OK. I read through this reading twice and still can’t fully understand, I guess it’s due to my non-accounting background. Can someone explain to me when you adjust items, where to record them? For example concept checkers NO1-5. LIFO reserve: ADD to inventory / ADD to equity PV of operating Lease: ADD to Net PPE / ADD to LTD good will: REDUCE intangible asset / REDUCE equity increase in fair value of LTD: ADD to LTD / REDUCE equity Why for increase in fair value of LTD add to LTD and reduce equity while other adjustment add to both or reduce both?
to preserve a = l+e
Gosh this one reminds me. thanks.