ACCTG300 Lecture Notes - Lecture 9: Book Value, Westjet, Matching Principle
Document Summary
Chapter 9 - reporting and analyzing long-lived assets ignore impairments on page 569 - 470 cost model vs. revaluation on page 470 - 471. Pp&e because they provide bene ts over many years, you put them in pp&e instead of just expensing them. In addition, its usefulness and revenue producing ability generally remain intact, or increase. Land improvements the cost of structural additions made to the land - e. g. paving, fencing these usually decline in service potential over time recorded separately from land depreciated over useful life. Equipment costs include: purchase price provincial sales tax - if applicable freight charges and insurance during transit if paid by the purchaser assembling installing and testing. Relative market valuation get someone to give you a fair value market assessment need to put land into own class because it is not depreciating building has different life than equipment usually.