Management and Organizational Studies 3360A/B Chapter Notes - Chapter 10: Deferral, Promissory Note, Impaired Asset

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3360A/B
• Professor: Christina Maco

Document Summary

Property, plant, and equipment: accounting model basics- chapter 10. Investment property: recognition principle, the following 2 recognition criteria need to be satisfied for an item to be recognized as pp&e. It is probably that the item"s associated future economic benefits will flow to the entity, and. If both are met, the item is capitalized and recognized as a pp&e asset. Cost elements: the cost of an item of pp&e includes all expenditures needed to acquire the asset and bring it to its location and ready it for use. Includes: trade discounts and rebates, employee costs to acquire or construct the asset, delivery and handling costs, professional fees. Initial operating loss: training costs, reorganization costs, administration costs, cost to open new facility, cost to introduce new product, costs of land. Includes all expenditures to acquire land and ready it for use: costs typically include. Closing costs, such as title to the land, legal fees and recording fees;