tailieunhanh - Lecture Accounting: What the numbers mean (5/e) - Chapter 6: Accounting for and presentation of property, plant, and equipment, and other noncurrent assets
After reading this chapter, you should be able to answer the following questions: How are the costs of land, buildings, and equipment reported on the balance sheet? How are the terms capitalize and expense used with respect to property, plant, and equipment? What are the alternative methods of calculating depreciation for financial accounting purposes, and what are the relative effects of each on the income statement (depreciation expense) and the balance sheet (accumulated depreciation)?. | CHAPTER 6 ACCOUNTING FOR AND PRESENTATION OF PROPERTY, PLANT, AND EQUIPMENT, AND OTHER NONCURRENT ASSETS McGraw-Hill/Irwin ©The McGraw-Hill Companies, Inc., 2002 Learning Objectives How are the costs of land, buildings, and equipment reported on the balance sheet? How are the terms capitalize and expense used with respect to property, plant, and equipment? What are the alternative methods of calculating depreciation for financial accounting purposes, and what are the relative effects of each on the income statement (depreciation expense) and the balance sheet (accumulated depreciation)? McGraw-Hill/Irwin ©The McGraw-Hill Companies, Inc., 2002 Learning Objectives Why is depreciation for income tax purposes an important concern of tax- payers, and how does tax depreciation differ from financial accounting depreciation? What is the accounting treatment of maintenance and repair expenditures? What is the effect on the financial statements of the disposition of noncurrent assets either by abandonment or sale? What is the difference between and operating lease and a capital lease? McGraw-Hill/Irwin ©The McGraw-Hill Companies, Inc., 2002 Learning Objectives What are the similarities in the financial statement effects of buying an asset compared to using a capital lease to acquire the rights to an asset? What are the meanings of various intangible assets, how are their values measured, and how are their costs reflected in the income statement? What is the role of present value concepts in financial reporting, and what is their usefulness in decision making? McGraw-Hill/Irwin ©The McGraw-Hill Companies, Inc., 2002 Learning Objective 1 How are the costs of land, buildings, and equipment reported on the balance sheet? McGraw-Hill/Irwin ©The McGraw-Hill Companies, Inc., 2002 Land Shown on the balance sheet at its original cost Cost includes all ordinary and necessary items to get the land ready for its intended use Land acquired for investment or potential future use is . | CHAPTER 6 ACCOUNTING FOR AND PRESENTATION OF PROPERTY, PLANT, AND EQUIPMENT, AND OTHER NONCURRENT ASSETS McGraw-Hill/Irwin ©The McGraw-Hill Companies, Inc., 2002 Learning Objectives How are the costs of land, buildings, and equipment reported on the balance sheet? How are the terms capitalize and expense used with respect to property, plant, and equipment? What are the alternative methods of calculating depreciation for financial accounting purposes, and what are the relative effects of each on the income statement (depreciation expense) and the balance sheet (accumulated depreciation)? McGraw-Hill/Irwin ©The McGraw-Hill Companies, Inc., 2002 Learning Objectives Why is depreciation for income tax purposes an important concern of tax- payers, and how does tax depreciation differ from financial accounting depreciation? What is the accounting treatment of maintenance and repair expenditures? What is the effect on the financial statements of the disposition of noncurrent assets either by
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