MGAC01H3 Lecture Notes - Financial Statement, Green Roof, Adamski
6 May 2014
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Topic: property, plant & equipment (e10-19, e10-28, p10-1, p10-2, ic10-2) Learning goals: to determine what costs are recognized in the cost base of an asset, know the measurement of the cost, to know the cost, revaluation and fair value models. Characteristics of property, plant, and equipment: acquired for use and not resale, long term in nature, possess physical substance. Learning goal 1: to determine what costs are included in the cost base of an asset. Costs to purchase & bring asset to new location. The purpose of this exercise is to practice deciding which costs should be capitalized as an asset, and which costs should be expensed: Sunshine supply co. , a newly formed corporation, incurred the following expenditures related to land, buildings and machinery & equipment: Cash paid for land and dilapidated building on it. Removal of old building less salvage (,000 - ,500) Fee for title search charged by engineering co.
