Question

Question: Refer to December 31, 2015, balance sheet of Samsung in Appendix A. What long-term assets discussed in this chapter are reported by the company?

Short answer

Following long-term assets are discussed in the chapter are reported by the company: -

• Long-term investment
• Property, plant, and equipment
• Intangible assets
• Long term prepaid expenses

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Step-by-step solution

Long-term assets

Long-term assets are assets that will have useful lives and provide value for more than one year into the future. On a classified balance sheet, long-term assets follow the current asset section and include the following: intangible assets; long-term investment; property, plant & equipment (PP&E); natural resources, etc.

Long-term assets discussed in the balance sheet of Samsung

• Long- term Investment:includes stocks and bonds held for investment purposes. It intends to hold on to it for more than a year. Also includes land and buildings that are being held for sale.

• Property, plant, and equipment: it is usually the largest section. Known by many different names i.e., plant assets, fixed assets, and PP&E. it includes land, land improvement, buildings, etc.

• Intangible assets: these are the assets having no physical existence. It includes goodwill, patent right, legal rights, etc.

• Long term prepaid expenses: prepaid are the items of expenses that are paid in advance in the normal course of business operations.