Long-lived assets are those assets whose economic benefits are expected to be reaped at a future point in time (usually more than one year). Long-lived assets typically include tangible assets like property, plant, and equipment, intangibles like patents, copyrights, etc., financial assets like equity shares, debentures, bonds, etc.
There are certain issues while dealing with the recording and presentation of long-lived assets. They are:
a. cost of assets that need to be recorded and capitalized,
b. allocation of expense over a period of time in form of depreciation, amortization, etc. (except for the assets such as land and intangibles with indefinite lives),
c. treatment of subsequent cost that is incurred,
d. whether to follow cost vs. revaluation model to be followed as per the IFRS,
e. treatment of unexpected declines in the value of assets,
f. classification with respect to intent, and
g. de-recognition of assets.