COMMERCE 1BA3 Lecture Notes - Historical Cost, Intellectual Property, Matching Principle
5 Nov 2013
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Document Summary
Chapter 9: reporting and interpreting property, plant and equipment; natural. Assets that are actively used in operations to generate future benefits beyond one year. Can be classified into tangible and intangible assets. Resources that have physical substance (a definite size and shape); used in the operations of a business and not intended for sale to customers. Also called property, plant and equipment; fixed assets; capital assets; operational assets. Includes land, amortizable assets (building, equipment etc) and natural resources (mineral deposits, timber: land eg/ mining but doesn"t typically depreciate. Except for land, all tangible assets are subject to depreciation or depletion (natural resources) Other long-lived assets: constructed assets, leased assets, asset retirement obligations. Renovation and repair costs and cost of permits (before move-in; if already operational then renovation expense) Excavation and construction costs: acquisition cost equipment. Modification to building necessary to install equipment eg/ supply power, build new room for equipment. Transportation costs: acquisition cost land.
