RSM219H1 Lecture Notes - The Purchase Price, Intangible Asset, Capital Asset
19 Dec 2012
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RSM219H1 Full Course Notes
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Document Summary
Chapter 9: reporting and analyzing long-lived assets: property, plant, and equipment and. 1. 1 capital assets are long-lived assets acquired for use the operations of the business and are not intended for sale to customers. They are used in the production in sales of good and services for customers. 1. 2 capital assets may be tangible (with physical substance) or intangible (without physical substance). Intangible assets provide future benefits through special rights and privileges. They include patents, copyrights, goodwill, trademarks, and trade names franchises, licences, r&d (research and development cost). 1. 3 tangible capital assets are often subdivided into two classes: 1. 3. 1. 2 land improvements, such as driveways, parking lots, fencing, landscaping, and underground sprinkler systems. 1. 3. 1. 3 buildings, such as stores, offices, factories, and warehouses. 1. 3. 1. 4 equipment, such as store check-out counters, cash registers, coolers, office furniture, factory machinery, and delivery equipment. 1. 3. 2. 1 natural resources physically lose substance or deplete, as they are used: determining the cost of property, plant, and equipment.
