MGT220H5 Chapter Notes - Chapter 10: Capital Asset, European Cooperation In Science And Technology, Income Statement
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Defi(cid:374)itio(cid:374) & recog(cid:374)itio(cid:374); cost ele(cid:373)e(cid:374)ts, measu(cid:396)e(cid:373)e(cid:374)t of cost; measu(cid:396)e(cid:373)e(cid:374)t afte(cid:396) Definition & recognition of property, plant & equipment. Property, plant & equipment (pp&e) include long-term resources such as office, factory, and warehouse buildings; investment property; equipment (machinery, furniture, tools); and mineral resource properties. Pp&e is also commonly referred to as tangible capital assets, plant assets, or fixed assets. Pp&e are assets that have the following characteristics: held for use in the production of goods/services, for rental to others or for administrative purposes. Not intended for sale in the ordinary course of business: used over more than one period and are usually depreciated over many years, they"re tangible. These assets have a physical existence or substance. Fine line between capital assets & supply inventory. The general approach is to include any items that have multiple uses and are regularly used and replaced within the accounting period as inventory.
