Chapter 8: Long-lived Assets
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- Jun 23, 2023
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- 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.
