ACTG 2011 Lecture Notes - Lecture 2: Contingent Liability, Current Liability, Capital Cost Allowance

• School: York University
• Department: Accounting
• Course: ACTG 2011
• Professor: Laura Simeoni

Document Summary

Oil and trees, grape vines, software and hardware. Can look at initial investments and analyze it based of historical cost. Hard to measure the future value of it. Interest expense (can be added when financing the construction of a building) Value in use - npv of the cash flows generated or saved over its life. Revaluation model - fair value at date of revaluation - any subsequent accumulated depreciation and impairment losses. Fair value can be beneficial now but could effect net income in the future due to depreciation. Intangible assets can measured at market value if there is an active market. Revalue using the gross method or proportional method. Can revalue only on transition to aspe from pre-changeover gaap. Historical cost applied when recording new capital assets. Capital assets > depreciation/amortization > gaap > 10% Capital assets > cca > cra > 30%