BU127 Lecture Notes - Lecture 10: Book Value, Capital Expenditure, Operating Cash Flow
![BU127 Full Course Notes](https://new-docs-thumbs.oneclass.com/doc_thumbnails/list_view/2218867-class-notes-ca-wlu-bu127-lecture5.jpg)
6
BU127 Full Course Notes
Verified Note
6 documents
Document Summary
Chapter 9 reporting and interpreting property plant, and equipment; natural resources and tangibles. Long-lived assets: assets used actively in the operations of the business and that are expected to benefit the operations into the future: tangible: land, buildings, furniture, mineral deposits, intangible: patents, copyrights, franchises, trademarks, goodwill. Acquisition cost includes the purchase price and all expenditure needed to prepare the asset for its intended use: does not include interest charges and cash discounts, ex. Building need renovation costs, title fees, legal feels. Basket purchase: an acquisition of two or more assets in a single transaction for a single lump sum ex. Ordinary repairs and maintenance: revenue expenditure. Does not extend life beyond original estimate. Process of allocating the acquisition cost of buildings and equipment over their useful lives by using a systematic and rational method. Carrying amount (book value): the acquisition cost of al asset less accumulated depreciation and any write-downs in asset value (doesn"t equal market value!!)