chap8 - Book Value and Asset Impairment Book Value =...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Acct 284 Chap. 8 CHAPTER 8 Reporting and Interpreting Property, Plant, and Equipment; Natural Resources; and Intangibles
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Acct 284 Chap. 8 Operational Assets assets owned by a business and used in its operations tangible assets * property * plant * equipment intangible assets * copyrights * trademarks * patents * licenses * franchises
Background image of page 2
3 Acct 284 Chap. 8 Acquisition Cost Purchase price Taxes paid at time of purchase Transportation charges Installation costs Setup costs to prepare for use Capital Expenditures: expenditures that are added to the acquisition cost of an asset Revenue Expenditures: expenditures that are expensed as incurred
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Acct 284 Chap. 8 Cost of Operational Assets Depreciation Depletion Amortization Note: LAND is not depreciated
Background image of page 4
5 Acct 284 Chap. 8
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 8
Background image of page 9
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Book Value and Asset Impairment Book Value = Acquisition cost – Accumulated depreciation, depletion, or amortization Asset impairment occurs when the estimated future cash flows fall below book value. 6 Acct 284 Chap. 8 Depreciation Methods 1. Straight line 1. Units of Production 1. Double declining balance 7 Acct 284 Chap. 8 Disposal of Assets Gain or Loss on Disposal: Gain/Loss = Sales Price - BV at date of sale * Be sure to depreciate asset up to the date of sale 8 Acct 284 Chap. 8 Ratio Analysis Fixed asset turnover ratio: FATO = Sales Avg . net fixed assets 9 Acct 284 Chap. 8 Cash Flow Effect of Operational Assets Purchases and sales of assets: Depreciation:...
View Full Document

This note was uploaded on 09/23/2009 for the course ACCT 284 taught by Professor Clem during the Spring '08 term at Iowa State.

Page1 / 9

chap8 - Book Value and Asset Impairment Book Value =...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online