Summary
Chapter 7: Property, Plant, and Equipment Summary
- Course
- Rsm219
- Institution
- University Of Toronto (U Of T )
Chapter 7: Property, Plant, and Equipment Summary
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Chapter 7 Property, Plant. Equipment & Intangible-
asses
Capital Assets
(Long-term assets)
Capital asset are held until no
longer services to the firm
-- Service Potential: asset held until exhausted.
Cap
ital Asset:
⑰
Tangible asset:
(property,
plant
plant
asset
equipment; fixed asses; or
-
Capital assets that can be seen &
physically touched
Used to line.
->
generate revenue over
asset: No form
②
Infaryible physical(can
·
from
company, help
the
Separable be sold the to
company generate
revenue over multiple years
③ Natural Resources
Naturally material with
occuring economic rele
·
④ Goodwill:
Reported separate from assesbusiness.
additional value to the
A taquisition, east is recorded at its cost (cost of asset
capital
us
preparing
& of asset
equisition cost
↳
Capitalized.
As asset is used, of
metching process requires cost aset recorded as
expense.
, Depreciation: For
property, plant & equipment asset
Amortization: For intangible assets
* For natural
epletion: resources
Property, Plant, Equipment
-Land: * Land
bought for future me isn't
part of PP
Land improvements:
Buildings:
·
Equipments:
* Land doesn't depreciate
Cost of PPE
Cost of PPE: expenditure need to
aquire, prepare & we asset.
Expenditure not apart of cost of asset are
expensed immediately.
Capitalized: expenditure included as a
part
of cost of asset.
NM-Cash:
Interest
*
on borrowed funds
is not added to the
normally purchase
of an asset.
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