Chapter 10 - Acquisition and disposition of property, plant, and equipment. After completing this chapter you should be able to: Describe property, plant, and equipment, identify the costs to include in initial valuation of property, plant, and equipment, describe the accounting problems associated with self-constructed assets, describe the accounting problems associated with interest capitalization. | PREVIEW OF CHAPTER Intermediate Accounting IFRS 2nd Edition Kieso, Weygandt, and Warfield 10 Understand accounting issues related to acquiring and valuing plant assets. Describe the accounting treatment for costs subsequent to acquisition. Describe the accounting treatment for the disposal of property, plant, and equipment. After studying this chapter, you should be able to: Acquisition and Disposition of Property, Plant, and Equipment 10 LEARNING OBJECTIVES Describe property, plant, and equipment. Identify the costs to include in initial valuation of property, plant, and equipment. Describe the accounting problems associated with self-constructed assets. Describe the accounting problems associated with interest capitalization. “Used in operations” and not for resale. Long-term in nature and usually depreciated. Possess physical substance. Property, plant, and equipment are assets of a durable nature. Other terms commonly used are plant assets and fixed assets. PROPERTY, PLANT, AND EQUIPMENT Includes: Land, Building structures (offices, factories, warehouses), and Equipment (machinery, furniture, tools). LO 1 Understand accounting issues related to acquiring and valuing plant assets. Describe the accounting treatment for costs subsequent to acquisition. Describe the accounting treatment for the disposal of property, plant, and equipment. After studying this chapter, you should be able to: Acquisition and Disposition of Property, Plant, and Equipment 10 LEARNING OBJECTIVES Describe property, plant, and equipment. Identify the costs to include in initial valuation of property, plant, and equipment. Describe the accounting problems associated with self-constructed assets. Describe the accounting problems associated with interest capitalization. Historical cost measures the cash or cash equivalent price of obtaining the asset and bringing it to the location and condition necessary for its intended use. ACQUISITION OF PROPERTY, PLANT, AND EQUIPMENT (PP&E) In general, . | PREVIEW OF CHAPTER Intermediate Accounting IFRS 2nd Edition Kieso, Weygandt, and Warfield 10 Understand accounting issues related to acquiring and valuing plant assets. Describe the accounting treatment for costs subsequent to acquisition. Describe the accounting treatment for the disposal of property, plant, and equipment. After studying this chapter, you should be able to: Acquisition and Disposition of Property, Plant, and Equipment 10 LEARNING OBJECTIVES Describe property, plant, and equipment. Identify the costs to include in initial valuation of property, plant, and equipment. Describe the accounting problems associated with self-constructed assets. Describe the accounting problems associated with interest capitalization. “Used in operations” and not for resale. Long-term in nature and usually depreciated. Possess physical substance. Property, plant, and equipment are assets of a durable nature. Other terms commonly used are plant assets and fixed assets. PROPERTY, PLANT, AND .
