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

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

Document Summary

3 categories of long-term assets: ppe (tangible assets, intangible assets = w/o physical form. I. e. trademarks, patents, copyrights, etc: goodwill = expected future economic benefits that will arise from combo of 2 businesses. Premium/excess paid by 1 business when it is acquiring another. Companies invest in lt assets to generate future revenues. Purchase = outflow, proceeds from sale = inflow. Ppe assets normally do not produce revenues on their own. Usu used in combo w/ other ppe items & efforts of employees to generate revenue. Also have profit in future when sold. Cost model = ppe assets presented on statement of financial position at carrying amount. Carrying amount = cost less accumulated depreciation & accumulated impairment loss. Revaluation model = ppe assets carried at fair value less any subsequent acc deprec & impairment losses. Capitalized = included as part of asset"s cost. If it will create future economic benefit, extend useful life of asset.