中外比较会计ch.ppt

,Chapter 7 Plant Assets orProperty,Plant and Equipment(PPE)(P188/310-210/332),Key words,revenue expenditure 收益性支出capital expenditure 资本性支出Book value 账面价值Residual(salvage)value 残值Impairment 减值,(Property,)Plant and Equipment,国际会计准则IAS16经过修订由原来的“固定资产会计”更名为“不动产、厂房和设备(Property,plant,and equipment)”，是近年来国外会计界在探讨取消固定效益（Fixed assets）这一概念的一种反映。,Example:Coco-cola annual report Page 31 GE financial statement Page 32,Characteristics of plant assets,1.plant assets are physical objects.(tangible)2.plant assets are acquired to be used in operations.(not for sale)3.plant assets provide benefits over several accounting periods.(long term),Cost of a plant asset,Application of history cost principleThe initial cost of a plant asset includes all expenditures necessary to get it in place and ready for use,such as related tax,interest,freight charges,insurance etc.,1.Land(P190/312):purchase price,brokerage commission,survey fees,legal fees,property taxes,expenditures for grading and clearing the land and for demolishing and removing the unwanted buildings.,购买价格、经纪人佣金、测量费、法律费、财产税，平整和清理支出以及摧毁和移动所不需要的建筑物的支出。,2.Buildings P191-192/313-3143.Machinery and Equipment(p192/314) purchase price 净购价 b.freight/transportation charges 运输费 c.insurance in transit 在途保险费 d.sales and other taxes 销售税及其他税 e.installation cost 安装成本 f.testing cost 试运行成本,4.Land and Leasehold Improvements(p192/314)土地及租赁物改良工程,Improvements to real estate such as driveways,fences,parking lots,sprinkler systems have a limited life and therefore are recorded in another account.(but sewer installation should be included in the land account),5.Construction in Progress(p192/314)在建工程 a plant asset that is being constructed,Acquisition of Assets,1.purchases Land 100,000 Cash(accounts payable)100,000,2.acquiring a donated assets Building 200,000 Donated Capital 200,000,3.by issuing stock Dr.Land Cr.Common stock（普通股）Contributed capital in excess of par（资本公积）,4.Lump-sum(basket)purchases(p193/315)一揽子购买 To allocate the acquisition cost among the assets on the basis of the relative fair market value（公允市价）of each.,Assume that a firm acquired land and a building in a lump-sum purchase for$90,000 cash.The land has an estimate fair market value of$25,000 and the building$75,000.,Land 22,500(90,000*25,000/100,000)Building 67,500 Cash 90,000,5.purchases with installment payment（分期付款）Arthur purchased machinery from General Co.on installment plan.Arthur issued a 10-year$1,000,000 note.the machinerys market value is$600,000.,Dr.Machinery 600,000 Discount on installment payable 400,000 Cr.Installment payable 1,000,000,Dr.Interest expense Cr.Discount on installment payable,EXPENDITURE,Increases operating efficiency or adds to capacity?,Capital and Revenue Expenditures,Depreciation（折旧）,1.straight-line method(SL)(Cost Residual value)/Years of Useful Life,2.units-of production method(UOP)(Cost Residual value)/Estimated Units of Production,3.declining-balance method(double-declining-balance,DDB 150%declining-balance)used in income tax returns,rather than financial statementAnnual depreciation expense=Remaining book value DB rateNotice that the residual value of a plant asset does not enter into the computation of depreciation expense by the declining-balance method.,4.Sum-of the-years-digits methodDepreciation Expense Accumulated depreciation,Depreciation and income taxes,P325/203 TranslationMost companies use the straight-line depreciation method for reporting to their stockholders and creditors on their financial statements.They also keep a separate set of depreciation records for computing their income taxes.For income tax purposes,most companies use an accelerated depreciation method.,Suppose you are a business manager.The IRS allows an accelerated depreciation method,which most managers prefer to straight-line depreciation.Why?Because it provides the most depreciation expense as quickly as possible,thus decreasing your immediate tax payments.You can then apply the cash you save to fit your business needs.,MACRS depreciation for tax purposes(P326/204)MACRS:Modified Accelerated Cost Recovery System 修订的加速成本回收制The Tax Reform Act of 1986,Depreciation for partial yearsP327/205,Purchased on or before the 15th of a month,record a full months depreciationPurchased after the 15th of a month,record no depreciationHalf-year convention 半年期惯例,Changing the useful life of a depreciable asst P327/205,This correction affects only the amount of depreciation expense that will be recorded in the current and future periods.The financial statements of past periods are not revised to reflect changes in the estimated useful lives of depreciable assets.未来适用法不用追溯调整,The change and its effect should be reported in notes to the financial statement.Example P328/206,Accounting for Plant Asset Disposals,When Plant assets lose their usefulness they may be disposed of in one of the following ways:1.discarded,2.sold,or3.traded(exchanged)for similar assets.,Gain or loss will be reported in the income statement as Other Income or Other Loss.,When plant assets are sold,the owner may break even,sustain a loss,or realize a gain.,Sale of plant assets,Dr.Cash Accumulated Depr.Equipment Loss on Disposal of plant assets Cr.Equipment Gain on Disposal of plant assets,Exercise:company sold a building with a historical cost of$200,000 and accumulated depreciation of$140,000 at the date of disposal for$80,000 cash.,Cash 80,000 Accu.Depn.140,000 Buildings 200,000 Gain on sale of building 20,000,Exchanging for similar assetsP331/209,Transfer the book value of the old asset plus any cash payment into the new asset account,The impairment（减值）of plant assets If the cost of an asset cannot be recovered through future use or sale,the asset should be written down（减记）to its net realizable value.The offsetting debit is to a loss account.These write-offs（转销数）generally do not enter into the determination of taxable income.,Dr.Non-operating expense Cr.provision for impairment on PPE,Natural Resources and Depletion自然资源和折耗,Natural Resources and Depletion,A business paid$400,000 for the mining rights to a mineral deposit estimated at 1,000,000 tons of ore.The depletion rate is$0.40 per ton($400,000 1,000,000 tons).,Natural Resources and Depletion,Adjusting Entry,Accumulated Depletion36 000 00,During the current year,90,000 tons are mined.The periodic depletion is$36,000(90,000 tons x$0.40).,Dec.31Depletion Expense36 000 00,depreciation of plant and equipment（折旧）depletion of natural resources（折耗）amortization of intangible assets(摊销）,