COMMERCE 1BA3 Lecture Notes - Intangible Asset, Cash Flow Statement, Capital Asset

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 1BA3
• Professor: Aadil Merali Juma

Document Summary

Objective 1: describe the types of tangible and intangible assets a business may own: long-lived assets are assets that are used in the business and not held for sale. Amortization: goodwill, while an intangible asset, is subject to impairment losses rather than amortization or depreciation expense, exhibit 7-1 shows the corresponding expense accounts for the respective long-lived assets. It may help to organize the presentation of the material related to long-lived assets according to the life cycle of a long-lived asset. That is, we will study issues related to acquisition (determining the cost), ownership (capital and revenue expenditures during ownership, depreciation) and disposal. Objective 2: measure and account for the cost of property, plant, and equipment. Instructor"s resource manual for harrison et al. , financial accounting, 5ce: the cost of any asset is the sum of all of the costs incurred to bring the asset to its location and intended use.