PPT-Asset Depreciation Lecture No.

30 Chapter 9 Contemporary Engineering Economics Copyright 2016 Chapter Opening Story Delta Airlines has invested 100 million in improving luggage handling technology and equipment How does the cost of this . Long-Lived Assets. Presenter’s name. Presenter’s title. dd. Month . yyyy. costs that are . capitalized . and costs that are expensed . when incurred. Long-lived . assets . (noncurrent . assets or long-term . How to use CAMS. To provide control of and accountability of fixed assets.. To orderly monitor the physical condition of fixed assets.. To gather information needed for the preparation of management and financial reports.. Reference sections: 123(2) and Schedule II. . PART-A. 1- Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value. The useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of production or similar units expected to be obtained from the asset by the entity. Chapter 8. McGraw-Hill/Irwin. © 2009 The McGraw-Hill Companies, Inc.. Accelerated Depreciation. Depreciation. Repair. Expense. Expense. Early Years. High. Low. Later Years. Low. High. Accelerated depreciation . http://www.investopedia.com/terms/d/depreciation.asp. Depreciation. Buildings, machinery, equipment, furniture, fixtures, computers, outdoor lighting, parking lots, . cars, and . trucks are examples of . Context. Highly material. Significant impact on sustainability ratios. Based on professional judgement and assumptions. No one can ever accurately predict Useful life and Residual Value. Need to ensure Depreciation methodology is robust, makes sense and fully complies with all aspects of the standards.. in Accrual Accounting. . G.vijaya. . kumar. . Prof.nac. Introduction:. . Schedule XIV has been replaced with schedule II for depreciation calculation. 3. Financial Accounting. For exams from February 2014. Key to icons. Syllabus. A The . context and purpose of financial reporting. B The . qualitative characteristics of financial information. C . Answers to Key Questions. Christy Todd. ITS. Agenda. What, Where, When, How, and Why?. Your Questions. What happens when an asset is added?. Tables updated: . Asset . table - asset id and asset specific information (description, tag number, serial number, asset status, profile id). How to use CAMS. To provide control of and accountability of fixed assets.. To orderly monitor the physical condition of fixed assets.. To gather information needed for the preparation of management and financial reports.. except. the following :-. Forests, plantations and similar regenerative natural resources; . Wasting assets including expenditure on the exploration for and extraction of minerals, oils, natural gas and similar non-regenerative resources; . How to use CAMS. To provide control of and accountability of fixed assets.. To orderly monitor the physical condition of fixed assets.. To gather information needed for the preparation of management and financial reports.. , Plant and Equipment (PPE). Items of . acquired . for safety or environmental . reasons . Biological Asset :-. Bearer Plant: . Is a plant that . (satisfies all 3 . conditions). Bearer Plant. RECOGNITION CRITERIA FOR PPE. BY ASST. PROF DR. J . SAHA. DEPARTMENT . OF COMMERCE. Depreciation. . Accounting. Definition. A measure of . the . wearing . out, consumption or other . loss of . value of depreciable . assets .