chapter 8
CAPITAL ASSETS—TANGIBLE AND INTANGIBLE
HOW ARE CAPITAL ASSETS VALUED?
Units-of-Activity or Production Method
Accelerated or Declining-Balance Method
Recording Depreciation Expense
CHANGES IN DEPRECIATION ESTIMATES AND METHODS
ADDITIONAL EXPENDITURES ON CAPITAL ASSETS DURING THEIR LIVES
WRITEDOWNS AND DISPOSALS OF PROPERTY, PLANT, AND EQUIPMENT
Patents, Trademarks, and Copyrights
Comprehensive Example of Capital Asset Disclosures
STATEMENT ANALYSIS CONSIDERATIONS
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
- Describe the valuation methods for capital assets.
- Identify the types of asset acquisition costs that are usually capitalized.
- Explain the purpose of depreciation and implement the most common methods of depreciation, including capital cost allowance.
- Identify the factors that influence the choice of depreciation method.
- Describe and implement changes in depreciation estimates and methods.
- Account for the disposal and writedown (impairment) of capital assets.
- Describe and implement the depreciation method used most frequently for natural resources.
- Explain the accounting difficulties ...
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