Property Plant and Equipment - tangible assets held for use in production; expected to be used during more than one period.
A. Land
B. Land Improvements
C. Building
D. Machinery
E. Ship
F. Aircraft
G. Motor vehicle
H. Furniture and fixtures
I. Office equipment
J. Patterns, molds and dies
K. Tools
L. Bearer plants
Recognition:
Measured at cost
After recognition:
-Cost model
-Revaluation model
Acquisition:
-Cash basis
-On account
-On installment basis
-Issuance of share capital (FV property received, FV share capital, Par or stated value of share capital)
-Issuance of bonds payable (FV bonds payable, FV asset received, Face amount bonds payable)
-Exchange [(FV + cash payment >with commercial substance) (CA > lacks commercial substance)]
-Construction
Depreciation - systematic allocation of the depreciable amount of an asset over the useful life; is an expense
Factors:
Depreciable amount
Residual value
Useful life
Methods:
>Straight line - equally over the years of useful life
>Production - function of use
>Diminishing/Accelerated - decreasing depreciation charge over the useful life; higher depreciation in the earlier years and lower in the later years (sum of the years' digits & double declining)
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Accounting
RandomThis book is filled with accounting lessons specially crafted for accounting students and aspiring accountants. Dive into the world of numbers and financial know-how as I guide you through essential concepts and practical insights. Whether you're ju...
