AFM101 Chapter Notes - Chapter 9: Intangible Asset, Book Value, Westjet

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM101
• Professor: Duane Kennedy

Document Summary

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. Land, reported on the statement of financial position as a separate item if it has a material value. 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. Creditors and security analysts use this ratio to assess a company"s effectiveness in generating sales from its long-lived assets. A lower or declining rate may indicate that a company is expanding (by acquiring additional productive assets) in anticipation of higher sales in the future.