Business Administration 2257 Lecture Notes - Lecture 9: Book Value, Income Statement, Income Tax
10 Apr 2016
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Document Summary
Chapter nine: reporing and analyzing long lived assets. Long lived resources that a company controls, that have physical substance, are used in the operaions of a business, and are not intended for sale to customers. They are used for the producion and sale of goods and services to customers, for rental to others, or for administraive purposes. Determining the cost of property, plant and equipment. Cost includes the purchase price, including certain taxes and duies, less any discounts or rebates, and the expenditures necessary to bring the asset to its required locaion and to make it ready for its intended use. These costs are capitalized, rather than expensed, if it is probable that the company will receive an economic beneit in the future from the asset and this beneit can be measured. Operaing expenditures costs that beneit only the current period. Capital expenditures costs that beneit future periods are included in a long-lived asset account.
