TAILIEUCHUNG - Lecture Fundamental accounting principles - Chapter 10: Plant assets, natural resources, and intangibles

Lecture Fundamental accounting principles - Chapter 10: Plant assets, natural resources, and intangibles. The learning objectives for this chapter include: Explain the cost principle for computing the cost of plant assets; explain depreciation for partial years and changes in estimates; distinguish between revenue and capital expenditures, and account for them. | Plant Assets, Natural Resources, and Intangibles Chapter 10 PowerPoint Editor: Beth Kane, MBA, CPA Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill. Education. Chapter 10: Plant Assets, Natural Resources, and Intangibles 10-C1: Cost Determination 2 Called Property, Plant, & Equipment Plant Assets Expected to Benefit Future Periods Actively Used in Operations Tangible in Nature C 1 3 Plant assets are tangible assets used in a company’s operations that have a useful life of more than one accounting period. Plant assets are also called plant and equipment; property, plant, and equipment; or fixed assets. For many companies, plant assets make up the single largest class of assets they own. PLANT ASSETS C 1 4 The four main issues in accounting for plant assets: (1) computing the costs of plant assets, (2) allocating the costs of most plant assets (less any salvage amounts) against revenues for the periods they benefit, (3) accounting for expenditures such as repairs and improvements to plant assets, and (4) recording the disposal of plant assets. Acquisition Cost Acquisition cost excludes financing charges and cash discounts All expenditures needed to prepare the asset for its intended use Purchase price Cost Determination C 1 5 Plant assets are recorded at cost when acquired. This is consistent with the cost principle. Cost includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use. The cost of a factory machine, for instance, includes its invoice cost less any cash discount for early payment, plus any necessary freight, unpacking, assembling, installing, and testing costs. Examples are the costs of building a base or foundation for a machine, providing electrical hookups, and testing the asset before using it in operations. Finance charges are not included in the cost of an asset. If we elect to finance the .

• Kế toán - Kiểm toán
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Plant assets
• Natural resources
• Intangible assets
• Accounting information systems
• Fundamental system principles
• Technology based accounting systems
• Accounting information
• Financial accounting
• Managerial accounting
• Managerial cost
• Reporting manufacturing activities
• Merchandising operations
• Accounting cycle
• Completing the accounting cycle
• Classified balance sheet
• Accounting for partnerships
• Partnership form of organization
• Basic partnership accounting