Property‚ Plant and Equipment Property‚ Plant and Equipment I- Nature of Accounting Issues Businesses purchase and use a variety of fixed assets‚ such as equipment‚ furniture‚ tools‚ machinery‚ buildings‚ and land. These fixed assets are long-term or relatively permanent assets. Also‚ they are tangible assets because they exist physically. They are owned and used by the business and are not offered for sale as part of normal operations. Perhaps the most descriptive titles these assets are
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PROPERTY‚ PLANT AND EQUIPMENT I. Major Characteristics a. Tangible assets (with physical substance) b. Used in business – production or supply of goods or services‚ for rental purposes‚ and for administrative purposes c. Expected to be used for a period of more than one year Examples Property not subject to depreciation – e.g.‚ land Property subject to depreciation – e.g.‚ building‚ machinery‚ equipment‚ furniture‚ fixtures‚ leasehold improvements II. Initial Recognition a. Should comply with
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13/08/2012 Topic 3 Property‚ Plant & Equipment The nature of PP&E • AASB 116 defines property‚ plant & equipment (PP&E) as: • tangible items • with a specific use within the entity • that are expected to be used during more than one period AASB 116 specifically excludes assets held for re-sale PP&E is normally divided into classes. Common classes include land‚ buildings‚ machinery‚ motor vehicles. • • 1 13/08/2012 Initial recognition of PP&E • Cost of an item is recognised as
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engineer for the past 26 years‚ has recently been promoted to management. His new position is engineering design services manager. He has 20 engineers from all disciplines reporting to him. The unit has not been performing well. Morale and performance are at all-time low. During the past two years‚ the unit’s productivity has fallen by 25 percent‚ absenteeism has risen by 10 percent‚ and job related injuries have risen by 12%. Andrew suspects that the problem have been caused by the misuse of the
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Mattel Property‚ Plant‚ and Equipment Property‚ plant‚ and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over estimated useful lives of 10 to 40 years for buildings‚ 3 to 10 years for machinery and equipment‚ and 10 to 20 years‚ not to exceed the lease term‚ for leasehold improvements. Tools‚ dies‚ and molds are amortized using the straight-line method over 3 years. Estimated useful lives are periodically reviewed
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1. Discuss the circumstances in which an auditor would prepare a proof of cash. (6 marks) Auditors would prepare a proof of cash when the client has material internal control weakness in cash. If all cash receipts were deposited and all deposits were recorded in the accounting records‚ all recorded cash disbursements were paid by the bank and all amounts that were paid by the bank were recorded. 2. What should be audited on an interbank transfer schedule? (5 marks) The following should be audited
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Magdalena Company purchased an equipment in exchange for a noninterest bearing note requiring eight payments of P 250‚000. The first payment was made on December 31‚ 2012‚ and the others are due annually on December 31. At the date of issuance‚ the prevailing rate of interest for this note is 13%. PV of an ordinary annuity of 1 at 13% for 8 periods 4.799 PV of an annuity of 1 in advance at 13% for 8 periods 5.423 What amount should be recorded as initial cost of equipment? a. P 1‚355‚750
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DEPARTMENT OF MANAGEMENT STUDIES SCHOOL OF MANAGEMENT PONDICHERRY UNIVERSITY Detailed Analysis of Power Plant Equipments (Power Sector) PROJECT REPORT Submitted By KAMALAKKANNAN G Section – B ACKNOWLEDGEMENT The successful completion of any task would be incomplete without mentioning the names of the persons who helped to make it possible. I take this opportunity to express my gratitude in a few words to all those who helped me in the completion of this project. I convey my sincere
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Manners and etiquette .Importance of Good Manners “With Americans‚ anything goes.” It seems that Americans are quite casual and don’t care much about their behaviors. Most Americans attitudes about good manners relate to showing respect and consideration for others. They believe that all people are entitled to equal opportunity and respect. So no one is privileged and no one is worthless. A person who acts in a humble and timid way will make his/her friends feel quite uncomfortable. On the other
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Student Name: Kwok Matthew Chun Wai Discuss the advantages and disadvantages for plants of living in an aqueous environment compared to a terrestrial one? Introduction: Plants are commonly classified to two main types: aquatic plant and land plant. They have different features to adapt the living environment. What by meant is that they require different adaptions to stay alive in their respective environment such as humidity and structure of leaves. Aquatic plants referred to as hydrophytes or macrophytes
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