Chapter F9 Power notes Fixed Assets and Intangible Assets Learning Objectives 1. Nature of Fixed Assets 2. Accounting for Depreciation 3. Capital and Revenue Expenditures 4. Disposal of Fixed Assets 5. Leasing Fixed Assets 6. Internal Control of fixed Assets 7. Natural resources 8. Intangible Assets C9 9. Financial Reporting 10. Financial Analysis and Interpretation c9-1
C9 - 1 Learning Objectives Power Notes 1. Nature of Fixed Assets 2. Accounting for Depreciation 3. Capital and Revenue Expenditures 4. Disposal of Fixed Assets 5. Leasing Fixed Assets 6. Internal Control of Fixed Assets 7. Natural Resources 8. Intangible Assets 9. Financial Reporting 10. Financial Analysis and Interpretation Chapter F9 Fixed Assets and Intangible Assets C9
Chapter F9 Power notes Fixed Assets and Intangible Assets Slide #f Power Note Topics 3. Fixed Assets and Depreciation 18. Depreciation Methods 22. Capital and revenue Expenditures 28. Disposal of Fixed Assets 35.Leasing Fixed Assets 36. Depletion and Amortization 38. Balance Sheet Presentation 40. Fixed Assets to Long-Term Debt Note: To select a topic, type the slide and press Enter c9-2
C9 - 2 • Fixed Assets and Depreciation • Depreciation Methods • Capital and Revenue Expenditures • Disposal of Fixed Assets • Leasing Fixed Assets • Depletion and Amortization • Balance Sheet Presentation • Fixed Assets to Long-Term Debt Slide # Power Note Topics 3 18 22 28 35 36 38 40 Note: To select a topic, type the slide # and press Enter. Chapter F9 Power Notes Fixed Assets and Intangible Assets
Nature of fixed Assets Fixed assets are long- ASSETS LIABILITIES term, relatively permanent, tangible assets such as buildings and equipment OWNER'S used to help produce Fixed EQUITY revenues Assets EXPENSES REVENUES c9-3
C9 - 3 LIABILITIES OWNER’S EQUITY Fixed assets are longterm, relatively permanent, tangible assets such as buildings and equipment used to help produce revenues. REVENUES ASSETS EXPENSES Fixed Assets Nature of Fixed Assets
Nature of fixed Assets Fixed assets are long- ASSETS LIABILITIES term, relatively permanent, tangible assets such as buildings and equipment OWNER'S used to help produce Fixed EQUITY revenues Assets All fixed assets except land lose their capacity EXPENSES REVENUES to provide services This loss of productive capacity is recognized as depreciation expense. c9-4
C9 - 4 Nature of Fixed Assets LIABILITIES OWNER’S EQUITY Fixed assets are longterm, relatively permanent, tangible assets such as buildings and equipment used to help produce revenues. REVENUES ASSETS EXPENSES Fixed Assets All fixed assets except land lose their capacity to provide services. This loss of productive capacity is recognized as depreciation expense
Costs of Acquiring Fixed Assets Include: Sales tax and freight costs Installation and assembling Repairs and reconditioning(used assets) Testing and modifying Insurance while asset is in transit c9-5
C9 - 5 Costs of Acquiring Fixed Assets Include: Sales tax and freight costs Installation and assembling Repairs and reconditioning (used assets) Testing and modifying Insurance while asset is in transit