BUSI 1001 Lecture Notes - Lecture 7: Cash Cash
8 Feb 2019
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Are held for use in the production or supply of goods and services, for rental to others, or for administrative purposes. They are expected to be used for more than one period. Therefore, they would be considered a long term asset. The cost of an item of property, plant and equipment can be classified as an asset if and only if: It is probable that future economic benefits associated with the item will flow to the entity. The cost of the item can be measured reliably. For this course, you can assume that the general recognition principle will always be applied. Significant parts of assets have to be capitalized and depreciated separately. These are the parts that tend to have a significant cost in relation to the total cost of the asset. E. g: you buy a plane at the cost of million and the part breakdown is like so: Each of the parts above would be depreciated separately.
