ADMS 3585 Chapter Notes - Chapter 10: Capital Asset, Cash Flow, Operating Expense

• School: York University
• Department: Administrative Studies
• Course: ADMS 3585
• Professor: Professor Alcalde

Document Summary

Adms 3585 ch 10 ppe: accounting model basics. Items with multiple uses usually (cid:862)inventory(cid:863: major parts & standby equipment with specific capital asset useful more than 1 year. Ifrs cost include retirement obligations resulting from acquisition only: original cost estimates may change & capitalized through adjustment, cr asset retirement/restoration liability, obligation provisions/asset measured using pv of future costs. P. 565: eller"s (cid:271)ook (cid:448)alue is irrele(cid:448)a(cid:374)t, calculate independent fv using asset"s fv, non-monetary exchanges, share-based payments, use fv of asset acquired to measure acquisition cost. If cannot be determined reliably, use fv of shares given: aspe use more reliable method of the 2, ex. If carrying amount of asset given up > fv of asset received, must record at lower fv (asset received) Illustration 10-3 p. 568 acct for asset exchange. Land cost include: purchase price / closing cost / cost incurred to condition land for intended use / cost of assuming liens / additional land improvements that have indefinite life.