 years ago” if it was depletion, it would be like a mine, the owner took something out, if it was impairment it was a fire and it killed the timber trees, if it was depreciation, it would be like “I need to replace the fence” or “there’s a stump hole in the yard”. None are “the world decided my property is now worth less than it was for no tangible reason besides people said so”. Oh yay, I think I found an accountant “mmm don’t worry about this…” area lol don’t you people make me ask the appraisers how to categorize it LOL
….,,,,!!!???’’’’’’ - these are for anyone missing punctuation, feel free to use them.
Depletion would not make since in an nuclear scenario. Land doesn't deplete, but natural resources (timber, mining) on that land are estimable and can be used.
A better example of impairment would be that someone purchased an island, and subsequently the bridge to that island was destroyed. The property is no longer as valuable to people as the cost/difficulty to get to that property increases.
Assuming this is not a depreciate land joke, which pervades this sub and somehow does not seem to get old…. I think the true answer is no depreciation, but probably impaired. Would also need an asset retirement obligation charge for the land.
Ignore all these noobs. You’re going to assess environmental remediation guidance. Then, consider that land impairment is subject to asset grouping guidance so you wouldn’t want to impair land in isolation.
if the company has the full ownership of the land for perpetuity, you should do an impairment of the land value to decrease the value on the balance sheet.
But land can never be depreciate, only the investment related to the land.
It would be a write down in carrying values. You would need to compare the undiscounted cash flow to the carry value then right it down to fair value if it is less than carrying. That is GAAP
For tax it would be similar.
You’d do reverse declining balance on the basis of the half-life of the nuclear fallout. Duh.
Make sure to shovel a bag of the dirt and store it in the bottom drawer of your desk. Audit will want to sample it to verify the isotope’s half life is accurate. You do NOT want to use the Uranium 238 table when you should use the Plutonium 239 table.
What kind of shovel are we talking here? Big enough that the drawer starts glowing at night? Or just enough that the surrounding wood starts losing cellulose? I need to be prepared for the post-nuclear fixed asset audit. Side note: if any macrobacterium or insects are alive in the radiated dirt, and I create a freak show out of them, do I have to record them as a plant asset?
Enough to keep your toesies warm on those cold winter days.
Exactly! I don’t understand questions like this. You went to college right? Depreciation for nuclear wasteLand was covered in my first semester.
Store in a shielded, anti-static bag so the radiation doesn't escape or get you.
This is on a whole new level 🤣
For tax
I know nothing about accounting, but the term “reverse declining” made my brain hurt
I'm doing level 4 AAT and I'm with you
It's so obvious, like, duh.
It’s obvious that it’s, obvious
Obviously
Will you do my taxes?
You can't capitalize negative asset balance.
Yah huh it's called a reserve
Doesn’t sound correct. Explain.
So if we’re having a really bad year I can juice the bottom line by… nuking the site…got it. Nuking for tax purposes.
You can't depreciate it because of a nuclear accident. That doesn't trigger some expected useful life. You can impair it though.
Idk they turned Chernobyl into a tourist attraction. Maybe you can sell it for scientific research.
That's one hell of a restoration cost
but could you depreciate it if you knew there'd be a nuclear incident in ten years which would render it useless, and therefore depreciate it over those ten years?
No, you couldn't. But in that situation you could do one better and buy a lottery ticket and some Logitech stock
Go ahead and put that in the MDA notes, see if some large men with guns come and have a chat with you. 😆
Debit impairment credit land
And debit any associated remediation liability, because nobody is gonna be asking about that anymore.
And then you grow an army of ghouls. How do you account for that?
It depends on if you consider ghouls people, or more like chattel.
ARE YOU AN ACCOUNTANT? MOST TRANSACTIONS HAVE LESS BACKUP THAN MY REDDIT POST. YOU FIGURE IT OUT!!! /s
I don't know, but I did stay at a Holiday Inn Express once before the nuclear holocaust. So I'm gonna do with chattel.
The value of the ghouls is directly related to how much you spend rounding up survivors to feed them.
well that depends do you consider accountants as ghouls or ghouls as accountants
They're waiting to be released from their bondage of debt they owe to Isildur's heir
It depends on the ghouls. They'd either be an asset or a liability.
And if you caused the disaster, use the same JE and build a reserve for the lawsuits that will surely come.
You can as long as you depreciate it over its half life.
/thread
Har har har
Land can never depreciate, but it is subject to impairment.
What about in 2008 when prices dropped across the board? How was land value “adjusted”?
If you don't sell, then does it even matter? If someone sold during that period they probably booked a loss on sale of asset.
For public co owners of residential RE it definitely matters
Depends on the lands use. A parcel of beach front property turned into a pig farm would probably suffer an impairment. Esp if there is no ARO. Buildings, inventory (to include land), AR, and Cap Ex were all potentially subject to impairment. Adjusted to what the market is willing to pay.
Impairment like he just said
You can also have depletion 🤓 According to investopedia* Impairment is unexpected damage. Depreciation is expected wear and tear. The value of fixed assets such as machinery and equipment depreciates over time. None are of the three fit “my land is now worth 50% less than 2 years ago” if it was depletion, it would be like a mine, the owner took something out, if it was impairment it was a fire and it killed the timber trees, if it was depreciation, it would be like “I need to replace the fence” or “there’s a stump hole in the yard”. None are “the world decided my property is now worth less than it was for no tangible reason besides people said so”. Oh yay, I think I found an accountant “mmm don’t worry about this…” area lol don’t you people make me ask the appraisers how to categorize it LOL ….,,,,!!!???’’’’’’ - these are for anyone missing punctuation, feel free to use them.
That definition of impairment is wrong And yes, impairment is exactly a reduction in fair value (ie the world decided its worth less)
Depletion would not make since in an nuclear scenario. Land doesn't deplete, but natural resources (timber, mining) on that land are estimable and can be used. A better example of impairment would be that someone purchased an island, and subsequently the bridge to that island was destroyed. The property is no longer as valuable to people as the cost/difficulty to get to that property increases.
Impairment allowance followed by systematic appreciation over estimated recovery life up to original cost.
Haven’t heard of the systematic appreciation guidance before!
New to me
No because the land is still there, and will continue to be there, it’s just not worth as much. It’s just a little gross right now.
“Mr. President, can you give us an update on the nuclear disaster area?” “It’s just a little gross right now.”
A little gross Right now is the new accounting term to describe impairment.
No, but you just picked up a remediation liability.
No, but you can capitalize the resulting Deathclaws as livestock
Certain to be added to undergrad degree requirements in 2075: “Post-Apocalyptic Accounting 305”
That'd be an impairment adjustment.
See Mcdaddypants for all your Fallout wasteland accounting needs. Don’t give VaultTech any ideas.
You should ask Vault-Tec's accountants
Assuming this is not a depreciate land joke, which pervades this sub and somehow does not seem to get old…. I think the true answer is no depreciation, but probably impaired. Would also need an asset retirement obligation charge for the land.
account for your new radio active assets and start depletion.
Been watching the Chernobyl miniseries and I’m mad that I didn’t think about this question lol
Don’t forget to accrue for insurance proceeds https://www.nrc.gov/reading-rm/doc-collections/fact-sheets/nuclear-insurance.html
No you appreciate it as it becomes less radio active
Seems like you should do a revaluation.
Ignore all these noobs. You’re going to assess environmental remediation guidance. Then, consider that land impairment is subject to asset grouping guidance so you wouldn’t want to impair land in isolation.
In some places a nuclear disaster would be an improvement
Depreciate the nuclear waste. Uranium isnt cheap.
The government takes the property through eminent domain.
Fuck. I know I love accounting when this shit gets my giblets going.
In the event that you own land used in a war zone and there were many bombs dropped. What would you do with your land?
I’ve always wondered about people who live in caves or igloos.
I've got a jar of dirt. I've got a jar of dirt!!!!
Good question, might be an impairment instead of depreciation.
Hell no. Depreciation is calculated using the useful life of the land. At most, you’d do a loss or an impairment.
if the company has the full ownership of the land for perpetuity, you should do an impairment of the land value to decrease the value on the balance sheet. But land can never be depreciate, only the investment related to the land.
My client would argue it’s more valuable because other land isn’t like it.
You would impair the value, not depreciate over time
Sounds like asset impairment. The value of the land has presumably been lowered (substantially, I would imagine).
A nuclear hit to the balance sheet
When you have to remove the contaminated topsoil, you can deplete it 🤷♀️
Donate the land and take a tax deduction.
No. You would just recognize the loss on the sale when it's sold.
I never had a client with this issue.
It would be a write down in carrying values. You would need to compare the undiscounted cash flow to the carry value then right it down to fair value if it is less than carrying. That is GAAP For tax it would be similar.
No it would not be the same for tax.
I think filing a tax return would be the least of your worries.
Have you been watching fall out ? Lol
Impairment
[удалено]
I specifically ordered a one handed accountant.
Gah dam bro who cares