This document provides an overview of accounting for property, plant, and equipment. It discusses identifying PP&E and related costs such as land, buildings, equipment, and self-constructed assets. It also covers acquiring and valuing PP&E including historical cost, cash discounts, and exchanges of nonmonetary assets. The document explains accounting for costs subsequent to acquisition, distinguishing between capitalizing costs that increase future benefits versus expensing costs that simply maintain operations. Learning objectives cover PP&E identification and costs, acquisition and valuation issues, and accounting for post-acquisition costs.
This document discusses accounting for property, plant, and equipment. It covers topics such as the initial valuation of PP&E including acquisition costs, costs of self-constructed assets, and accounting for interest costs incurred during construction. The document provides learning objectives for a chapter on acquisition and disposition of PP&E and includes examples and illustrations of accounting for various costs related to PP&E.
Audit of the acquisition and payment cyclesellyhood
This document discusses the audit of the acquisition and payment cycle. It covers testing internal controls, performing substantive tests of transactions, and testing accounts payable. Key parts of the cycle include processing purchase orders and cash disbursements. Analytical procedures and tests of details are used to audit the accounts payable balance. E-commerce has increased electronic linkages between suppliers and customers.
Discuss bankrupcity, reorganization, and liquidationDina Erliana
This document discusses five major issues that must be addressed during financial distress: whether the problem is temporary or permanent, who should bear losses, whether the firm is more valuable operating or liquidated, whether to file for bankruptcy or use informal procedures, and who would control during reorganization. It explains that creditors usually accept rehabilitation plans rather than demand liquidation because they believe they will recover more of what is owed. Liquidating whenever liquidation value exceeds going concern value is not always a sound rule, as a firm's outlook and value may improve. Liquidations usually result in losses for creditors and owners due to reduced asset values and costs associated with liquidation.
This chapter preview discusses cash and receivables. It begins by defining cash as the most liquid asset and examples of cash. It describes how to report cash and related items such as cash equivalents, restricted cash, and bank overdrafts. It then defines receivables as claims against customers and others. It identifies the different types of receivables such as accounts receivable and notes receivable. It discusses accounting issues related to recognition and valuation of accounts receivable and notes receivable. Finally, it outlines the learning objectives of the chapter which include identifying cash items, reporting cash and receivables, and understanding special topics related to receivables.
This document outlines the scope and content for Chapter 5 of an audit course. It covers understanding audit reports, the types of reports including unmodified and modified, and the elements and situations that result in each type of report. It also discusses the auditor's responsibilities, including maintaining professional skepticism and ensuring financial statements are free from material misstatement. The types of audits are defined as external, internal, and compliance audits.
This chapter discusses inventory valuation and classification. It covers the following key points:
1. There are two main types of businesses - merchandising and manufacturing companies. Merchandising companies have one inventory account while manufacturing companies have multiple inventory accounts for raw materials, work in process, and finished goods.
2. There are two main inventory systems - perpetual and periodic. The perpetual system continuously updates inventory balances while the periodic system relies on a physical count at the end of the period.
3. Inventory includes goods owned by the company as well as some goods on consignment or sold with a right of return. Inventory errors can misstate financial statements in the current or subsequent periods depending on the type of
This chapter discusses financial reporting and accounting standards. It identifies the major financial statements and standard-setting bodies like the IASB and FASB. The objective of financial reporting is to provide useful information to capital providers. High-quality standards are necessary and IFRS are global standards used in over 100 countries. Financial reporting faces challenges like different political environments and an expectations gap between what accountants provide and users want.
Kim Fuller needs accounting information like incomes, expenses, assets and liabilities for his new business. This includes a truck, trailers, machines, supplies and a warehouse. He also needs non-accounting info like contracts signed and hiring employees.
To value assets, Fuller adds up individual assets totaling $277,000. Opening owner's equity is $165,000 which is Fuller's and siblings' capital.
To determine profit and loss, Fuller needs expense and income data. Expenses include trade and office costs while incomes include operating and non-operating revenues. He should do analysis quarterly as the business is young.
Fuller must carefully record changes to asset values, liabilities if loans are paid
This document discusses accounting for property, plant, and equipment. It covers topics such as the initial valuation of PP&E including acquisition costs, costs of self-constructed assets, and accounting for interest costs incurred during construction. The document provides learning objectives for a chapter on acquisition and disposition of PP&E and includes examples and illustrations of accounting for various costs related to PP&E.
Audit of the acquisition and payment cyclesellyhood
This document discusses the audit of the acquisition and payment cycle. It covers testing internal controls, performing substantive tests of transactions, and testing accounts payable. Key parts of the cycle include processing purchase orders and cash disbursements. Analytical procedures and tests of details are used to audit the accounts payable balance. E-commerce has increased electronic linkages between suppliers and customers.
Discuss bankrupcity, reorganization, and liquidationDina Erliana
This document discusses five major issues that must be addressed during financial distress: whether the problem is temporary or permanent, who should bear losses, whether the firm is more valuable operating or liquidated, whether to file for bankruptcy or use informal procedures, and who would control during reorganization. It explains that creditors usually accept rehabilitation plans rather than demand liquidation because they believe they will recover more of what is owed. Liquidating whenever liquidation value exceeds going concern value is not always a sound rule, as a firm's outlook and value may improve. Liquidations usually result in losses for creditors and owners due to reduced asset values and costs associated with liquidation.
This chapter preview discusses cash and receivables. It begins by defining cash as the most liquid asset and examples of cash. It describes how to report cash and related items such as cash equivalents, restricted cash, and bank overdrafts. It then defines receivables as claims against customers and others. It identifies the different types of receivables such as accounts receivable and notes receivable. It discusses accounting issues related to recognition and valuation of accounts receivable and notes receivable. Finally, it outlines the learning objectives of the chapter which include identifying cash items, reporting cash and receivables, and understanding special topics related to receivables.
This document outlines the scope and content for Chapter 5 of an audit course. It covers understanding audit reports, the types of reports including unmodified and modified, and the elements and situations that result in each type of report. It also discusses the auditor's responsibilities, including maintaining professional skepticism and ensuring financial statements are free from material misstatement. The types of audits are defined as external, internal, and compliance audits.
This chapter discusses inventory valuation and classification. It covers the following key points:
1. There are two main types of businesses - merchandising and manufacturing companies. Merchandising companies have one inventory account while manufacturing companies have multiple inventory accounts for raw materials, work in process, and finished goods.
2. There are two main inventory systems - perpetual and periodic. The perpetual system continuously updates inventory balances while the periodic system relies on a physical count at the end of the period.
3. Inventory includes goods owned by the company as well as some goods on consignment or sold with a right of return. Inventory errors can misstate financial statements in the current or subsequent periods depending on the type of
This chapter discusses financial reporting and accounting standards. It identifies the major financial statements and standard-setting bodies like the IASB and FASB. The objective of financial reporting is to provide useful information to capital providers. High-quality standards are necessary and IFRS are global standards used in over 100 countries. Financial reporting faces challenges like different political environments and an expectations gap between what accountants provide and users want.
Kim Fuller needs accounting information like incomes, expenses, assets and liabilities for his new business. This includes a truck, trailers, machines, supplies and a warehouse. He also needs non-accounting info like contracts signed and hiring employees.
To value assets, Fuller adds up individual assets totaling $277,000. Opening owner's equity is $165,000 which is Fuller's and siblings' capital.
To determine profit and loss, Fuller needs expense and income data. Expenses include trade and office costs while incomes include operating and non-operating revenues. He should do analysis quarterly as the business is young.
Fuller must carefully record changes to asset values, liabilities if loans are paid
1) The document provides an overview of chapter 1 of the textbook "Financial Accounting" which covers accounting basics. It defines accounting, identifies its users and uses, and explains key concepts like ethics, standards, assumptions and the accounting equation.
2) The accounting equation states that assets must equal liabilities plus equity. It defines the components of the equation as assets being resources owned, liabilities being debts or obligations, and equity being the ownership claim.
3) Business transactions impact the accounting equation by increasing or decreasing at least two elements as a transaction has a dual effect.
Financial accounting Meaning . This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTSBibek Prajapati
Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.
This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTS
Prepare Balance Sheets and Profit & Loss A/c in IFRS formatBUSYforSMEs
An introductory ebook on IFRS covering the following topics:
What if IFRS?
Why do we need it?
What's in it for us?
Comparison between IFRS and GAAP
How can you prepare IFRS compliant Balance Sheets
Acquisition and Disposition of Property, Plant, and Equipmentreskino1
Identify property, plant, and equipment and its related costs.
Discuss the accounting problems associated with interest capitalization.
Explain accounting issues related to acquiring and valuing plant assets.
Describe the accounting treatment for costs subsequent to acquisition.
Describe the accounting treatment for the disposal of property, plant, and equipment.
The document discusses completing the audit process. It covers reviewing for contingent liabilities and commitments, obtaining and evaluating letters from the client's attorneys, conducting a post-balance sheet review for subsequent events, accumulating final evidence including analytical procedures and representation letters, evaluating overall audit results, communicating with the audit committee and management, and addressing the discovery of new information after issuing the audit report.
This document provides an overview of Positive Accounting Theory (PAT). It begins by defining positive and normative theories, and explaining how PAT seeks to explain and predict accounting practices rather than prescribe how accounting should be done. It then discusses the origins and assumptions of PAT, including how it was influenced by agency theory. Key aspects of PAT covered include how it views the firm as a nexus of contracts and the role of accounting in addressing agency problems and reducing agency costs. The document also outlines the major hypotheses of PAT and discusses how accounting can both efficiently reduce costs but also be manipulated opportunistically.
This document summarizes key accounting concepts related to cash, receivables, and related valuation issues. It defines cash and receivables, discusses how to recognize, measure, and present them in financial statements. Specific topics covered include cash controls, restricted cash, cash equivalents, accounts and notes receivable, allowance for doubtful accounts, present value concepts for long-term notes receivable.
Chapter 1: Overview of Financial ManagementMikee Bylss
This document provides an overview of financial management concepts across 4 learning objectives. It defines the roles of finance and accountings, different business organizations like proprietorships and corporations, the importance of ethics, and potential conflicts between managers and stockholders. Careers in finance and capital markets are also introduced.
This document provides an assignment classification table for Chapter 3 of Intermediate Accounting. It classifies the chapter's topics, questions, brief exercises, regular exercises, and problems by topic and learning objective. The table also describes the level of difficulty and estimated time to complete for each assignment. It includes 13 topics covered in the chapter and 10 learning objectives. The document provides guidance for instructors on organizing assignments to help students learn the material.
Master Corporation acquired 80% ownership of Stanley Wood Products on January 1, 20X1 for $160,000. On this date, Stanley's retained earnings were $50,000 and the fair value of the noncontrolling interest was $40,000. During 20X5, Master recorded its share of Stanley's income of $24,000 under the equity method and received $8,000 in dividends. Consolidation entries were made to eliminate the intercompany balances and income, assign beginning differentials, and prepare consolidated financial statements for Master and Stanley as of December 31, 20X5.
The document discusses accounting information systems and transaction cycles. It describes the three transaction cycles - expenditure, conversion, and revenue - and the two subsystems in each cycle involving physical and financial components. It also outlines traditional accounting records used in manual systems and documentation techniques for computer-based systems, including data flow diagrams, entity relationship diagrams, and document flowcharts.
This document provides an overview of financial accounting theory. It discusses what a theory is, different types of accounting theories (positive vs normative), and how theories have developed over time through both inductive and deductive approaches. Early theories were developed inductively by observing accounting practices, while later normative theories prescribed new practices. Positive theories seek to explain and predict practices. The document notes there is no universally accepted accounting theory and different researchers may embrace different paradigms. It also discusses evaluating and criticizing theories.
Accounting Global 9th Edition Horngren Solutions Manualmelofufa
This document contains sample exercises and solutions for recording business transactions in journals and preparing trial balances. It includes multiple journal entries recording various business transactions, as well as trial balances for several sample businesses. The exercises cover key accounting concepts like debits and credits, normal balances of accounts, and preparing and analyzing trial balances.
Lecture 23 expenditure cycle part ii -fixed assets accounting information sy...Habib Ullah Qamar
The document discusses fixed asset systems and their differences from inventory systems. Fixed asset systems process transactions for acquiring, maintaining, and disposing of long-term assets like land, buildings, and equipment. They record asset costs, depreciation, and location. Fixed asset transactions require approval since assets are long-term investments, unlike routine inventory purchases. Additionally, fixed assets are capitalized and depreciated over multiple periods, unlike inventories which are expensed immediately. The document also describes the acquisition, maintenance, and disposal processes in a computerized fixed asset system and the authorization and verification controls used.
The document discusses auditing procedures for trade receivables, trade payables, and inventories. It defines each account and outlines the purpose of auditing them. For each account, it describes relevant audit evidence, assertions, objectives, and specific procedures including confirming balances, testing aging reports, and ensuring cut-off. The procedures are aimed at validating existence, completeness, accuracy, and proper valuation and classification of amounts in the financial statements.
The document discusses accounting principles related to plant assets, natural resources, and intangible assets. It covers several topics:
- Plant assets include physical resources used in business operations that are not for sale and have a useful life of multiple years.
- The cost of plant assets includes all expenditures to acquire and prepare the asset for use, such as purchase price, taxes, installation costs.
- Depreciation is the process of allocating the cost of a plant asset over its useful life. Straight-line, units-of-activity, and declining balance are common depreciation methods.
- Factors that determine depreciation expense are cost, salvage value, and useful life estimates. Deprec
1) The document provides an overview of chapter 1 of the textbook "Financial Accounting" which covers accounting basics. It defines accounting, identifies its users and uses, and explains key concepts like ethics, standards, assumptions and the accounting equation.
2) The accounting equation states that assets must equal liabilities plus equity. It defines the components of the equation as assets being resources owned, liabilities being debts or obligations, and equity being the ownership claim.
3) Business transactions impact the accounting equation by increasing or decreasing at least two elements as a transaction has a dual effect.
Financial accounting Meaning . This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTSBibek Prajapati
Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.
This is useful for, BCOM,MCOM,CA,CS,CMA STUDENTS
Prepare Balance Sheets and Profit & Loss A/c in IFRS formatBUSYforSMEs
An introductory ebook on IFRS covering the following topics:
What if IFRS?
Why do we need it?
What's in it for us?
Comparison between IFRS and GAAP
How can you prepare IFRS compliant Balance Sheets
Acquisition and Disposition of Property, Plant, and Equipmentreskino1
Identify property, plant, and equipment and its related costs.
Discuss the accounting problems associated with interest capitalization.
Explain accounting issues related to acquiring and valuing plant assets.
Describe the accounting treatment for costs subsequent to acquisition.
Describe the accounting treatment for the disposal of property, plant, and equipment.
The document discusses completing the audit process. It covers reviewing for contingent liabilities and commitments, obtaining and evaluating letters from the client's attorneys, conducting a post-balance sheet review for subsequent events, accumulating final evidence including analytical procedures and representation letters, evaluating overall audit results, communicating with the audit committee and management, and addressing the discovery of new information after issuing the audit report.
This document provides an overview of Positive Accounting Theory (PAT). It begins by defining positive and normative theories, and explaining how PAT seeks to explain and predict accounting practices rather than prescribe how accounting should be done. It then discusses the origins and assumptions of PAT, including how it was influenced by agency theory. Key aspects of PAT covered include how it views the firm as a nexus of contracts and the role of accounting in addressing agency problems and reducing agency costs. The document also outlines the major hypotheses of PAT and discusses how accounting can both efficiently reduce costs but also be manipulated opportunistically.
This document summarizes key accounting concepts related to cash, receivables, and related valuation issues. It defines cash and receivables, discusses how to recognize, measure, and present them in financial statements. Specific topics covered include cash controls, restricted cash, cash equivalents, accounts and notes receivable, allowance for doubtful accounts, present value concepts for long-term notes receivable.
Chapter 1: Overview of Financial ManagementMikee Bylss
This document provides an overview of financial management concepts across 4 learning objectives. It defines the roles of finance and accountings, different business organizations like proprietorships and corporations, the importance of ethics, and potential conflicts between managers and stockholders. Careers in finance and capital markets are also introduced.
This document provides an assignment classification table for Chapter 3 of Intermediate Accounting. It classifies the chapter's topics, questions, brief exercises, regular exercises, and problems by topic and learning objective. The table also describes the level of difficulty and estimated time to complete for each assignment. It includes 13 topics covered in the chapter and 10 learning objectives. The document provides guidance for instructors on organizing assignments to help students learn the material.
Master Corporation acquired 80% ownership of Stanley Wood Products on January 1, 20X1 for $160,000. On this date, Stanley's retained earnings were $50,000 and the fair value of the noncontrolling interest was $40,000. During 20X5, Master recorded its share of Stanley's income of $24,000 under the equity method and received $8,000 in dividends. Consolidation entries were made to eliminate the intercompany balances and income, assign beginning differentials, and prepare consolidated financial statements for Master and Stanley as of December 31, 20X5.
The document discusses accounting information systems and transaction cycles. It describes the three transaction cycles - expenditure, conversion, and revenue - and the two subsystems in each cycle involving physical and financial components. It also outlines traditional accounting records used in manual systems and documentation techniques for computer-based systems, including data flow diagrams, entity relationship diagrams, and document flowcharts.
This document provides an overview of financial accounting theory. It discusses what a theory is, different types of accounting theories (positive vs normative), and how theories have developed over time through both inductive and deductive approaches. Early theories were developed inductively by observing accounting practices, while later normative theories prescribed new practices. Positive theories seek to explain and predict practices. The document notes there is no universally accepted accounting theory and different researchers may embrace different paradigms. It also discusses evaluating and criticizing theories.
Accounting Global 9th Edition Horngren Solutions Manualmelofufa
This document contains sample exercises and solutions for recording business transactions in journals and preparing trial balances. It includes multiple journal entries recording various business transactions, as well as trial balances for several sample businesses. The exercises cover key accounting concepts like debits and credits, normal balances of accounts, and preparing and analyzing trial balances.
Lecture 23 expenditure cycle part ii -fixed assets accounting information sy...Habib Ullah Qamar
The document discusses fixed asset systems and their differences from inventory systems. Fixed asset systems process transactions for acquiring, maintaining, and disposing of long-term assets like land, buildings, and equipment. They record asset costs, depreciation, and location. Fixed asset transactions require approval since assets are long-term investments, unlike routine inventory purchases. Additionally, fixed assets are capitalized and depreciated over multiple periods, unlike inventories which are expensed immediately. The document also describes the acquisition, maintenance, and disposal processes in a computerized fixed asset system and the authorization and verification controls used.
The document discusses auditing procedures for trade receivables, trade payables, and inventories. It defines each account and outlines the purpose of auditing them. For each account, it describes relevant audit evidence, assertions, objectives, and specific procedures including confirming balances, testing aging reports, and ensuring cut-off. The procedures are aimed at validating existence, completeness, accuracy, and proper valuation and classification of amounts in the financial statements.
The document discusses accounting principles related to plant assets, natural resources, and intangible assets. It covers several topics:
- Plant assets include physical resources used in business operations that are not for sale and have a useful life of multiple years.
- The cost of plant assets includes all expenditures to acquire and prepare the asset for use, such as purchase price, taxes, installation costs.
- Depreciation is the process of allocating the cost of a plant asset over its useful life. Straight-line, units-of-activity, and declining balance are common depreciation methods.
- Factors that determine depreciation expense are cost, salvage value, and useful life estimates. Deprec
The document discusses accounting for property, plant, and equipment (PP&E). It defines PP&E as long-term tangible assets used in operations, including land, buildings, machinery, and equipment. Historical cost is the primary basis for valuing PP&E, which measures the cash paid or equivalent price to bring the asset to the location and condition for its intended use. Costs included in the initial valuation of PP&E comprise all expenditures needed to acquire and prepare the asset, such as purchase price, transportation, installation, and construction costs. The document also covers accounting for self-constructed assets and nonmonetary exchanges of PP&E.
This document discusses accounting for property, plant, and equipment. It covers topics such as the initial valuation of PP&E including acquisition costs, costs of self-constructed assets, and accounting for interest costs incurred during construction. The document provides learning objectives for a chapter on acquisition and disposition of PP&E and includes illustrations and examples to demonstrate accounting entries and calculations for capitalizing interest costs.
396
Chapter
Plant Assets, Natural
Resources, and
Intangible Assets
After studying this chapter, you should be
able to:
1 Describe how the cost principle applies
to plant assets.
2 Explain the concept of depreciation.
3 Compute periodic depreciation using
different methods.
4 Describe the procedure for revising
periodic depreciation.
5 Distinguish between revenue and
capital expenditures, and explain the
entries for each.
6 Explain how to account for the disposal
of a plant asset.
7 Compute periodic depletion of natural
resources.
8 Explain the basic issues related to
accounting for intangible assets.
9 Indicate how plant assets, natural
resources, and intangible assets are
reported.
S T U D Y O B J E C T I V E S
Feature Story
The Navigator✓
9
HOW MUCH FOR A RIDE TO THE BEACH?
It’s spring break. Your plane has landed, you’ve finally found your bags, and
you’re dying to hit the beach—but first you need a “vehicular unit” to get
Scan Study Objectives ■
Read Feature Story ■
Read Preview ■
Read text and answer
p. 402 ■ p. 409 ■ p. 412 ■ p. 417 ■
Work Comprehensive p. 421 ■
p. 422 ■
Review Summary of Study Objectives ■
Answer Self-Study Questions ■
Complete Assignments ■
The Navigator✓
Do it!
Do it!
JWCL165_c09_396-443.qxd 8/4/09 9:39 PM Page 396
397
you there. As you turn
away from baggage claim
you see a long row of
rental agency booths.
Many are names you are
familiar with—Hertz, Avis,
and Budget. But a booth
at the far end catches your
eye—Rent-A-Wreck
(www.rent-a-wreck.com).
Now there’s a company
making a clear statement!
Any company that relies
on equipment to generate
revenues must make decisions about what kind of equipment to buy, how
long to keep it, and how vigorously to maintain it. Rent-A-Wreck has decided
to rent used rather than new cars and trucks. It rents these vehicles across
the United States, Europe, and Asia. While the big-name agencies push
vehicles with that “new car smell,” Rent-A-Wreck competes on price. The
message is simple: Rent a used car and save some cash. It’s not a message
that appeals to everyone. If you’re a marketing executive wanting to impress
a big client, you probably don’t want to pull up in a Rent-A-Wreck car. But if
you want to get from point A to point B for the minimum cash per mile, then
they are playing your tune. The company’s message seems to be getting
across to the right clientele. Revenues have increased significantly.
When you rent a car from Rent-A-Wreck, you are renting from an independ-
ent business person who has paid a “franchise fee” for the right to use the
Rent-A-Wreck name. In order to gain a franchise, he or she must meet finan-
cial and other criteria, and must agree to run the rental agency according to
rules prescribed by Rent-A-Wreck. Some of these rules require that each fran-
chise maintain its cars in a reasonable fashion. This ensures that, though you
won’t be cruising down Daytona Beach’s Atlantic Avenue in a Mercedes con-
ver.
ch10-Acquisition and disposition of PPE.pptmorium2
This chapter discusses accounting for property, plant, and equipment. It describes how PP&E assets are initially valued at historical cost, including acquisition costs. It also discusses accounting for self-constructed assets and interest capitalization. The chapter explains how costs after acquisition are treated, including capitalizing improvements versus expensing repairs. It concludes by covering accounting for dispositions of PP&E assets.
Acquisition and disposition of property, plant, and equUmar Gul
The document discusses the accounting treatment for the acquisition and disposition of property, plant, and equipment (PP&E). It covers the initial valuation of PP&E including acquisition costs, self-constructed assets, and interest capitalization. It also discusses subsequent valuation including nonmonetary exchanges, contributions, and accounting for costs and disposals after acquisition.
The document discusses the five main financial statements that companies prepare:
1) The income statement reports revenues, expenses and net income over a period of time.
2) The retained earnings statement summarizes changes in retained earnings over time.
3) The statement of financial position reports assets, liabilities and equity at a point in time.
4) The statement of cash flows summarizes cash inflows and outflows over a period.
5) The comprehensive income statement includes items not in net income determination.
The financial statements are interrelated and provide different financial information to users.
ACQUISITION AND DISPOSITION OF PROPERTY, PLANT AND EQUIPMENT.pptJaafar47
The document discusses accounting for property, plant, and equipment. It covers topics such as the costs that should be included in the initial valuation of PP&E like land, buildings, equipment, and self-constructed assets. It also discusses accounting problems related to capitalizing interest costs during construction periods. Specifically, it outlines qualifications for capitalizing interest, how to determine the capitalization period, and how to calculate the amount of interest to capitalize.
Chapter 1. accounting in action studentAnnisa Bella
This chapter introduces financial accounting and provides an overview of the key concepts. It discusses how accounting provides important financial information for decision making. The chapter then describes the major accounting activities of recording, classifying, summarizing, and communicating financial information. It also outlines the main users of accounting information, both internal and external. Finally, it introduces the building blocks of accounting, including ethics, accounting standards, measurement principles, and assumptions.
This document discusses accounting for plant and intangible assets. It covers determining the cost of plant assets, capital vs expense expenditures, depreciation methods including straight-line and declining balance, accounting for disposals and impairments, nature of intangible assets including goodwill, depletion of natural resources, and cash flows from plant transactions.
This chapter discusses accounting for property, plant, and equipment (PP&E). It describes how PP&E assets are initially valued at historical cost, including acquisition costs. It also discusses accounting for self-constructed assets and interest capitalization during construction. The chapter covers accounting for costs after acquisition, including capitalizing improvements versus expensing repairs. It concludes with the accounting treatment for disposal of PP&E assets.
The document discusses key concepts related to accounting for property, plant and equipment (PPE) as per Indian Accounting Standard (IndAS) 16. It covers initial recognition of PPE at cost, components of cost, subsequent measurement using cost or revaluation model, depreciation methods, impairment and derecognition. It also includes examples on capitalization of borrowing costs, treatment of restoration costs, and practice questions related to accounting for PPE.
1. Capital expenditure means expenditure to acquire or improve assets and bring them into working condition. Examples include purchasing machinery or paying customs duty for imported machinery.
2. Revenue expenditure maintains assets in working condition or operates the business. Examples include repairs, salaries, or purchasing stationery.
3. Deferred revenue expenditure provides benefits over multiple years, such as heavy research or advertising costs, and is treated as revenue expenditure despite its multi-year benefits.
The document then provides examples to classify expenditures as capital, revenue or deferred revenue and discusses accounting for fixed assets including cost, revaluation, depreciation methods, and disposal.
Plant Assets, Plant assets and equipment, land, land improvements, Building, depreciation, computing depreciation, depreciation methods, straight line, units of activity, depreciation and taxes, plant assets disposal, retirement of plant assets, gain on disposal, lost on disposal, jose cintron, advance business consulting, mba4help.com
Plant Assets, Plant assets and equipment, land, land improvements, Building, depreciation, computing depreciation, depreciation methods, straight line, units of activity, depreciation and taxes, plant assets disposal, retirement of plant assets, gain on disposal, lost on disposal, jose cintron, advance business consulting, jose cintron, MBA, mba4help.com, Plant Assets, Plant assets and equipment, land, land improvements, Building, depreciation, computing depreciation, depreciation methods, straight line, units of activity, depreciation and taxes, plant assets disposal, retirement of plant assets, gain on disposal, lost on disposal, jose cintron, advance business consulting, jose cintron, MBA, mba4help.com
This document provides an overview of accounting for plant assets, natural resources, and intangible assets according to IFRS. It discusses how to determine the cost of various asset types like land, buildings, equipment, and vehicles. It also explains the concept of depreciation as a method to allocate the cost of plant assets over their useful lives. The document provides examples of accounting entries for purchasing and recording different asset types.
This document provides an overview of long-lived tangible and intangible assets. It defines long-lived assets as assets with useful lives longer than one year that are used in operations. It discusses acquisition and capitalization of costs, depreciation methods to allocate costs over the asset's useful life, impairment, disposal, and ratios to analyze long-lived assets. The learning objectives cover defining and classifying long-lived assets, applying the cost principle, depreciation methods, impairment effects, and analyzing acquisition, use and disposal of tangible and intangible long-lived assets.
This document discusses capital and revenue expenditures. Capital expenditures are incurred to acquire or improve assets used in business operations. Examples include purchasing machinery. Revenue expenditures are incurred to maintain assets and operate the business, like repairs and salaries. Deferred revenue expenditures provide benefits over multiple years, like research costs. Expenses must be classified correctly for financial reporting purposes like adhering to the matching principle and providing a true and fair view of financial performance.
This document discusses accounting standards for fixed and intangible assets. It defines fixed assets as assets used for producing goods or services that are not intended for resale, and provides examples such as land, buildings, and equipment. It also discusses how fixed assets are recorded at either historical cost or revalued price. Intangible assets are defined as non-physical rights that provide long-term benefits, including patents, copyrights, trademarks, and goodwill from business acquisitions. Specific types of intangible assets like patents, trademarks, and goodwill are further described.
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
How MJ Global Leads the Packaging Industry.pdfMJ Global
MJ Global's success in staying ahead of the curve in the packaging industry is a testament to its dedication to innovation, sustainability, and customer-centricity. By embracing technological advancements, leading in eco-friendly solutions, collaborating with industry leaders, and adapting to evolving consumer preferences, MJ Global continues to set new standards in the packaging sector.
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
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Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
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Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
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[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
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Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challenges
ch1.pptx
1. Intermediate Accounting
Seventeenth Edition
Kieso ● Weygandt ● Warfield
Lecture 1
Acquisition and Disposition of
Property, Plant, and Equipment
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