Chapter_9 - Property, Plant, Equipment, and Intangibles...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Property, Plant, Equipment, and Intangibles Chapter 9
Background image of page 1

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

View Full DocumentRight Arrow Icon
Property, Plant, and Equipment Cost Additional cost the company incurred to get the purchases running Repairs and Betterments Maintain the service ability of an assets Making an asset better Amortization Wear out with time Matching the cost of the assets against the revenue it generates
Background image of page 2
Property, Plant, and Equipment Change in Estimates Impairment of Assets PPE may go down in value and may reach a time that the NBV according to accounting records is greater than fair value of that asset in the market place today Debit loss on impairment of PPE Credit PPE
Background image of page 3

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

View Full DocumentRight Arrow Icon
Straight-Line Equal amount of amortization each period Units of Production Allocating amortization as a function of usage of the asset Varies form period to period depending on usage of the asset Eg. Airplane how much it flies Cost – estimated residual value / estimated activity level Allocation rate x activity period
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Chapter_9 - Property, Plant, Equipment, and Intangibles...

This preview shows document pages 1 - 5. Sign up to view the full document.

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