MGT120H5 Chapter Notes - Chapter 6: Impaired Asset, European Cooperation In Science And Technology, Lists Of Transformers Characters

• School: UTM
• Department: Management
• Course: MGT120H5
• Professor: Catherine Seguin

Document Summary

P(cid:396)ope(cid:396)ty, pla(cid:374)t & e(cid:395)uip(cid:373)e(cid:374)t; dep(cid:396)e(cid:272)iatio(cid:374); lo(cid:374)g-lived ta(cid:374)gi(cid:271)le assets; i(cid:374)ta(cid:374)gi(cid:271)le assets. Tangible long-lived assets, also called property, plant & equipment, do not last forever & must be expensed over their useful lives (depreciation). Land is a unique asset, as it"s not expensed over time because its usefulness never decreases! Intangible assets are useful because of the special rights they carry. The related expense account for these is amortization. Intangible assets also includes goodwill, whose related expense account is impairment losses. Measure & account for the cost of tangible assets. Cost of an asset is the sum of all the costs incurred to bring the asset to its location & intended use. The cost of property, plant & equipment includes its purchase price plus taxes, commissions, & other amounts paid to make the asset ready for use. The cost of land includes its purchase price, real estate commission, survey fees, legal fees & back property taxes.