ACC 3305 Study Guide - Midterm Guide: Current Liability, Financial Statement, Refinancing

• School: Baylor University
• Department: Accounting
• Course: ACC 3305
• Professor: Suzanne Abbe

Document Summary

Capitalized interest is depreciated as opposed to being expensed all at once. Normal repairs: repair and maintenance expense. Plot of land purchased with unwanted building on it: building should be included in cost of land. Capitalization of interest = the cost of the funds used to finance a project, such as the construction of a long-term asset. Three characteristics of pp&e: acquired for use in operations and not for resale, long-term and usually subject to deprecation (except land, tangible (cid:3021)(cid:3042)(cid:3047)(cid:3039) (cid:3014)(cid:3023) (cid:3046)(cid:3046)(cid:3032)(cid:3047)(cid:3046) (cid:3039)(cid:3048)(cid:3040)(cid:3043) (cid:3046)(cid:3048)(cid:3040) (cid:1870) (cid:1871) (cid:1870) (cid:3014)(cid:3023) (cid:3042)(cid:3033) (cid:3046)(cid:3046)(cid:3032)(cid:3047) Ifrs = may be valued at historical cost or market value (appraised value) Cost of plant assets = any cost necessary to get the asset in position and condition for use. Land = purchase price, closing costs, architect fees, building permits, excavation costs, interest costs during construction. If the building is purchased in a condition requiring repairs before use, the cost of repairs should be added to building.