Business Administration 2257 Chapter Notes - Chapter 2: Balance Sheet, Historical Cost, Promissory Note
24 Oct 2017
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Chapter 2: all public companies in canada use ifrs, under ifrs assets are reported at current market value not historical cost. Ifrs lowers cost of doing international business for canadian companies: private companies have the option of following aspe set by acsb. The classified statement of financial position (balance sheet: balance sheet sub categories, assets. Investments: current assets, property, plant, and equipment, goodwill. Inventory: goods held for sale to customers, (finished and unfinished goods: supplies: consumable items e. g. office supplies or cleaning supplies, prepaid expenses: cost of things paid in advance of use. Depreciation is used to calculate estimated useful life and their cost should be reported as cost minus accumulated depreciation (the amount of depreciation over entire life of asset). The difference between cost and accumulated depreciation is called carrying amount or net book value. Intangible assets and goodwill: don"t have physical paid and the fair value of the purchased company"s net substance and represent a privilege or grant.
