Assets & Valuation
Inventory Valuation
Why two companies holding the exact same 1,000 sacks of rice in their warehouse can report two different profit numbers — just from how they count the cost of what was sold.
Depreciation Methods
Why the exact same ₹10 crore machine can show a different profit impact every year for a decade, depending on nothing more than which depreciation method a company picked on day one.
Borrowing Costs Capitalisation
Why the interest a company pays on a loan taken to build a new factory doesn't always show up as an 'interest expense' in the P&L — sometimes it quietly becomes part of the factory's cost instead.
Impairment of Property, Plant & Equipment
Why a factory that's still running, still making products, and hasn't broken down at all can suddenly be written down by thousands of crores on a company's balance sheet — with nothing physically wrong with the building or the machines.
Intangible Assets & R&D Capitalisation
Why a pharma company can spend ₹500 crore on a new drug and expense almost all of it immediately — while a software company spending the same amount on a new product can capitalise a meaningful chunk of it as an asset instead.
Investment Property
Why a company that owns an office building it rents out to tenants can choose to show that building's value going UP on its balance sheet every year the property market rises — something it's never allowed to do for the factory next door that it actually uses to run its own business.
Component Accounting for PP&E
Why a single aircraft, sitting on an airline's balance sheet as one asset, might actually be depreciated as four or five completely separate 'assets' internally — each wearing out, and needing replacement, on its own different schedule.
Leasehold Land Accounting
Why the land beneath a company's own factory, which it has used and controlled for decades and will keep using for decades more, might not actually count as land the company 'owns' at all, under strict accounting rules.