《会计学原理》课程教学课件（英文讲稿）Chapter 7 Long-lived Assets and Depreciation

Chapter7andLong-livedAssetsDepreciationOverview ofLong-Lived AssetsAcquisition Cost of Tangible AssetsDepreciation Method

Chapter 7 Long-lived Assets and Depreciation  Overview of Long-Lived Assets  Acquisition Cost of Tangible Assets  Depreciation Method

Overviewof Long-livedAssetsTangible AssetsIntangible Assets

Overview of Long-lived Assets  Tangible Assets  Intangible Assets

Types of AssetsLong-lived assets usedin the operationof a business are divided into categories:Plant AssetsIntangibleAssets

Plant Assets TerminologyRelatd ExpenseAccountAssetAccount(BaanceSheet)IncomeStaement)Plant AssetsLandNoneBuildings, Machinery and EquipmentFurniture and Fixtures,Depreciationand Land ImprovementsDepletionNatural ResourcesAmortizationIntangibles

Intangible AssetsNo physical formPatentsFranchisesLeaseholdsCopyrightsGoodwillTrademarks

IntangibleAssetsAmortization expense for an intangible assetcan be written off directly against the assetaccount rather than held in an accumulatedamortizationaccount.Assets with an indefinite useful lifeare not amortized.All intangible assets are subject to impaiment

Intangible Assets: PatentsPatents are federal governmentgrantsThey give the holder the right toproduce and sell an invention.Suppose a company pays $170,000to acquire a patent on January lThe company believes that itsexpected useful life is 5 years

Intangible Assets: PatentsJanuary1Patents170,000Cash170,000To acquire a patentDecember3134,000Amortization Expense34,000PatentsTo amortize the cost of a patent

Intangible Assets: CopyrightsLiterary compositions (novels)Musical compositionsFilms (movies)SoftwareOther works of artCopyrights extend 50 yearsbeyond the author's life

Intangible Assets: TrademarksTrademarks, Trade Names, orBrand Names are assets thatrepresent distinctive identificationsof a product or service