MGCR 211 Lecture Notes - Lecture 18: Income Statement, Impaired Asset, Asset Turnover
9 Feb 2018
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Chapter 9 - reporting and analyzing long-lived assets (8/11/16) Property, plant, and equipment: long-lived resources that a company controls, is tangible, and are not intended for sale, used for production and sale of goods/services to customers, provides benefits over many years. Land improvements: structural additions made to the land (eg. driveways, sidewalks, fences, etc, declines in service potential overtime and requires maintenance and replacement, thus recorded separately from land. Equipment: cost includes purchase price and all costs necessary to get equipment ready for its intended uses. Basket : assets purchased in a group/ basket/lump sum amount, identification of cost for each asset is required, total cost is divided among assets according to relative market values. ,520,000: full disclosure principle - each important asset should be recorded separately, assets with different depreciation rates should be recorded separately (eg. if land is part of the basket, but however it doesn"t depreciate) Straight- line cost - residual value asset"s useful life.
