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Chapter 8: Long-lived Assets

  • Page ID
    98042
    • Henry Dauderis and David Annand
    • Athabasca University via Lyryx Learning

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    Learning Objectives
    • LO1 – Describe how the cost of property, plant, and equipment (PPE) is determined, and calculate PPE.
    • LO2 – Explain, calculate, and record depreciation using the units-of-production, straight-line, and double-declining balance methods.
    • LO3 – Explain, calculate, and record depreciation for partial years.
    • LO4 – Explain, calculate, and record revised depreciation for subsequent capital expenditures.
    • LO5 – Explain, calculate, and record the impairment of long-lived assets.
    • LO6 – Account for the derecognition of PPE assets.
    • LO7 – Explain and record the acquisition and amortization of intangible assets.
    • LO8 – Explain goodwill and identify where on the balance sheet it is reported.
    • LO9 – Describe the disclosure requirements for long-lived assets in the notes to the financial statements.

    Long-lived assets or property, plant, and equipment (PPE) assets are used in the normal operating activities of the business and are expected to provide benefits for a period in excess of one year. Long-lived assets covered in this chapter consist of three types: property, plant, and equipment (PPE), intangible assets, and goodwill. Also discussed are depreciation and amortization, techniques to allocate the cost of most long-lived assets over their estimated useful lives.


    This page titled Chapter 8: Long-lived Assets is shared under a CC BY-NC-SA 3.0 license and was authored, remixed, and/or curated by Henry Dauderis and David Annand (Lyryx Learning) .

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