COMM 111 Lecture Notes - Lecture 6: Intangible Asset, Financial Statement, Income Statement
Document Summary
Assets acquired for the purpose of providing a future benefits. Other names: capital assets, non-current assets, long-lived assets, long-term assets. Expected useful life is more than one year. Buildings, equipment, land, land improvements, leaseholds, vehicles. Patents, copyright, trademarks, goodwill, computer software, customer lists, mortgage servicing rights, import quotas, fishing licenses, customer or supplier relationships, customer loyalty, market share, marketing rights statement of financial position. Record purchase at cost on the statement of financial position. To (cid:498)capitalize(cid:499) a purchase means to record it as an asset on the. To (cid:498)expense(cid:499) a purchase means to record it as an expense on the. Assets carrying amount = cost accumulated depreciation/amortization income statement. The cost of an asset is the sum of all the costs to bring the asset to its location and intended use. We record the cost on the statement of financial position. Interest on borrowing costs up to completion date. Purchase price, legal, taxes, costs to ready building for use.
