ACCTG 1 Chapter Notes - Chapter 9: Financial Statement
Document Summary
Chapter 9 - reporting and analyzing long lived assets. Lo 1: determine the cost of property, plant and equipment. Lo 3: identify the basic accounting issues for intangible assets and goodwill. Lo 4: illustrate how long-lived assets are reported in the financial statements. Long-lived resources that: are controlled by the company, are tangible (have physical substance, are used in the operation of a business, are not intended for sale to customers. Determining the cost of property, plant and equipment. Operating expenditures: benefit only the current period, immediately charged as an expense. Capital expenditures: capitalized as an asset (increases the cost of the asset, benefit future periods, increases a company"s investment in productive activity. Cost of land includes: purchase price, closing costs such as title and legal fees, additional costs to prepare land for its intended use (less any proceeds from salvage) Land has an unlimited life, therefore it is not depreciated.
