Current Asset Classification

1
Current Asset Classification

• Readily marketable
• Intention to convert to cash

2
Current Marketable Sec.

• Held to maturity
• Trading securities
• Available for sale

3
Mark to Market--FASB 115

• Held to maturityno adj.
• Trading securitiesadjust to P L
• Avail. For saleadjust to equity

4
Changing Mkt. Sec. Classifications

• AFS to Trading
• Recognize unrealized G or L previously deferred
  in the equity section
• Trading to AFS
• Recognize current unrealized G or L, then
  transfer
• General rule
• Mark to market first
• Address prior deferrals second

5
L/T Equity

• Cost method or mark to market
• Equity method
• Consolidation

6
Long-lived Assets

• Acquisition
• Use
• Disposal

7
Acquisition

• Price freight prep install fees
• Interest on construction

8
Use

• Maintenance or Betterment
• Extend life
• Improve quality
• Increase output
• Reduce cost

9
Major Depreciation Methods

• Straight line
• (Cost - SV) / life
• SYD (Sum of years digits)
• (Cost - SV) R/(n(n1) / 2)
• Double declining balance
• NBV 2 / life

10
Disposal

• Proceeds - NBV Gain or loss
• Trade-indissimilar assets
• Value received vs. value given up