Business Administration 2257 Chapter Notes - Chapter 9: Intangible Asset, Canadian Intellectual Property Office, Canada Revenue Agency
13 Oct 2016
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Document Summary
Chapter 9: reporting and analyzing long lived assets. Property, plant, and equipment are long lived resources that a company controls. These are tangible and are not intended for sale to customers. They are used for the production and sale of goods or services to customers, for rental to others, or for administrative purposes. Costs that benefit only the current period are expensed: such costs are called operating expenditures, required to maintain an asset in its normal operating condition, e. g. painting a building or replacing tires on a truck. Property, plant, and equipment are often subdivided into four classes: land, land improvements, buildings, equipment. All costs related to the purchase of land, including closing costs such as survey, title search, and legal fees are added into the land account. If additional work is required to prepare the land for its intended use, such as clearing, draining, grading, and filling, these costs are also recorded as capital expenditures in the land account.
