Chapter 10 – PPE and Intangible Assets: Acquisition and Disposition

BuildingProperty, plant and equipment, along with intangible assets are long-lived assets that a company uses in the production of goods and services.  Unlike other assets, property, plant and equipment, and intangible assets cannot be easily converted to cash.  As such, they are classified on the balance sheet as non-current.

The cost of property, plant and equipment, as well as intangible assets includes not only the purchase price, but also additional costs required to acquire the asset and to bring it to its full productive state.  Examples include real estate commissions, legal fees, transportation costs, installation costs, etc.

Chapter 10 covers issues related to the acquisition and disposition of these long-lived assets.  To learn more, go here.