AFM123 Lecture Notes - Canada Revenue Agency, Cedar Fair, Capital Cost
9 Apr 2014
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Chapter 9 reporting and interpreting: long-lived tangible and intangible assets. Challenge with long lived assets right amount to invest. Accounting reports provide information to evaluate company"s investment in long lived assets. Assets enable companies to produce and sell goods and services. 3 rd category (supplement) long term assets depleted over time. Acquisition of tangible assets: all reasonable and necessary costs to acquire and prepare an asset for use should be recorded as a cost of the asset. To capitalize is to record a cost as an asset, rather than an expense. Cedar fair paid cash for a roller coaster (,000,000) and related transportation (,000) and installation (,000)costs. Cedar fair signed a note payable for a roller coaster (,000,000), and paid cash for the related transportation (,000) and installation (,000)costs. Two types of maintenance costs can be incurred the future. These costs are: ordinary repairs and maintenance for routine upkeep of long-lived assets. expensed.
