MATCHING ISSUES RELATED TO: PREPARATION, PHYSICAL FACILITIES,

LAND, INTAGIBLE ASSETS, AND NATURAL RESOURCES.

A. Preparation
The problem of measuring and valuing inventory at the end of the period can be stated as
follows:
1. Determination of the cost of goods sold to be matched with sales so that the
company's profit can be determined.
2. Determination of inventory value as an element of the company's current assets.
Determination of inventory value is very important to assess the liquidity of the
company's operations.
B. Physical facilities
A unique problem related to the absorption of the benefits of physical facilities is the
determination of the estimated capacity under certain conditions and the pattern of
absorption of the benefits until it can be said that the benefits are completed
C. Land
The issue regarding whether land needs to be depreciated or not, this depends on the
characteristics or functions of the land in the company's operations.
D. Intangible assets
The problem related to this is that in certain cases it is possible to absorb the cost in a
shorter time than its legal life. The direct write-off of all costs as a loss must be carried
out immediately if conditions indicate that the intangible asset no longer has economic
significance.
E. Natural Resources
The cost of natural resources (excluding residual land value) must be absorbed
systematically into production on the basis of extraction or consumption. This absorbed
cost is called depletion. Like depreciation, depletion as a cost or effort to generate income
must be determined objectively and rationally without regard to its effect on net income.