MGAB02H3 Chapter Notes - Chapter 10: Intangible Asset
10 May 2018
School
Department
Course
Professor
Reporting and Interpreting Property, Plant, & Equipment; Natural Resources; & Intangibles
Pages 424 - 491
Long-Lived Assets: Tangible or intangible resources owned by a business and used in its operations to produce benefits over
several years
Tangible assets: Have physical substance 1.
Land A.
Buildings, fixtures, & equipment B.
Biological assets C.
Natural resources D.
Intangible assets: have property ownership rights but not physical substance 2.
Acquisition Cost: The net cash-equivalent amount paid or to be paid for the asset
FOR CASH
FOR DEBT
Operating Lease: Does not transfer substantially a; the risks and rewards of ownership from the lessor to the Lease
Finance Lease: Transfers substantially all the risks and rewards of ownership from the lessor to the lessee
FOR EQUITY
Capitalized Interest: Represents interest on borrowed funds directly attribute to construction until the asset is ready for its
Document Summary
Intangible assets: have property ownership rights but not physical substance. Reporting and interpreting property, plant, & equipment; natural resources; & intangibles. Long-lived assets: tangible or intangible resources owned by a business and used in its operations to produce benefits over several years. Acquisition cost: the net cash-equivalent amount paid or to be paid for the asset. Operating lease: does not transfer substantially a; the risks and rewards of ownership from the lessor to the lease. Finance lease: transfers substantially all the risks and rewards of ownership from the lessor to the lessee. Capitalized interest: represents interest on borrowed funds directly attribute to construction until the asset is ready for its. Basket purchase: an acquisition of two or more assets in a single transactions for a single lump sum. Ordinary repairs and maintenance: expenditures for normal operating upkeep of long-lived assets. Revenue expenditure: maintain the productive capacity of the asset during the current accounting period only and are recorded as expense.
