BU127 Chapter Notes - Chapter 9: Impaired Asset, Rational Basis Review, Byrsonima Crassifolia
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BU127 Full Course Notes
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Chapter 9: reporting and interpreting property, plant, and equipment; natural resources; and. Insuf cient investment results in inadequate capacity to meet consumer demand. Excess investment results in unused capacity, wasted resources, and excessive expenses. Long-lived assets are assets that are used actively in the operations of the business, and that are expected to bene t the operations into the future. There are two major categories of long-lived assets: tangible assets and intangible. Tangible assets are long-lived assets that have physical substance. Intangible assets are long-lived assets without physical substance. There are three major categories of tangible assets: land, which is not depreciated, assets that are subject to depreciation (ex. building, equipment, furniture and. Patents, copyrights, trademarks, franchises and goodwill are examples of intangible assets. Intangibles with a de nite life, such as patents and copyrights, are subject to amortization (another word for depreciation) Intangibles with an inde nite life, such as goodwill and trademarks, are not amortized.
