, Chapter 3 : Purchasing and
Financing Long-Term
Assets.
3 .
1-
Accounting for tangible long-term assets :
Defining An Asset : J 1/ .
.
Note : InThis course
,
we follow ASPE for
defining an Asset
.
Asset : Is a resource , controlled by company a
that will help the company obtain future
economic benifits (revenue or cash flows)
Criteria :
. It represents
1 a future benifit that contributes directly or
indirectly to future cash flows
2 . The company can control access to the benefit
. The
3 transaction or event which provides the
company
with control of the benefit has already occurred .
Expense Represent : those
thingsofthe company spends money on
in the normal course business which dont explicitly
contribute future benefits .
Current Assets : Economic resources that will be sold or used by
the within 12 months of the reporting
company
period .
Financing Long-Term
Assets.
3 .
1-
Accounting for tangible long-term assets :
Defining An Asset : J 1/ .
.
Note : InThis course
,
we follow ASPE for
defining an Asset
.
Asset : Is a resource , controlled by company a
that will help the company obtain future
economic benifits (revenue or cash flows)
Criteria :
. It represents
1 a future benifit that contributes directly or
indirectly to future cash flows
2 . The company can control access to the benefit
. The
3 transaction or event which provides the
company
with control of the benefit has already occurred .
Expense Represent : those
thingsofthe company spends money on
in the normal course business which dont explicitly
contribute future benefits .
Current Assets : Economic resources that will be sold or used by
the within 12 months of the reporting
company
period .
