Chapter 8, Long-Lived Tangible and Intangible Assets The Source 8章，长寿的有形和无形资产的来源.ppt

FINANCIAL ACCOUNTING AN INTRODUCTION TO CONCEPTS, METHODS, AND USES 12th Edition Learning Objectives Understand the concepts of distinguishing expenditures that accountants capitalize as assets, and subsequently depreciate or amortize, from expenditures that accountants expense in the period incurred. Understand the concepts underlying the measurement of acquisition cost for an asset. Understand depreciation and amortization as processes of cost allocation, not of valuation. Learning Objectives (cont.) Develop skills to compute depreciation or amortization under various commonly used methods. Develop the skills to re-compute depreciation or amortization for changes in estimates of service lives and salvage values. Develop the skills to compute an impairment loss on long-lived assets. Develop the skills to record the retirement of assets at various selling prices. Chapter Outline 1. Capitalization versus immediate expensing 2. Measurement of acquisition costs 3. Treatment of acquisition cost over life of asset 4. Depreciation and amortization: fundamental concepts 5. Depreciation and amortization measurement 6. Impact of new information about long-lived assets 7. Retirement of assets Chapter Outline (Cont.) Financial statement presentation Analyzing financial statement disclosures of long-lived assets An international perspective Chapter Summary Appendix 8.1: Effects on the Statement of Cash Flows of transactions involving long-lived tangible and intangible assets Differentiate between Capitalizing versus Immediate Expensing Should firms treat expenditures as: 1. Expenses in the period incurred, or 2. Assets (that is, capitalize the cost)? An expenditure is an asset if the firm: 1. has acquired rights to future use as the result of a past transaction, and 2. can measure or quantify the future benefits. Patterns of Expiration of Costs Recognizing the expiration of the cost of an asset need not be linear. There are many other patterns each with some advantages and d