BUSI 2160U Lecture Notes - Lecture 3: Financial Statement

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31 Oct 2016
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Resou(cid:396)(cid:272)es that (cid:272)o(cid:374)t(cid:396)i(cid:271)ute to ea(cid:396)(cid:374)i(cid:374)gs o(cid:448)e(cid:396) (cid:373)o(cid:396)e tha(cid:374) o(cid:374)e pe(cid:396)iod ( (cid:1006),(cid:1007),(cid:1008) (cid:455)ea(cid:396)s multiple years*: remember that inventory is expected to be taken for less than a year, both intangible (intellectual property) and tangible assets. What is goodwill: use snow removal example; You get a truck and customers ser(cid:448)i(cid:272)e* (good(cid:449)ill (cid:271)e(cid:272)ause (cid:272)usto(cid:373)e(cid:396)s (cid:272)a(cid:374)"t (cid:271)e a(cid:374) asset) If the owner does a terrible job, goodwill can be written down. That"ll be further explained in accounting later down the years. Determining certain costs should be capitalized based on judgement! Training cost is excluded, because you can get someone who knows how to run the asset. Same with allocated overhead and advertising for new offering. Allocated overhead costs h/r folks, accounting folks - people working outside the company making decisions (non-labour or indirect costs) Electrical costs and additional employee labour is yes or no answers.

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