TAILIEUCHUNG - Lecture Financial reporting for managers: A value-creation perspective - Chapter 8

Chapter 8 - Long-term producing assets and investments in equity securities. The following will be discussed in this chapter: Investments in long-term producing assets; accounting for producing assets: an overview; acquisition: what costs to capitalize; post-acquisition expenditures; cost allocation; estimating useful life and salvage value; cost allocation methods;. | CHAPTER 8 Long-Term Producing Assets and Investments in Equity Securities Accounting for Long Lived Assets Figure 8-1 Acquisition: What Costs to Capitalize? Fair market value of the acquired asset, or Fair market value of what was given up to acquire the asset. Post Acquisition Expenditures Betterments are capitalized because they: - Increase the asset’s useful life, - Improve the quality of the asset’s output, - Increase the quantity of the asset’s output, or - Reduce the costs associated with operating the asset. Maintenance costs are treated as expenses. Cost Allocation Depreciation and amortization are methods of cost allocation. They are used to allocate the capitalized cost of productive assets over the years benefited (matching). Note: depreciation and amortization decrease the carrying values of assets, but are not a valuation techniques (., book value is not market value). Land Has indefinite life and therefore is not depreciated Historical .

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• Financial reporting
• Financial reporting for managers
• Financial statements
• Long term producing assets
• Equity securities
• Producing assets
• Framework of financial reporting
• Lecture Framework of financial reporting
• Regulatory system
• Reporting financial performance
• Reporting financial performance
• Financial accounting
• International financial reporting standards
• Financial reporting standards
• Merchandising operations
• Internal control
• Stockholders’ equity
• Financial statement analysis
• Financial information
• Economics of accounting information
• Computer associates international
• Financial reporting for leases
• Lease contracts
• Lessee accounting
• International financial reporting
• Conceptual framework
• Financial position
• Interpreting financial statements
• Consolidated financial statements
• Financial statements comprises
• Corporate financial reporting
• Group financial statements
• Sustainability reporting
• Reporting through XBRL
• Government accounting in india
• Regulatory framework
• Contingent liabilities