RSM220H1 Chapter Notes - Chapter 10: Financial Statement, Income Statement, Melter
Document Summary
Net direct costs of adjusting the equipment so it will work as intended, and professional fees associated with the acquisition and installation ( + + ,000) The gst is excluded because it is recoverable. The storage cost is not included in the cost of the equipment since it was not a required cost to bring the equipment to the location and to make it operational. Lastly, the borrowing costs of were not incurred to finance the acquisition, construction, or development of a qualifying asset one that requires a substantial period of time to get ready for its intended use. *pv of ,000 @ 10% for 1 year = Note: the two entries could have been combined into one compound entry. In this example, the non-monetary asset exchange has commercial substance and fair values are reliably measurable, therefore the exchange is recorded at the fair value of the asset(s) (the computer) given up.
