AFM101 Chapter Notes - Chapter 9: Accelerated Depreciation, Capital Cost Allowance, Intangible Asset

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM101
• Professor: Donna Psutka

Document Summary

Reporting and interpreting property, plant, and equipment; natural. Acquisition and maintenance of property, plant, and equipment. Tangible or intangible resources owned by a business and used in its operations to produce benefits over several years. Asset subject to depreciation: buildings and equipment, furniture and fixtures. Natural resource assets subject to depletion: mineral deposits and timber. Acquisition cost includes the purchase price and all expenditures needed to be prepare the asset for its intended use. Acquisition cost does not include financing charges and cash discounts. Building: purchase price, renovation and repair costs, legal and realty fees, title fees. Installation costs: modification to building necessary to install equipment, transportation. Land: purchase price, real estate commissions, title insurance premiums, delinquent taxes, surveying fees, title search and transfer fees (land is not depreciated) Record at the current market value of the consideration given, or the market value of the asset acquired, whichever is more clearly evident.