Chapter 11 slides

Chapter 11 slides - PP&E, Intangible Assets: Utilization...

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PP&E, Intangible Assets: Utilization and Impairment Depreciation, Depletion, etc. Anthony Meder, Ph.D. Nov. 17 and 22
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What we will learn Time and Activity based Depletion of natural resources Amortization of intangibles Impairment tests and charges Cost allocation for groups of assets Handling additional costs Accounting for changes and errors in
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Cost allocation—Depreciation, Depletion and Amortization Cost allocation—not a valuation, but allocating costs. Depreciation—cost allocation for Tangible Depletion—cost allocation for natural resources Amortization—cost allocation for intangibles We have figured our costs for the assets (Chapter 10). How do we allocate these costs?
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Three factors Service life—how long will the asset be useful Allocation base—value of usefulness to be consumed by the firm (i.e.: cost) Allocation method—pattern over which the usefulness will be consumed Straight line, sum of years digits, etc. Once we have these three items, we can
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This note was uploaded on 03/12/2012 for the course ACCT 211 taught by Professor Kamlet during the Spring '08 term at Binghamton.

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Chapter 11 slides - PP&E, Intangible Assets: Utilization...

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