Part 2 book “Financial accounting - The impact on decision makers” has contents: Operating assets - property, plant, and equipment, and intangibles , current liabilities, contingencies, and the time value of money, long-term liabilities, stockholders’ equity, the statement of cash flows, financial statement analysis. | Operating Assets: Property, Plant, and Equipment, and Intangibles 8 AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO: LO1 Understand balance sheet disclosures for operating assets. LO2 LO3 LO4 LO5 LO6 LO7 Determine the acquisition cost of an operating asset. Determine which expenditures should be capitalized as asset costs and which should be treated as expenses. LO8 Explain how to calculate the acquisition cost of assets purchased for a lump sum. Analyze the effect of the disposal of an asset at a gain or loss. LO9 Understand the balance sheet presentation of intangible assets. Describe the impact of capitalizing interest as part of the acquisition cost of an asset. Compare depreciation methods and understand the factors affecting the choice of method. LO10 Understand the proper amortization of intangible assets. LO11 Explain the impact that long-term assets have on the statement of cash flows. Understand the impact of a change in the estimate of the asset life or residual value. LO12 Understand how investors can analyze a company’s operating assets. STUDY LINKS A Look at Previous Chapters Chapter 7 presented the accounting for a company’s current assets of accounts receivable, notes receivable, and investments. These assets are important aspects of short-term liquidity. A Look at This Chapter This chapter examines a company’s operating assets of property, plant, and equipment as well as intangibles. These assets are an important indicator of a company’s ability to produce revenue in the long term. A Look at Upcoming Chapters Later chapters discuss the financing of long-term assets. Chapter 10 presents long-term liabilities as a source of financing. Chapter 11 describes the use of stock as a source of funds for financing long-term assets. Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be .
