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FIXED ASSET MANAGEMENT AT BAJAJ ELECTRICALS LTD KANNEBOINA
In the usual course of business, assets are not retained with the idea of resale; rather, they are held with the intention of being used continuously to produce or provide goods or services. Things like land, buildings, machinery, cars, furniture, and fixtures are examples. To accurately assess the company's financial health and profitability, it is necessary to value its fixed assets. Many years of service are anticipated from fixed assets. Whether due to use, the passage of time, or some other factor, the value of these assets declines over time. Depreciation allows for the reduction of fixed assets when they are used up and their value is turned into cash. Since depreciation is a component of overall production costs, accurate income calculation requires accurate depreciation measurement. The records are kept in order with the going concern element of the business unit in mind when financial transactions are documented. According to the going concern analysis, a company can keep making money as long as it has a realistic expectation of being in business forever. Much of the rationale for methodically depreciating fixed assets from their original cost rather than their present realizable value is based on this premise.
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