Non-current and Intangible Assets notes
16 notes by 12 users
This GoConqr page gathers more than 10 notes on non-current and intangible assets, including asset costs, fair value and useful life. They support university students and professional candidates practising accounting, and teachers looking for study material. Browse the notes to find a topic to revise.
Notes
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Exercise 10-3 (Acquisition Costs of Trucks) E10-3 (Acquisition Costs of Trucks) Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases 4 new trucks on April 1, 2014. The terms of acquisition...
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SAP references CWIP Treatment in SAP Create CWIP/AUC asset master (AS01) Create Internal order (KO01-with settlement receiver as CWIP asset) Capture all the costs against internal order initially At every month end, settle the inter...
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Untitled Chapter 10 Plant assets are defined as: Tangible assets used in a company’s operations that have a useful life of more than one accounting period.Top of Form One characteristic of plant assets is that they are: Used i...
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Untitled Change of Methods of Depreciation Accounting policies and principles need to be consistently applied while recording the financial transactions. This is the Principle of Consistency. Any change in the method of deprec...
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INTANGIBLE ASSETS - created from Mind Map
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Useful life of the asset an asset’s useful life management will consider: The forecast usage of the asset – some manufacturers will indicatethe expected usage of an asset, perhaps in terms of running hoursor volume of output. Possible obs...
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FINAL ADJUSTMENTS: DISPOSALS OF PROPERTY, PLANT OR EQUIPMENT MECHANICS • RECORD THE SALE PROCEEDS IN THE BANK ACCOUNT: DR BANK; CR DISPOSALS A/C • TRANSFER THE COST OF THE ASSET SOLD TO THE DISPOSALS ACCOUNT • TRANSFER THE DEPRECIATION PROVISION ON THE ASSET TO...
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Capitalising expenditure example In the year ended 30 September 20X1 Universal Power plc purchased aturbine from a company based in America. The American company builtthe turbine in accordance with detailed specifications supplied byUniversal Power p...
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Fair value Fair valueOnce capitalised, tangible non-current assets can be held at cost, less accumulated depreciation, or at their fair value (i.e. revalued amount).Holding assets at their fair value is subject to certain condit...
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Exam Q5 - Acquisition/Depreciation/Disposal Diminishing Balance MethodCarrying Amount at the Beginning of the Year x Percentage Rate = Annual Depreciation Expense Carrying Amount at the Beginning of the Year - Annual Depreciation Expense = Carrying Amount at th...
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Valuation of cost Items of property, plant and equipment are initially recorded at cost. Costincludes purchase price, plus any costs incurred in bringing the asset toits present location and getting it ready for use. Such costs are lik...
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IAS 16 PPE PPE should initially be showed at Cost in the SOFP. COST = (Asset's price, import duties, delivery charges, costs of preparing the site, installation costs) After acquisition, company should show the carrying amount o...
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Accounting for revaluation of Gains and Losses Accounting for revaluation gains and lossesGains and losses resulting from the revaluation of property, plant andequipment need to be accounted for and reported.Gains are usually credited to a Revaluation Reserve Acco...
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Accounting for Long Term Assets - created from Mind Map Plant Assets Natural Resources Intangibles
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IAS 16 - PPE [Capitalisation of Training Cost]
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IAS 40-Investment Property IAS 40- Investment PropertyMeasurementIAS 40- measure using FV model or cost modelFRS102-carried at FV if FV can be measured reliably otherwise it's the cost modelBorrowing CostsIAS 40- Borrowing costs that are direct...
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About non-current and intangible assets notes
GoConqr OriginalUsing non-current and intangible assets notes
These notes offer different entry points into the unit. Valuation of cost introduces the costs included when property, plant and equipment are first recorded. Fair value looks at how tangible non-current assets can be held after capitalisation. There is also a note on intangible assets and one on accounting for long-term assets.
Build a revision route
Start with Valuation of cost if you want to review what goes into an asset’s initial cost. Then read Useful life of the asset to consider factors used to estimate its useful life. For a systems focus, SAP references describes the treatment of construction in progress in SAP.
As you read, make a short summary of each note and return to any points you want to clarify. If you want a visual overview, switch to a mind map on the unit page; use a quiz when you want to check your understanding. Choose a note and start with the topic you need.
Frequently asked questions
Which note is a useful place to start?
Valuation of cost is a starting point if you want to review how the initial cost of property, plant and equipment is recorded. It covers the purchase price and costs of bringing an asset to its location and getting it ready for use.
What topics do the notes cover?
The listed notes cover asset costs, fair value, useful life and investment property. There are also notes on intangible assets and accounting for long-term assets. SAP references offers a different focus, describing construction in progress treatment in SAP.
Are these notes free to use?
Yes. Every note listed on this page is free to open and study, and you do not need an account. The resources were made by GoConqr users rather than by GoConqr, so you can explore different contributors’ approaches to the unit.