MGAC01H3 Chapter Notes - Chapter 10: Book Value
Document Summary
Chapter 10 property, plant, and equipment: accounting model basics notes. Property, plant, and equipment assets property, plant, and equipment are defined as assets that have the following characteristics: they are held for use in the production of goods and services, for rental to others, or for administrative purposes. They are not intended for sale in the ordinary course of business: they are used over more than one accounting period and are usually depreciated. Property, plant, and equipment provide services over many years. Through periodic depreciation changes, the cost of the investment in these assets, with the usual exception of land, is assigned to the periods that benefit from using them: they are tangible. These assets have a physical existence or substance, which makes them different from intangible assets. accounting standards require that the following two recognition criteria be satisfied: It is probable that the item"s associated future economic benefits will flow to the entity.
