Plant Assets Aquisition free essay sample

The term property, plant and equipment, also called fixed assets, includes all tangible assets with a service life of more than one year that are used in the operation of the business and are not acquired for the purpose of resale. This includes equipment, furniture, tools, machinery, buildings and land. These assets are expected to provide services to the company for a number of years. Except for land, plant assets decline in value over their useful lives. Plant assets are usually subject to depreciation. Depreciation methods are not covered in detail in this paper. The book value of plant assets is the cost of the asset less accumulated depreciation. This amount is not an indication of the market value of the asset, which may be much higher than the book value in most cases. The difference between the market and book value of assets is an unrecorded asset. Also I’m going to include in this paper intangible assets that in some cases have more material significance than plant assets in the financial statements. We will write a custom essay sample on Plant Assets Aquisition or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 3) Cost Subsequent to Acquisition The cost principle requires that companies record plant assets at historical cost. APB Opinion No. 6 states that property, plant and equipment should not be written up to reflect appraisal, market or current values which are above cost. Cost consists of all expenditures necessary to acquire an asset and make it ready for its intended use. Examples are: purchase price, fright and installation cost are part of factory machinery. Expenditures to acquire new plant assets or to extend the life or enhance the value of existing plant assets are capital expenditures. For the cost to be capitalized, one of three conditions must be present: (a) the useful life of the asset must be increased, (b) the quantity of service produce from the asset must be increased, or (c) the quality of the units produce must be enhanced. Additions result in the creation of new assets, they should be capitalized. Improvements and replacements are substitutions of one asset for another. Improvements substitute a better asset for one currently used, whereas a replacement substitute a similar asset. The mayor problem in accounting for improvements and replacements concerns differentiating these expenditures from normal repairs. It should be capitalized only if an improvement or replacement increases the future service potential of the asset. Capitalization may be accomplished by: (a) substituting the cost of the new asset for the cost of the asset replaced, (b) capitalizing the new cost without eliminating the cost of the asset replaced, or (c) debiting the expenditure to accumulated depreciation. Reinstallation cost are generally carried forward as a separate asset and amortized against future income. Expenditures to repair or maintain plant assets that do not extend the life or enhance the value of the assets are known as operating expenditures. They usually are fairly small amounts that occur frequently throughout the service life. Examples are: motor tune-ups and oil changes and painting of buildings. Classification of Plant Assets: Land: companies often use as a building site for a manufacturing plant or office site. The cost of land includes (1) the purchase price, (2) closing cost such as title and attorney’s fees, (3) real estate broker’s commission, and (4) accrued property taxes and other liens on the land assumed by the purchaser. All necessary cost uncured in making land ready for its intended use increase the land account. When a company acquires a vacant lot, its cost includes expenditures for cleaning, draining, filling, and grading. If the land has a building on it that must be removed to make the site ready for construction of a new office building, the company includes all demolition and removal costs, less any proceeds from salvage materials, in the Land account. Buildings: when a building is purchase, such cost includes the purchase price, closing costs (insurance, attorney’s fees, etc. and real estate broker’s commission. Cost to make the building ready for its intended use consists of expenditures for remodeling rooms and offices, replacing roofs, etc. When a new building is constructed, its cost consists of the contract price plus payments made by the owner for architect’s fees, building permits and excavation costs. Equipment: includes assets used in operations such as office furniture, machinery, trucks, etc. The cost of the equipment consists of the purchase price, sales tax, freight charges and insurance paid by the purchaser. Two criteria apply in the determining the cost of equipment: (1) the frequency of the cost-one time or recurring, and (2) the benefit period-the life of the asset or one year. Interest Cost: capitalization of interest cost incurred in connection with financing the construction of property, plant, and equipment is addressed in FASB Statement No. 34, â€Å"Capitalization of Interest Cost â€Å". The profession generally follows the rule of capitalizing only the actual interest cost incurred during construction.

Sandusky Scandal Essays

Sandusky Scandal Essays Sandusky Scandal Essay Sandusky Scandal Essay that the senior officials acknowledged there may be a real problem but where in too deep and did not Pennsylvania State 14 know how to handle it. This concern along with denial are what prompted Schultz to seek outside council realizing these incidents were a part of a bigger issue with Sandusky (Spooking Sullivan, 2012). However, once the core group of officials again agreed to keep details of the incident hidden for the betterment of Penn State, they also ignored each of their individual consciences and moral ethics trusting the other persons Judgment and decisions over their own. Had there been no doubt that Sandusky intentions were innocent there would have not been so much secrecy surrounding it where any other issue was transparent between HRS, the board of trustees. There was a clear indication by these senior officials actions to weigh the success of the university over the code of principals and ethics it was founded on, focusing on the needs of the group and trust in each other over their obligation to protect children as school officials. Solution to ethical issues is a part of the previous discussion to implement checks and balances, rules and regulations. One way to prompt ethical behavior is to train employees to a see something, say something rule. This could be achieved by funding multiple lines of communication between departments and administration. The university could have easily funded a tip hotlist worked by an independent agency responsible for fielding and investigating complaints that could be summarized for the board of trustees in monthly meetings. This form of communication would create more openness to report department issues anonymously regardless if someone was covering it up. Chapter eight in Robbins and Judges Organizational Behavior, discusses the concept of courtship and grouping. An underlining issue of the Sandusky Scandal was that the core group was operating in a grouping capacity. According to B grouping occurs when a consensus overrides the realistic appraisal of alternative rouses of action, which is what resulted in the core group assigning Sandusky 15 behavior to being Just inappropriate oppose to criminal; because he was viewed as a longtime friend/colleague, instead of objectively situational based. The solution to this type of opinion forming in terms of B is utilizing courtship perception; which causes an individual to make a shift towards a less conservative opinion that would vary from the original groups position. Implementing a different course of action such as the officials idea to alert the police and HRS would have resulted in a better outcome for the entire group instead of its dismemberment from poor decision making and lack of leadership (2014, p. 263). Thoughts Conclusion and Ending The overall consensus of public opinion regarding the Sandusky scandal is that it could have been prevented. Considering how organizational behavior operates, its purpose is to create interpersonal relationships that serve a common purpose; whether it is a positive or negative outcome Monsoons, n. D. ). It is almost odd that the public reacted with such shock that an institution was capable of producing such a secretive environment believing they are above common law. The combination of individuals and environment that operate within a systematic structure influences the success or failures of businesses Monsoons, n. D. ). The structure of influence if based on the pattern of behavior that influences the environment and controls how individuals think and behave within that structured environment. Think about how B operates in other institutions that participate in scandalous behaviors and cover- ups. Since the dawn of enlightenment, the widespread scandals of the Roman Catholic Church have become a well-known secret. Thousands of reports have been add against the Catholic Church and their participation to cover-up child sexual abuse by Pennsylvania State University Scandal 16 priest. The notion of child abuse through the Catholic Church has been an on-going issue because of the loyalty shared among members of the church towards the Vatican (Kim, 2013). Like Penn State the Vatican is a representational imagine that people within the organization glorify. By comparison, in terms of a church and school being organizational institutions, Sandusky is as a priest; and the core group is as the clergy. Sandusky held a position of power that others sought to please and inform to; keep in mind, that scandals are seldom exposed until years after the initial occurrence (Kim, 2013). Yet after corruption within the organization becomes public, the blame does not fall on the entity that it represents. Mainly because people are not going to stop being catholic do to the reputation of priest the scandals have exhibited for the church. In the same terms, university students are not going to stop pursuing a higher education due to scandals within the athletic department. Scandals can be dismissed by blaming the corruption of those individuals involved while maintaining an image that the organization itself is not to be blamed for the behaviors of those that operate within it. Environments within an institution create a culture of the greater good mindset. There is an intangible entity that allows the most revolting acts of abuse virtually go unpunished (Borrowers, 2004). There is no difference in the fundamentals that govern B and its ability to take a group of people and control their behavior based on what bonds them to their organization and the environment within it. The institution of churches, schools, and governments operate under the same fundamental principles that is the basis of organizational behavior and what an individual is capable of within an inclusive environment loyal to a cause. The idea that organizational behavior is capable of producing the most influential environments in any type of group setting based on the individuals commitment to the greater cause of the Pennsylvania State University Scandal 17 institution itself, to the point of going against ones own morals and better Judgment (Hub, 2003). Organizational behavior is built on shared goals, commitment to the successes of the image, and deep trust towards the belief of an institution. For a member of the priesthood or faculty of the university to expose secrets would be a betrayal to what they have come to identify themselves as. This reason of exposing truths and feeling as though the individual has betrayed part of their own public identity, stands for public shaming; which may be worse than a moral driven secret and guilty conscious (Borrowers, 2013). Consider how powerful is the image for which one is willing and capable of committing crimes in the name of loyalty to their organization. References 8 Alder, C. (2013).

Zhongmin-MIT-Stanford-7days-editor-15561 Essay Example | Topics and Well Written Essays - 3750 words

Zhongmin-MIT-Stanford-7days-editor-15561 - Essay Example Obviously, he was not progressing much in his career. Soon, I noticed that he avoided talking with me directly and was not paying attention when I conducted team meetings. I also learned that he was trying to communicate the project matters to my manager, bypassing my authority. Knowing it was my responsibility to resolve the matter, I took the initiative to have a dialog with him away from the formalities of the office. So I invited him for lunch and simply tried to establish a personal connection between us. He gradually opened up to talk about his family and his hobbies, which were real estate and stock investment, two subjects that I was also interested in. That set the tone for the rest of the meeting. Once I felt he had settled down and relaxed, I asked him why he was avoiding me and not reporting to me. To my surprise, he was straightforward and told me that he felt uncomfortable to work under me as I was much younger than him and that other colleagues told him that he was passed up for promotion. Knowing his military background, I said that the purpose of a business reporting structure was to improve efficiency and to ensure group direction rather than enforce a hierarchy of status. I told him, â€Å"Patrick, we came from different backgrounds and I do not necessarily know more than you do. The management wanted us to work together on this project as our skill sets are complementary. It does not mean I am superior in any way to you. Let’s be friends and enjoy working together on this project† The following weeks, he let me help him with many development assignments. I took special care by choosing my words cautiously to ensure that he was comfortable in taking my guidance. Slowly, we drew closer and he was no longer nervous in my presence. He was a fast learner and I credited him for his progress in front of the executive team. He was so overjoyed that he was beaming all through that week. I realize now, that it must have been a rare