BUS 251 Chapter Notes - Chapter 8: Capital Cost Allowance, Book Value, Impaired Asset

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Susan Bubra

Document Summary

Three main types of long term or capital assets. Ppe: tangible assets as they have a physical presence. Used to generate revenues over muliple periods in the future, not for resale. Oten have legal or contractual rights associated with them. Patents, trademarks & copyrights: legal life is the maximum for amorizing. Useful, or economic life, is generally used for calculaing amorizaion. Trade secrets: no legal registraion system in canada. Computer sotware: includes web development costs provided site is used to generate revenues. Development costs: can be capitalized provided speciic criteria are met. Amorizaion: similar to depreciaion but for intangible assets. Residual value for inite asset is normally zero. Assets with inite useful life must be tested for impairment. Acc amorizaion rarely used and intangible assets reduced directly. Premium or excess related to management, experise, reputaion, loyalty etc. Purchase price fair value of ppe and ideniiable assets + fair value of liabiliies.