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What characteristics are necessary for a company to include an asset in the category of property, plant, and equipment?View Solution: What characteristics are necessary for a company to include an

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 4GI

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Under IFRS, when a company chooses the revaluation model as its accounting policy for measuring property, plant, and equipment, which of the following statements is correct? a. When an asset is revalued, the entire class of property, plant, and equipment to which the asset belongs must be revalued. b. When an asset is revalued, individual assets within a class of property, plant, and equipment to which that asset belongs can be revalued. c. Revaluations of property, plant, and equipment must be made every three years. d. An increase in an asset’s book value as a result of the first revaluation must be recognized as a component of profit and loss.
Property plant and equipment are considered what type of asset?
Which of the following are criteria for determining whether to record an asset as a fixed asset? Group of answer choices A. must be an investment and long lived B. must be long lived and used by the company in its normal operations C. must be short lived and tangible D. must be tangible and an investment
Explain how a company--subject to SEC and FASB reporting requirements--decides which costs to include in the cost of a plant asset.
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Based on the knowledge that you have learned from this unit and the relevant accounting standards, answer the following questions. Your answers must demonstrate your own understandings and applications of relevant accounting standards, but not a direct quote of the standards. a.Use an example to explain what are included in the original cost of property, plant, and equipment when they are initially acquired. b. What is the basic principle for valuing property, plant, and equipment acquired in exchange for other non-monetary assets? c. Use an example to illustrate how gain or loss on disposal is calculated and recorded when an item of property, plant, and equipment is disposed of.
asap What is the criterion a company uses to decide whether to include an expenditure in the cost of property, plant,and equipment rather than expensing it? Give an example of the types of expenditures that are included in the cost of property, plant and equipment as a result of the application of this criterion
Explain how asset impairment differs from depreciation, depletion, and amortization. How do companies measure impairment losses for property, plant, and equipment and intangible assets with finite useful lives?
What is the criterion a company uses to decide whether to include an expenditure in the cost of property, plant,and equipment rather than expensing it? Give an example of the types of expenditures that are included in the cost of property, plant and equipment as a result of the application of this criterion
How long does an asset remain the most useful to the company? What do statutes and accounting rules mandate about assessing an asset's span of economic value?
Which of the following groups would be classified as intangible assets for financial accounting andreporting purposes? a. long-term notes receivable, copyrights, goodwill, and trademarksb. patents, computer software costs, franchises, and trademarksc. computer software costs, research and development costs for internally developed patents,patents, and goodwilld. organization costs, goodwill, costs of employee training programs, and trademarks
Which of the following groups would be classified as intangible assets for financial accounting and reporting purposes? Computer software costs, development costs for internally developed patents, research, and goodwill Long-term notes receivable, copyrights, goodwill, and trademarks Start-up costs, goodwill, costs of employee training programs, and trademarks Patents, software development costs, franchises, copyrights, and trademarks