COMM-1107EL Chapter Notes - Chapter 7: Asset, Write-Off, Impaired Asset

• School: Laurentian
• Department: Commerce and Administration
• Course: COMM-1107EL
• Professor: Kayla Levesque

Document Summary

Tangible long-lived assets are also called pp&e (ex. buildings, land, and airplanes: the cost of these assets must be expensed over their useful lives, and the expense associated with this is called depreciation. The exception is land, which is not depreciated: to find out what is included in this category, you need to read the notes that accompany the financial statements. Measure and account for the cost of property, plant, and equipment. The cost of any asset is the sum of all the costs incurred to bring the asset to its location and intended use. Its purchase price: real estate commission, survey fees, legal fees, any back-property taxes that the purchaser pays, expenditures for grading/clearing the land and demolishing/removing unwanted buildings. Anything that lasts forever can go into this account. When an existing building is purchased, the cost includes: purchase price, brokerage commission, sales and other taxes paid, all expenditures to repair and renovate the building for its intended purchase.