[Verse 1] Balance sheets divide the world in two Current lives within a year or few Non-current stretches past twelve months ahead Assets, liabilities, equity spread FIFO sells the oldest first in line Weighted average smooths the pricing sign LIFO saves the newest for the end But only US GAAP lets this trend [Chorus] Current, non-current, split the timeline FIFO, weighted, LIFO design Cost or revalue, impair when low NRV adjustments help inventory flow Balance sheets reveal what companies own Every asset class has seeds they've sown [Verse 2] Long-lived assets choose their measurement way Cost model holds historic purchase day Revaluation lifts to current fair Impairment tests when values disappear Components split when parts have different lives Intangibles from purchase or what thrives Internally developed costs expense Acquired assets sit upon the fence [Chorus] Current, non-current, split the timeline FIFO, weighted, LIFO design Cost or revalue, impair when low NRV adjustments help inventory flow Balance sheets reveal what companies own Every asset class has seeds they've sown [Verse 3] Goodwill emerges when the price exceeds Fair value of identifiable deeds Annual testing keeps impairment clean Financial instruments need levels seen Level one has quoted market price Level three needs models built precise Right-of-use appears when leases start Liabilities balance, playing their part [Bridge] Deferred taxes bridge the timing gap Book and tax create this overlap Pension plans show funded status clear Obligations minus assets here Temporary differences create Deferred tax assets that compensate [Outro] Master classification, know each type Balance sheet analysis ripe Current versus non-current guides the way Every figure has its role to play
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