ACTG 1P12 Lecture Notes - Lecture 5: The Purchase Price, Finance Lease, Operating Lease
1 Feb 2016
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Are not intended for sale to customers. The purchase price, including certain kinds of non-refundable taxes and duties, less. The expenditures necessary to bring the asset to its required location and to make it any discounts or rebates ready for its intended use. An estimate of any future obligations related to dismantling, removing, or restoring the asset at the end of its useful life. Operating expenditures expenditures that benefit only the current period, immediately charged against revenues as an expense. Capital expenditures expenditures that benefit future periods, recorded (capitalized) as long-lived assets. Asset retirement costs the amount added to the cost of a long-lived asset that relates to obligations to dismantle, remove, or restore an asset when it is retired. Property, plant, and equipment are often subdivided into four classes: Land improvements, such as driveways, parking lots, fences, and underground sprinkler systems. Buildings, such as stores, offices, factories, and warehouses.
