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Chapters 9-10 AnkiCards - Coggle Diagram
Chapters 9-10 AnkiCards
Intangible Assets (11)
Depreciation, Impairment, & Depletion (10)
Acquisition & Disposition of Assets (9)
Expenses :heavy_minus_sign:
Additions Involved in Buying New/Improving Assets :new:
Revenue Expenditure: (Short-Term) Operating Expenses :hammer_and_wrench:
Accretion Expense: Update PV of Liability :arrows_counterclockwise:
Prudent Costs: Reversal of Co. Paying Too Much for Asset
Costs :fire::heavy_dollar_sign::
ARO/ARC Asset Retirement Obligation (Cost): Costs Required to Retire (Long-Lived) Assets. Like Cleaning up Site :older_man::skin-tone-4:
Avoidable Interest: If Expenditures weren't made for an Asset :currency_exchange::
Capitalization Period: Time Period Money Must be Capitalized :warning::money_with_wings:
Historical Cost: Original Cost of Asset :baby::skin-tone-3::
Historical Cost = Acquisition Price + Sales Tax
Assets :heavy_plus_sign:
Capital Expenditure: (Long-Term) Investments :classical_building::
PP&E
: Fixed Assets Providing Ongoing Value :robot_face:
Equipment: Assets Used in Operations :truck:
Self-Constructed Assets: Asset Company Builds for Own Use :building_construction:
Methods :fountain_pen: :star:
(WAAE) Weighted-Average Accumulated Expenditures :check:
:star:
Purpose: Calculates the Average Amount of Money Spent on a Project during a Specific Period; Considers the Timing of Expenditures.
Avoidable Interest Rate = WAAE * Appropriate Interest Rate
Lacks Commercial Substance - Some Cash Recieved
Recognized Gain = Cash Received/(Fair Value of Other Assets * Total Gain)
Valuation :heavy_dollar_sign::question:
Lump-Sum Price: A Single Price for Entire Set of Assets :100:::heavy_dollar_sign:
Capital Expenditures
: (Long-Term Investments):moneybag: :
Improvement
: A Better Replacement of Asset
Replacement
: Replacement of Equal Value Asset