中级财务会计-课件6.ppt

Property, Plant, and Equipment Chapter 6 Learning Objectives Record the acquisition of property, plant, and equipment. Determine the cost of assets acquired by the exchange of other assets. Compute the cost of a self-constructed asset, including interest capitalization. Record costs subsequent to acquisition. Record the disposal of property, plant, and equipment. Understand the disclosures of property, plant, and equipment. Explain the accounting for oil and gas properties. (appendix) Learning Objectives Identify the factors involved in depreciation. Explain the alternative methods of cost allocation, including activity and time-based methods. Record depreciation. Explain the conceptual issues regarding depreciation methods. Understand the disclosure of depreciation. Understand additional depreciation methods, including group and composite methods. Compute depreciation for partial periods. Explain the impairment of noncurrent assets. Understand depreciation for income tax purposes. Explain changes and corrections of depreciation. Understand and record depletion. The asset must be held for use and not for investment. The asset must have an expected life of more than one year. The asset must be tangible in nature. General RuleThe historical cost of acquiring an asset includes the costs necessarily incurred to bring it to the condition and location necessary for its intended use. Contract price Costs of closing the transaction, obtaining the title, options, legal fees, title search, insurance, past due taxes Driveways Parking lots Fencing Landscaping When plant assets are used that require substantial costs of dismantling, removal, and site reclamation at the end of the asset’s useful life . . . 1. The cost can be estimated. 2. The liability is the result of the future requirement to close or remove the asset, and cannot be satisfied until the operation of the asset ceases. 3. The liability cannot be avoided if the asset is used as