ACC1000 Lecture Notes - Lecture 11: 6 Years, Deferred Tax, Byrsonima Crassifolia
Document Summary
Topic 4: accounting for p,p&e and intangible assets. De nition: a resource controlled by the entity as a result of past events and from which future economic bene ts are expected to ow to the entity. Recognition: it is probable that any febs associated with the item will ow to the entity; and the item has a cost or value that can be measured with reliability. Note, both ppe and intangible assets are line items. Objective: to prescribe the accounting treatment for ppe so that users can discern information about an entity"s investment in ppe and the changes in such investment. The principal issues in accounting for ppe are the: recognition of assets, determination of their carrying amounts, determination of their depreciation charges, impairment losses to be recognised. Scope: shall be applied when accounting for ppe unless another standard requires or permits a di erent treatment.