Plant Assets Aquisition, Disposition

ASC 360-10 provides guidance on accounting for property, plant, and equipment, and the related accumulated depreciation on those assets. This Subtopic also includes guidance on the impairment or disposal of long-lived assets. ASC 360-10 notes that long-lived tangible assets include land and land improvements, buildings, machinery and equipment, and furniture and fixtures.

According to AASB 116 Property, plant and equipment held beyond the normal operating cycle of entity are deemed to be non-current assets. Here’s the extract from the report.

Fixed assets are assets that will be held or used over a period longer than one year. Companies typically have land, equipment, and buildings as their fixed assets. The account is usually called property, plant, and equipment or PP&E.

Assets are things that a company owns that have value. This typically means they can either be sold or used by the company to make products or provide services that can be sold. Assets include physical property, such as plants, trucks, equipment and inventory. It also includes things that can’t be touched but nevertheless exist and have value, such as

According to IAS 16, The cost of an item of property, plant and equipment comprises, its purchase price, including

Your company has acquired land that is not undergoing activities necessary to get it ready for its intended use. You have been told to capitalize interest costs (the lesser of the actual or avoidable interest costs) associated with the acquisition of the land. Should you capitalize any interest costs?

The front page of the 2005 edition of the Contract for the Sale of Land (Standard Contract) deals with whether or not vacant possession will be provided on settlement. The Contract is either marked “vacant possession” or “subject to existing tenancy”. If no box is marked, then vacant possession is the default choice. Clause 17.1 of the Standard Contract provides that normally, the vendor must give the purchaser vacant possession of the property on completion.

There are several circumstances that assets can be capitalized: Three main categories are land, infrastructure valued over $100,000, and intangible assets that cost of one million dollars.

2. Edgar Co. acquired 60% of Kindall Co. on January 1, 2009. During 2009, Edgar made several sales of inventory to Kindall. The cost and selling price of the goods were $140,000 and $200,000, respectively. Kindall still owned one-fourth of the goods at

Property and Equipment—Depreciation and amortization are provided on a straight-line basis over the estimated useful fives of the assets. The following table shows estimated useful lives of property and equipment.

These costs involve the purchase of land, building or remodeling, hiring, licensing, amenities, and many other things.

Cost + percent of cost is the method of payment which is related to the cost of the job, the larger the cost of the job the higher the amount of fee that is to be paid by the owner. There is a little incentive to be efficient and economical in the construction but is subjected to abuse. Cost + fixed fee is paid regardless of the variation of the reimbursable cost factor. This method gives contractors an incentive to get the job done as quickly as possible in order to recover his fee over the shortest time frame.

10. Fixed asset turnover = Total Revenues in Statement of Operations / Net Property and

Property, Plant & Equipment (PPE) (AASB 116): “Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the item including borrowing costs that are related to the

For purposes of the asset provider financial discussion relative to investment, there is a cost and benefit analysis that always takes place. These elements are generally described as, for cost elements, facility capital costs (dictated by site location and design, as well as the partners involved in the planning process), facility maintenance costs (ongoing costs of maintaining a facility to ensure safe operations and upkeep), and operating costs (such as labor costs, fuel costs, equipment costs, and the time lost to congestion or to the breakdown of efficient supply chains).