This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ated Financial Statements for additional information.
Inventories — Inventories are stated at the lower of cost or market with cost being determined on a first-in, first-out basis. spi2532X_appB_B1-B24.indd B-7
spi2532X_appB_B1-B24.indd B-7 1/20/12 4:20 PM
1/20/12 4:20 PM Confirming Pages B-8 APPENDIX B Dell Annual Report (selected pages) DELL INC.
NOTES TO CONSOLIDATED FINANCIAL
Property, Plant, and Equipment — Property, plant, and equipment are carried at depreciated cost. Depreciation is provided using the straight-line
method over the estimated economic lives of the assets, which range from ten to thirty years for buildings and two to five years for all other assets.
Leasehold improvements are amortized over the shorter of five years or the lease term. Gains or losses related to retirements or disposition of fixed
assets are recognized in the period incurred. Dell capitalizes eligible internal-use software development costs incurred subsequent to the completion
of the preliminary project stage. Development costs are amortized over the shorter of the expected useful life of the software or five years.
Impairment of Long-Lived Assets — Dell reviews long-lived assets for impairment when circumstances indicate the carrying amount of an asset may
not be recoverable based on the undiscounted future cash flows of the asset. If the carrying amount of the asset is determined not to be recoverable,
a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as
applicable. Dell reviews long-lived assets for impairment at the individual asset or the asset group level for which the lowest level of independent
cash flows can be identified.
Business Combinations and Intangible Assets Including Goodwill — During Fiscal 2010, Dell adopted the new guidance from the Financial
Accounting Standards Board ("FASB") on business combinations and non-controlling interests. Dell accounts fo...
View Full Document
This document was uploaded on 02/22/2014 for the course ACCT 6330 at University of Texas at Dallas, Richardson.
- Spring '11