固定资产自然资源无形资产.pptx

固定资产、自然资源、无形资产固定资产、自然资源、无形资产Plant assets are tangible resources that are used in the operations of a business and are not intended for sale to customers.Plant assets are subdivided into four classes:1 Land 土地土地2 Land improvements 土地附着物土地附着物3 Buildings 建筑物建筑物4 Equipment 设备设备PLANT ASSETS PLANT ASSETS 固定资产固定资产固定资产固定资产Plant assets are recorded at cost in accordance with the cost principle.Cost consists of all expenditures necessary to acquire the asset and make it ready for its intended use.These costs include purchase price,freight costs,and installation costs.Expenditures that are not necessary should be recorded as expenses,losses,or other assets.DETERMINING THE COST OF DETERMINING THE COST OF PLANT ASSETSPLANT ASSETSInvoiceCost is measured by the cash paid in a cash transaction or by the cash equivalent price when non-cash assets are used in payment.The cash equivalent price is equal to the fair market value市场公允价值市场公允价值 of the asset given up or the fair market value of the asset received,whichever is more clearly determinable.MEASUREMENT OF PLANT ASSET COSTMEASUREMENT OF PLANT ASSET COST固定资产成本的计量固定资产成本的计量固定资产成本的计量固定资产成本的计量 The cost of Land includes:1）cash purchase price2）closing costs such as title and attorneys fees3）real estate brokers commissions 4）accrued property taxes and other on the land assumed by the purchaser.All necessary costs incurred in making land ready for its intended use are debited to the Land account.LANDLANDSometimes purchased land has a building on it that must be removed to make the site suitable for construction of a new building.In this case,all demolition and removal costs less any proceeds from salvaged materials are chargeable to the Land accountThe cost of land improvements includes all expenditures necessary to make the improvements ready for their intended use such as:1 parking lots,paving2 fencing,and3 lighting.LAND IMPROVEMENTSLAND IMPROVEMENTSThe cost of buildings includes all necessary expenditures relating to the purchase or construction of a building.When a building is purchased,such costs include the purchase price,closing costs,and real estate brokers commission.BUILDINGSBUILDINGSCosts to make the building ready for its intended use consist of expenditures for remodeling and replacing or repairing the roof,floors,wiring,and plumbing.When a new building is constructed,cost consists of the contract price plus payments for architects fees,building permits,interest payments during construction,and excavation costs.BUILDINGSBUILDINGSThe cost of equipment consists of the cash purchase price,sales taxes,freight charges,and insurance paid by the purchaser during transit.Cost includes all expenditures required in assembling,installing,and testing the unit.Recurring costs such as licenses and insurance are expensed as incurred.EQUIPMENTEQUIPMENTThe cost of equipment consists of the cash purchase price,sales taxes,freight charges,and insurance during transit paid by the purchaser.It also includes expenditures required in assembling,installing,and testing the unit.However,motor vehicle licenses and accident insurance on company cars and trucks are expensed as incurred,since they represent annual recurring expenditures that do not benefit future periodsAccount titles DRCRDelivery truck23820License expense80Prepaid insurance 1600 Cash 25500Account titles DRCRFactory machinery 54500 Cash 54500Depreciation is the process of allocating to expense the cost of a plant asset over its useful(service)life in a rational and systematic manner.Cost allocation is designed to provide for the proper matching of expenses with revenues in accordance with the matching principle.DEPRECIATION DEPRECIATION 折旧折旧折旧折旧During an assets life,its usefulness may decline because of wear and tear or obsolescence.Recognition of depreciation does not result in the accumulation of cash for the replacement of the asset.Land is the only plant asset that is not depreciated.DEPRECIATION DEPRECIATION 折旧折旧折旧折旧Three factors that affect the computation of depreciation are:1 Cost:all expenditures necessary to acquire the asset and make it ready for intended use.2 Useful life使用寿命使用寿命:estimate of the expected life based on need for repair,service life,and vulnerability to obsolescence.3 Salvage value 残值残值:estimate of the assets value at the end of its useful life.FACTORS IN COMPUTING FACTORS IN COMPUTING DEPRECIATIONDEPRECIATIONmethods of recognizing depreciation1 Straight-line直线法直线法2 Units of activity产量法产量法3 Declining-balance余额递减法余额递减法.Each method is acceptable under generally accepted accounting principles.Management selects the method that is appropriate in the circumstances.Once a method is chosen,it should be applied consistentlyUSE OF DEPRECIATION METHODS IN USE OF DEPRECIATION METHODS IN MAJOR U.S.COMPANIESMAJOR U.S.COMPANIES82%Straight-line4%Declining balance5%Units-of-activity9%OtherUnder the straight-line method,depreciation is the same for each year of the assets useful life.It is measured by the passage of time.In order to compute depreciation expense,it is necessary to determine depreciable cost.Depreciable cost is the total amount subject to depreciation and is computed as follows:Depreciable cost=Cost of asset-salvage valueSTRAIGHT-LINE STRAIGHT-LINE 直线法直线法直线法直线法$13,000 -$1,000 =$12,000$12,000 5 =$2,400 Cost Salvage ValueDepreciableCostDepreciableCostUsefulLifeDepreciationExpenseAccount titles DRCRDepreciation Expense 2400 Accumulated Depreciation 2400Book Value=cost accumulated depreciation =13000 2400=10600Year Depreciation Book Value 1240013000 2400=10,6002240010,600-2400=8200324008200-2400=5800424005800 2400=3400524003400 2400=1000Under the units-of-activity method,service life is expressed in terms of the total units of production or expected use from the asset,rather than time.The formulas for computing depreciation expense are:1 Depreciable Cost Total Units of Activity =Depreciation Cost per Unit2 Depreciation Cost per Unit X Units of Activity During the Year=Depreciation ExpenseUNITS-OF-ACTIVITY UNITS-OF-ACTIVITY 工作量法工作量法工作量法工作量法In using this method,it is often difficult to make a reasonable estimate of total activity.When the productivity of an asset varies significantly from one period to another,this method results in the best matching of expenses with revenues.UNITS-OF-ACTIVITY UNITS-OF-ACTIVITY 工作量法工作量法工作量法工作量法$12,000 100,000 miles =$0.12$0.12 15000 =$1,800DepreciableCostTotal units of activity DepreciableCost per unitDepreciableCost per unitUnits of yearDepreciationExpenseAccount titles DRCRDepreciation Expense 1800 Accumulated Depreciation 1800Book Value=cost accumulated depreciation =12000 1800=10200DECLINING-BALANCE DECLINING-BALANCE 余额递减法余额递减法余额递减法余额递减法 The declining-balance method produces a decreasing annual depreciation expense over the useful life of the asset.The calculation of periodic depreciation is based on a declining book value(cost less accumulated depreciation)of the asset.DECLINING-BALANCE DECLINING-BALANCE 余额递减法余额递减法余额递减法余额递减法Annual depreciation expense is calculated by multiplying the book value at the beginning of the year by the declining-balance depreciation rate.The depreciation rate remains constant from year to year,but the book value to which the rate is applied declines each year.The book value for the first year is the cost of the asset since accumulated depreciation has a zero balance at the beginning of the assets useful life.In subsequent years,book value is the difference between cost and accumulated depreciation at the beginning of the year.DECLINING-BALANCE 余额递减法余额递减法The formula for computing depreciation expense is:Book Value at Beginning of Year X Declining Balance Rate=Annual Depreciation ExpenseThis method is compatible with the matching principle because the higher depreciation in early years is matched with the higher benefits received in these years.DECLINING-BALANCE 余额递减法余额递减法double-declining-balance method双倍双倍余额递减法余额递减法Unlike the other depreciation methods,salvage value is ignored in determining the amount to which the declining balance rate is applied.A common application of the declining-balance method is the double-declining-balance method双倍余额递减法双倍余额递减法,in which the declining-balance rate is double the straight-line rate.If Barbs Florists uses the double-declining-balance method,the depreciation is 40%(2 X the straight-line rate of 20%).$13,000 x 40%=$5,200Book Valueat Beginningof 1st yearDecliningBalanceRateDepreciation ExpenseBook Value=13000 5200=7800$7800 x 40%=$3120Book Valueat Beginningof 2nd yearDecliningBalanceRateDepreciation ExpenseBook Value=7800 3120=4680$4680 x 40%=$1872Book Valueat Beginningof 3rd yearDecliningBalanceRateDepreciation ExpenseBook Value=4680 1872=2808Year Book Value Depreciation Rate Depreciation Expense Book value(ending)(1)(2)(3)=(1)(2)(1)(3)11300040%520078002780040%312046803468040%187228084280840%112316855168540%6741011 If wear and tear or obsolescence indicate that annual depreciation is inadequate or excessive,a change in the periodic amount should be made.When a change is made,1 there is no correction of previously recorded depreciation expense and2 depreciation expense for current and future years is revised.To determine the new annual depreciation expense,the depreciable cost at the time of the revision is divided by the remaining useful life.REVISING PERIODIC DEPRECIATION REVISING PERIODIC DEPRECIATION 折旧的修正折旧的修正折旧的修正折旧的修正Book value,1/01/05$5800Less:salvage value 1000Depreciable cost 4800Remaining useful years 3 years Revised annual depreciation ($4,800 3)=$1,600Barbs Florists decides on January 1,2005 to extend the useful life of the truck one year because of its excellent condition.The company has used the straight-line method to depreciate the asset to date,and book value is$5,800($13,000-$7,200).The new annual depreciation is$1,600,calculated as follows Ordinary repairs are expenditures to maintain the operating efficiency and expected productive life of the plant asset.They are debited to Repairs Expense as incurred and are often referred to as revenue expenditures 收入性支出收入性支出.EXPENDITURES DURING USEFUL EXPENDITURES DURING USEFUL LIFELIFEAdditions and improvements are costs incurred to increase the operating efficiency,productive capacity,or expected useful life of the plant asset.1 These expenditures are usually material in amount and occur infrequently during the period of ownership.2 Since additions and improvements increase the companys investment in productive facilities,they are debits to the plant asset affected,and are referred to as capital expenditures 资本性支出资本性支出.EXPENDITURES DURING USEFUL EXPENDITURES DURING USEFUL LIFELIFEEliminate the book value of the plant asset at the date of sale by debiting Accumulated Depreciation and crediting the asset account for its cost.Debit Cash to record the cash proceeds from the sale.Compute gain or loss.PLANT ASSET DISPOSALSPLANT ASSET DISPOSALSIf the cash proceeds are greater than the book value,recognize a gain by crediting Gain on Disposal for the difference.If the cash proceeds are less than the book value,recognize a loss by debiting Loss on Disposal for the difference.PLANT ASSET DISPOSALSPLANT ASSET DISPOSALS GAIN ON DISPOSALOn July 1,2002,Wright Company sells office furniture for$16,000 cash.The office furniture originally cost$60,000 and as of January 1,2002,had accumulated depreciation of$41,000.Depreciation for the first six months of 2002 is$8,000.The entry to record depreciation expense and update accumulated depreciation to July 1 is as follows:Date Accounts title DRCRJuly 1Depreciation expense8000 Accumulated Depreciation8000To record first six months depreciation Accumulated Depreciation=41000+8000=49000 GAIN ON DISPOSALAfter the accumulated depreciation is updated,a gain on disposal of$5,000 is calculated:Cost of office furniture$60,000Less:Accumulated depreciation$49,000Book value at date of disposal$11,000Proceeds from sale$16,000Gain on disposal$5,000Date Accounts title DRCRJuly 1Cash 16000Accumulated Depreciation49000 Office Furniture 60000 Gain on disposal 5000To record sale of furniture LOSS ON DISPOSAL Instead of the selling the office furniture for$16,000,Wright sells it for$9,000.In this case,a loss of$2,000 is calculated:Cost of office furniture$60,000Less:Accumulated depreciation$49,000Book value at date of disposal$11,000Proceeds from sale$9,000Loss on disposal$2,000Date Accounts title DRCRJuly 1Cash 9000Accumulated Depreciation49000Loss on disposal 2000 Office Furniture 60000To record sale of furniture Exchanges of plant assets can be for similar or dissimilar assets.In an exchange of similar assets,the new asset is the same type as and performs the same function as the old asset.In exchanges of similar assets,it is necessary to determine1 the cost of the asset acquired and2 the gain or loss on the asset given up.EXCHANGES OF PLANT ASSETSEXCHANGES OF PLANT ASSETSLosses on the exchange of similar assets are recognized immediately.The cost of the new asset received is equal to the fair market value of the old asset exchanged plus any cash or other consideration given up.A loss results when the book value is greater than the fair market value of the asset given up.LOSS TREATMENTLOSS TREATMENTCOMPUTATION OF COST OF NEW OFFICE EQUIPMENTRoland Company exchanges old office equipment for new similar office equipment.The book value of the old office equipment is$26,000($70,000 cost less$44,000 accumulated depreciation),its fair market value is$10,000,and$81,000 of cash is paid.The cost of the new office equipment,$91,000,is calculated as follows:COMPUTATION OF LOSS ON DISPOSALCOMPUTATION OF LOSS ON DISPOSALThrough this exchange,a loss on disposal of$16,000 is incurred.A loss results when the book value is greater than the fair market value of the asset given up.The calculation is as follows:In recording the exchange at a loss it is necessary to 1 eliminate the book value of the asset given up,2 record the cost of the asset acquired,and 3 recognize the loss on disposal.Date Accounts title DRCRJuly 1Office equipment(new)91000Accumulated Depreciation(old)44000Loss on disposal 16000 Office Furniture(old)70000 Cash 81000Gains on exchange of similar assets are not recognized immediately.Instead,they are deferred and reduce the cost basis of the new asset.The cost of the new asset received is equal to the fair market value of the old asset exchanged plus any cash or other consideration given up.A gain results when the fair market value is greater than the book value of the asset given up.GAIN TREATMENTGAIN TREATMENTCOST OF NEW EQUIPMENT(BEFORE COST OF NEW EQUIPMENT(BEFORE DEFERRAL OF GAIN)DEFERRAL OF GAIN)Marks Express Delivery exchanges old delivery equipment plus$3,000 cash for new delivery equipment.The book value of the old delivery equipment is$12,000($40,000 cost less$28,000 accumulated depreciation),its fair market value is$19,000.The cost of the new delivery equipment,$22,000,is calculated as follows:For Marks Express Delivery,there is a gain of