O'Reilly logo

Intermediate Accounting: IFRS Edition, 2nd Edition by Terry D. Warfield, Jerry J. Weygandt, Donald E. Kieso

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

images

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

  1. 1 Explain the concept of depreciation.
  2. 2 Identify the factors involved in the depreciation process.
  3. 3 Compare activity, straight-line, and diminishing-charge methods of depreciation.
  4. 4 Explain component depreciation.
  5. 5 Explain the accounting issues related to asset impairment.
  6. 6 Explain the accounting procedures for depletion of mineral resources.
  7. 7 Explain the accounting for revaluations.
  8. 8 Explain how to report and analyze property, plant, equipment, and mineral resources.

Here Come the Write-Offs

The credit crisis starting in late 2008 affected many financial and non-financial institutions. Many of the statistics related to this crisis are sobering, as noted below.

  • In October 2008, the FTSE 100 in the United Kingdom suffered its biggest one-day fall since October 1987. The index closed at its lowest level since October 2004.
  • The U.S. Dow Jones Industrial Average fell below the 8,000 level for the first time since 2003.
  • Germany's benchmark DAX tumbled after the collapse of the proposed rescue plan for Hypo Real Estate (DEU).
  • Tightening credit and less disposable income led to Japanese electronic groups losing value; the Nikkei fell to its lowest point since February 2004.
  • The Hong Kong Hang Seng dropped in line with the rest of Asia, closing below 17,000 points for the first time in two years in October ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required