Financial Accounting for Managers, 2/e, 2nd Edition

8

Accounting for Fixed Assets and Depreciation

CHAPTER OBJECTIVES

This chapter will help the readers to:

1. Differentiate between operating expenses and capital expenditure.
2. Indentify tangible assets and intangible assets.
3. Understand the principles involved in ascertaining the cost of acquired assets and self-generated assets.
4. Appreciate the treatment of expenditure on improvement, repair and maintenance.
5. Understand the concept of depreciation, depletion and amortization.
6. Apply different methods for calculating depreciation.
7. Understand the accounting of sale, exchange and discarding of fixed assets.
8. Understand the impact of change in method of depreciation and impairment of assets on the financial statements of a company.
9. Identify the ...