BA 3340 Lecture Notes - Lecture 99: Extended Warranty, Capital Structure, Nopat
Document Summary
The conceptual framework is a number of standards developed by standard se8ers such as iasb and fasb. The following examples explain how diaerent items should be handled: Dednieon (ifrs): assets are resources under an enety"s control, as a result of a past event and from which the drm is likely to obtain future economic benedts. Property, plant and equipment are assets, but employers are not since they are not under the control of the company. Recogni&on of development costs - assets or expenses (p. 378) Furthermore, to be recognized in the balance sheet, the value of the asset(s) should be able to be measures reliable. All research costs are charged to the income statement. Development costs are capitalized and accumulated as intangible assets. Accouneng items may be classided in many diaerent ways. Some specidc informaeon is mandatory for companies to enclose in the annual report.
