Accounting Principles 7Th Canadian Edition Volume 2 By Jerry J. Weygandt

Accounting Principles 7th Canadian Edition Volume 2 By Jerry J. Weygandt

This textbook, Accounting Principles 7th Canadian Edition Volume 2, authored by Jerry J. Weygandt, delves into the intricacies of long-lived assets in the realm of accounting. It provides students with a comprehensive understanding of calculating the cost of property, plant, and equipment, applying different depreciation methods, and explaining the factors that influence changes in periodic depreciation. With practical examples and in-depth explanations, this book equips learners with the knowledge and skills necessary to manage and account for long-lived assets effectively.

Chapter 9: Long-Lived Assets

Chapter Study Objectives

1. Calculate the cost of property, plant, and equipment: The cost of acquiring and preparing assets for their intended use is discussed, including allocation methods for multiple assets or significant components.
2. Apply depreciation methods to property, plant, and equipment: Various depreciation methods such as straight-line, diminishing balance, and units-of-production are explained, ensuring a systematic allocation of asset costs over their useful lives.
3. Explain factors influencing changes in periodic depreciation and calculate revised depreciation: Factors like capital expenditures, impairments, and changes in fair value necessitating revisions to periodic depreciation are elaborated upon, with clear calculation methods provided.
4. Demonstrate accounting for property, plant, and equipment disposals: Guidelines on handling asset disposals including updating depreciation, calculating gains or losses, and recording exchanges of assets are outlined for effective accounting practices.

Frequently Asked Questions (FAQs)

Q: Are the depreciation methods discussed in this textbook commonly used in the industry?

A: Yes, the depreciation methods explained, including straight-line, diminishing balance, and units-of-production, are widely employed in accounting practices for long-lived assets.

Q: How does this book address revisions to periodic depreciation?

A: The book provides a detailed explanation of factors that lead to changes in periodic depreciation and offers guidance on calculating revised depreciation amounts in such scenarios.

Q: Does this textbook cover accounting standards related to asset disposals?

A: Yes, the book includes comprehensive guidelines on accounting for property, plant, and equipment disposals, ensuring students grasp the necessary procedures for handling asset disposal transactions.

Conclusion

Accounting Principles 7th Canadian Edition Volume 2 by Jerry J. Weygandt is a valuable resource for students and professionals seeking a deep understanding of managing long-lived assets. With its detailed discussions on cost calculation, depreciation methods, revisions to depreciation, and disposal of assets, this book serves as a comprehensive guide to effective asset management and accounting practices.