COMMERCE 1BA3 Study Guide - Final Guide: Debenture, Stock Split, Initial Public Offering
5 Dec 2013
School
Department
Course
Professor
Document Summary
Chapter 9: reporting and interpreting property, plant and equipment, natural resources and intangibles. Long-lived assets assets actively used in operations to generate future benefits beyond one year; tangible and intangible: tangible assets resources that have physical substance (definite size, shape); not intended for sale; Pp&e, fixed assets, capital assets, operational assets, chattel. Includes land, amortizable assets (building, equipment etc), natural resources; constructed assets, leased assets, asset retirement obligations. Leased assets operational lease (i/s expense) or capital lease (asset b/s) Asset retirement obligations eg/ mining releases harmful chemicals, have to pay to restore land; record cost when recording asset (gain or loss to account for difference between estimate and reality) Measured at acquisition cost (cash equivalent purchase price plus all reasonable and necessary expenditures made to acquire and prepare asset for use) Buildings purchase price, architectural fees, renovation and repair, permits, legal and realty fees, title fees, excavation and constructed costs.
