MGT101 Slides Modules 10-18

Contents

Sr.

No · Course Outline Topics · Recordin g Minutes Basic Definition and Concept · Depreciation Methods and Depreciation Rates · Basic Depreciation Accounting · Disposal of Fixed Assets - Accounting Entries · Disposal of Fixed Assets - at the beginning of the year · (for Loss) · Disposal of Fixed Assets - at the beginning of the year · (for Gain) · Disposal of Fixed Assets - during the year – (for Loss) · Disposal of Fixed Assets - during the year – (for Gain) · Exchange of Asset · Total Time - Minutes · Property Plant and Equipment

• These are assets that will be used over a period of time (in excess of one year)

• These are not held for re- sale in the normal course of trading

• These may be held for: · – Production of goods or services · – Selling of goods or services · – Administrative purposes · – Rental to others · Measurement at Recognition

• Purchased, constructed or manufactured assets are initially measured at cost

• Exchanged assets are initially measured at fair value, unless:

• The exchange transaction lacks commercial substance or

• Fair value cannot be determined, in these circumstances; carrying amount of the asset given up will be the value of the asset taken in exchange.