RSM219H1 Chapter Notes - Chapter 8: Cash Flow, Intangible Asset, Capital Cost Allowance
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RSM219H1 Full Course Notes
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3 main categories, also known as capital assets: ppe, intangible assets, goodwill. Ppe are known as tangible assets since they have a physical presence: purchase these assets to use them to generate revenues over multiple future periods, not purchased for resale (otherwise would be considered inventory) Intangible assets are long term assets without any physical form (include: trademarks, patents, copyrights, licenses, etc. : must be separately identifiable form other assets cannot be resold, license or rented, have legal or contractual rights associated with them. Invest in lt assets to generate future revenue. Assets have significant costs and will impact a company"s operations for many years into the future. Users should monitor the age of the lt assets. Understand average age and the cash outflow to replace them. Know implications these assets will have on future costs (understand depreciation) Know if any significant negative changes in the expected use of the asset.
