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22_Long-Lived_Tangible_Assets-Acquisition

22_Long-Lived_Tangible_Assets-Acquisition - Should Sonoma...

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Click to edit Master subtitle style Long-lived Tangible Assets –  Acquisition Accountancy 301 Measurement & Disclosure Professor Clifton Brown 22 November 15, 2010
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Long-lived asset cycle Acquisition Utilization Disposal Sonoma  (tangible) Starbucks (C)  (intangible) Meteor  Delivery  Services  (depreciati on) CENCO  (impairment)
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Recognition & measurement Asset attributes (element  definition) Probable future  economic benefits Obtained/con- trolled by the entity Result of past  transactions/ events Relevant/reliable measurement attribute Acquisition cost necessary for intended use Estimation issues Interest Future costs
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Capitalization of interest Sonoma’s acquisition of the injection machine  involved it issuing a 6.5%, $100,000 note with  interest payable quarterly and the principal due at  the end of three years
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Unformatted text preview: Should Sonoma capitalize the present value of its interest payments into the acquisition cost of the machine? Why or why not? GAAP IFRS Next class – Wednesday, Nov Long-lived Intangible Assets – Acquisition Readings Revsine Chapter 10 (part) Siegel & Borgia article IAS 38 (indicated ¶) Case Starbucks Corp. (C) Presentations Teams 4, 5 & 6 Write ups Saturday Team 1 – Intuit Inc. Midterm exam 2 Scaled Case Q1 Q2 Q3 Average Score Paciolli, Luca 54.00 76.00 84.00 71.33 85.39 Grader* Chiorean Brown Greener Twigg Raw Scores Scaled Case Q1 Q2 Q3 Average Score Average 56.39 74.76 74.34 65.96 66.81 82.14 Standard deviation 15.22 8.98 9.53 20.15 10.10 7.05 Raw Scores Distribution Statistics (3 sections combined) & Letter grade distribution...
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