Chapter 9 - Reporting and interpreting long-lived tangible and intangible assets. In the past few chapters, you learned about the sale of goods and services to customers. This chapter focuses on the assets that enable companies to produce and sell goods and services. | Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Fundamentals of Financial Accounting 3e by Phillips, Libby, and Libby. Chapter 9 Reporting and Interpreting Long-Lived Tangible and Intangible Assets PowerPoint Authors: Susan Coomer Galbreath, ., CPA Charles W. Caldwell, ., CMA Jon A. Booker, ., CPA, CIA Fred Phillips, ., CA Chapter 9: Reporting and Interpreting Long-Lived Tangible and Intangible Assets. Tangible Physical Substance Intangible No Physical Substance Will not be used up within the next year Actively Used in Operations Definition and Classification Land Assets subject to depreciation Buildings and equipment Furniture and fixtures Examples Value represented by rights that produce benefits. Intangibles with a limited life, such as patents and copyrights, are subject to amortization. Intangibles with an unlimited (or indefinite) life, such as goodwill and trademarks, are not amortized. 9- Part I Long-lived assets are assets that are used actively in the operations of the business, and that are expected to benefit the operations into the future. Part II There are two major categories of long-lived assets. Tangible plant assets are long-term assets that have physical substance. Intangible assets are long-lived assets without physical substance. Part III Land, buildings, equipment, furniture, and fixtures are examples of long-lived tangible assets. Land is not depreciated. Buildings, equipment, furniture, and fixtures are depreciated. Depreciation allocates the cost of a long-lived asset over the periods benefited by its use. We will study depreciation in detail later in the chapter. Part IV Intangible assets have value represented by rights that produce benefits. Trademarks, copyrights, patents, licensing rights, technology, franchises, and goodwill are examples of intangible assets. We will take a look at each of these later in the chapter. Intangibles with a limited life, such as . | Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Fundamentals of Financial Accounting 3e by Phillips, Libby, and Libby. Chapter 9 Reporting and Interpreting Long-Lived Tangible and Intangible Assets PowerPoint Authors: Susan Coomer Galbreath, ., CPA Charles W. Caldwell, ., CMA Jon A. Booker, ., CPA, CIA Fred Phillips, ., CA Chapter 9: Reporting and Interpreting Long-Lived Tangible and Intangible Assets. Tangible Physical Substance Intangible No Physical Substance Will not be used up within the next year Actively Used in Operations Definition and Classification Land Assets subject to depreciation Buildings and equipment Furniture and fixtures Examples Value represented by rights that produce benefits. Intangibles with a limited life, such as patents and copyrights, are subject to amortization. Intangibles with an unlimited (or indefinite) life, such as goodwill and trademarks, are not amortized. 9- Part I Long-lived
