tailieunhanh - Lecture Accounting: What the numbers mean (2/e) - Chapter 5: Accounting for and presentation of property, plant, and equipment (PPE) and other non-current assets
After completing this unit, you should be able to: Describe how the cost of land, buildings and equipment is reported on the balance sheet; explain the differences between the terms capitalise and expense with respect to property, plant and equipment; discuss the alternative methods of calculating depreciation and the relative affect of each on the income statement (depreciation expense) and the Balance Sheet (accumulated depreciation);. | CHAPTER 5 Accounting for and Presentation of Property, Plant, and Equipment (PPE) and Other Non-current Assets 5- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Learning Objectives Describe how the cost of land, buildings and equipment is reported on the balance sheet. Explain the differences between the terms capitalise and expense with respect to property, plant and equipment. Discuss the alternative methods of calculating depreciation and the relative affect of each on the Income Statement (depreciation expense) and the Balance Sheet (accumulated depreciation). Discuss the accounting treatment for maintenance and repair expenditures. Describe the differences between an operating and a finance lease. 5- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Learning Objectives Describe and explain the meaning of various intangible assets, how their values are measured and how their costs are reflected in the Income Statement. 5- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Types of Non-current Assets Future economic benefits, controlled, that entity will USE (infrastructure assets; capital assets) Land Buildings Equipment Leased assets Intangible assets Natural resources 5- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Decline in asset value in-use over its useful life Non-current Assets Acquisition COST of the asset. Cost of using asset: Depreciation of the asset. Repair and maintenance costs. Disposal of the asset at the end of useful life. PRIMARY ISSUES 5- Copyright 2007 McGraw-Hill Australia Pty . | CHAPTER 5 Accounting for and Presentation of Property, Plant, and Equipment (PPE) and Other Non-current Assets 5- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Learning Objectives Describe how the cost of land, buildings and equipment is reported on the balance sheet. Explain the differences between the terms capitalise and expense with respect to property, plant and equipment. Discuss the alternative methods of calculating depreciation and the relative affect of each on the Income Statement (depreciation expense) and the Balance Sheet (accumulated depreciation). Discuss the accounting treatment for maintenance and repair expenditures. Describe the differences between an operating and a finance lease. 5- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola .
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