BU227 Lecture : Chapter 9 Reporting and Interpreting Property
Document Summary
Chapter 9: reporting and interpreting property, plant, and equipment; natural resources; and. Long-lived (or long-term or capital) assets are tangible or intangible resources owned by a business and used in its operations to produce benefits over several years: not normally sold to generate revenue, can be tangible or intangible. Tangible assets have physical substance: land, reported on the statement of financial position as a separate item if it has a material value. Buildings, fixtures, and equipment, reported as a separate item on the statement of financial position or in the notes: natural resources; mineral deposits such as gold or iron ore, oil wells, reserves, and timber tracts. Intangibles and other nothings. name, logo, slogans, computer software, and landing rights. intellectual property: copyrights, patents, licences, trademarks, software, franchises, and subscription lists. Measures the sales dollars generated by each dollar of fixed assets used. A high rate normally suggests effective management.
