BU387 Lecture Notes - Lecture 11: Impaired Asset, Book Value, Capital Account
Document Summary
Capitalization company can add the cost to the asset, e. g. install air condition to building cost. ,000 and so ,000 is added to the building account. Non-monetary exchange non monetary assets are exchanged for other non monetary assets with little or no cash or other monetary assets: expectations: Exchange made to facilitate a sale e. g. switching products with someone else to make a sale. If the transaction has no commercial substance: exchange is recorded at the carrying value of the assets given up, adjust for any monetary component, if carrying value > fv, a loss should be recognized. ,000 and credit gain on value of investment property ,000: example: if the difference is a decrease by ,000 then debit loss on value ,000 and credit investment property by ,000. Ifrs borrowing costs that can be directly attributed to acquisition, construction, or development of qualifying assets should be capitalized. Aspe management has a choice of capitalizing or expensing such costs.
