Accounting treatment of long-term assets on the example of Kraš Plc

The final paper deals with the topic of the accounting treatment of long-term assets on the example of the company Kras Plc. The company's operations need to have long-term and short-term assets, which can be: tangible and intangible, financial, and receivables. Long-term tangible and intangible assets of the company are consumed over time, depreciated or lost in value, and depreciation with a number of other factors significantly affects the presentation of business results of the company as well as the value of company assets. The vertical and horizontal analysis provides insight into the structure and movement of the value of long-term assets. Assets are initially measured at cost, as the amount of cash or cash equivalents payable or at the fair value of other consideration given for the acquisition of the asset at the time of acquisition or construction. It is recognized when it is probable that future economic benefits associated with the acquisition and use of the asset will flow to the Group. Movements in the value of assets depend on write-offs and new acquisitions by individual periods. The analysis of the selected company shows that the share of long-term assets is very high (50,54%) and increases in the observed period and the greatest importance of the activity has long-term tangible assets. The company applies the straight-line method of calculating depreciation, and depreciation participates with 3,43% in total operating expenses.