会计学人大出版英文版第23版Chap010.ppt

Property Plant andEquipmentandIntangibleAssets AcquisitionandDisposition 10 McGraw Hill Irwin Copyright 2011bytheMcGraw HillCompanies Inc Allrightsreserved Long lived Revenue producingAssets TypesofAssets ExpectedtoBenefitFuturePeriods GeneralRuleforCostCapitalizationTheinitialcostofanassetincludesthepurchasepriceandallexpendituresnecessarytobringtheassettoitsdesiredconditionandlocationforuse EquipmentNetpurchasepriceTaxesTransportationcostsInstallationcostsModificationtobuildingnecessarytoinstallequipmentTestingandtrialruns CoststobeCapitalized Land notdepreciable PurchasepriceRealestatecommissionsAttorney sfeesTitlesearchTitletransferfeesTitleinsurancepremiumsRemovingoldbuildings LandImprovementsSeparatelyidentifiablecostsofDrivewaysParkinglotsFencingLandscapingPrivateroads BuildingsPurchasepriceAttorney sfeesCommissionsReconditioning CoststobeCapitalized NaturalResourcesAcquisitioncostsExplorationcostsDevelopmentcostsRestorationcosts Theinitialcostofanintangibleassetincludesthepurchasepriceandallothercostsnecessarytobringittoconditionandlocationforuse suchaslegalandfilingfees IntangibleAssetsPatentsCopyrightsTrademarksFranchisesGoodwill CoststobeCapitalized AssetRetirementObligations Recognizetherestorationcostsasaliabilityandacorrespondingincreaseintherelatedasset Recordatfairvalue usuallythepresentvalueoffuturecashoutflowsassociatedwiththereclamationorrestoration Oftenencounteredwithnaturalresourceextractionwhenthelandmustberestoredtoauseablecondition IntangibleAssets Lackphysicalsubstance ExclusiveRights IntangibleAssets Futurebenefitslesscertainthantangibleassets AnexclusiverightrecognizedbylawandgrantedbytheUSPatentOfficefor20years Holderhastherighttouse manufacture orsellthepatentedproductorprocesswithoutinterferenceorinfringementbyothers R Dcoststhatleadtoaninternallydevelopedpatentareexpensedintheperiodincurred IntangibleAssets Patents Torch Inc hasdevelopedanewdevice Researchanddevelopmentcoststotaled 30 000 Patentregistrationcostsconsistedof 2 000inattorneyfeesand 1 000infederalregistrationfees WhatisTorch spatentcost Torch scostforthenewpatentis 3 000 The 30 000R Dcostisexpensedasincurred CopyrightsAformofprotectiongivenbylawtoauthorsofliterary musical artistic andsimilarworks Copyrightownershaveexclusiverightstoprint reprint copy sellordistribute performandrecordthework Generally thelegallifeofacopyrightisthelifeoftheauthorplus70years TrademarksAsymbol design orlogoassociatedwithabusiness Ifinternallydeveloped trademarkshavenorecordedassetcost Ifpurchased atrademarkisrecordedatcost RegisteredwithU S PatentOfficeandrenewableindefinitelyin10 yearperiods IntangibleAssets Acontractualarrangementwherethefranchisorgrantsthefranchiseeexclusiverightstousethefranchisor strademarkwithinacertainareaforaspecifiedperiodoftime Goodwill Franchise IntangibleAssets EddyCompanypaid 1 000 000topurchaseallofJamesCompany sassetsandassumedJamesCompany sliabilitiesof 200 000 JamesCompany sassetswereappraisedatafairvalueof 900 000 WhatamountofgoodwillshouldEddycompanyrecordasaresultofthepurchase Goodwill Severalassetsareacquiredforasinglepricethatmaybelowerthanthesumoftheindividualassetfairvalues Lump SumPurchases Asset2 Asset1 Asset3 Allocationofthelump sumpriceisbasedonrelativefairvaluesoftheindividualassets OnMay13 wepurchaselandandbuildingfor 200 000cash Theappraisedvalueofthebuildingis 162 500 andthelandisappraisedat 87 500 Howmuchofthe 200 000purchasepricewillbeallocatedtothebuildingaccount Lump SumPurchases May13 Land 70 000Building 130 000Cash 200 000Torecordlump sumpurchaseoflandandbuilding NoncashAcquisitions IssuanceofequitysecuritiesDeferredpaymentsDonatedAssetsExchanges Theassetacquiredisrecordedatthefairvalueoftheconsiderationgivenorthefairvalueoftheassetacquired whicheverismoreclearlyevident DeferredPayments Notepayable OnJanuary2 2011 MidwesternCorporationpurchasedequipmentbysigninganoninterest bearingnoterequiring 50 000tobepaidonDecember31 2012 Theprevailingmarketrateofinterestonnotesofthisnatureis10 PreparetherequiredjournalentriesforMidwesternonJanuary2 2011 December31 2011 year end andDecember31 2012 year end Wedonotknowthecashequivalentprice sowemustusethepresentvalueofthefuturecashpayment DeferredPayments DeferredPayments January2 2011 Equipment 41 323Discountonnotepayable 8 677Notepayable 50 000Torecordequipmentacquisition December31 2011 Interestexpense 10 of 41 323 4 132Discountonnotepayable 4 132Torecordinterestexpense December31 2012 Interestexpense 10 of 41 323 4 132 4 545Discountonnotepayable 4 545Torecordinterestexpense December31 2012Notepayable 50 000Cash 50 000Torecordpaymentofnote IssuanceofEquitySecuritiesAssetacquiredisrecordedatthefairvalueoftheassetorthemarketvalueofthesecurities whicheverismoreclearlyevident Ifthesecuritiesareactivelytraded marketvaluecanbeeasilydetermined Ifthesecuritiesgivenarenotactivelytraded thefairvalueoftheassetreceived asdeterminedbyappraisal maybemoreclearlyevidentthanthefairvalueofthesecurities DonatedAssetsOnoccasion companiesacquireassetsthroughdonation ThereceivingcompanyisrequiredtorecordThedonatedassetatfairvalue Revenueequaltothefairvalueofthedonatedasset Fixed AssetTurnoverRatio Thisratiomeasureshoweffectivelyacompanymanagesitsfixedassetstogeneraterevenue Gymboreegenerates 0 44moreinsalesdollarsforeachdollarinvestedinfixedassets Dispositions Updatedepreciationtodateofdisposal Removeoriginalcostofassetandaccumulateddepreciationfromthebooks Thedifferencebetweenbookvalueoftheassetandtheamountreceivedisrecordedasagainorloss OnJune30 2011 MeLo Inc soldequipmentfor 6 350cash TheequipmentwaspurchasedonJanuary1 2006atacostof 15 000 Theequipmentwasdepreciatedusingthestraight linemethodoveranestimatedten yearlifewithzerosalvagevalue MeLolastrecordeddepreciationontheequipmentonDecember31 2010 itsyear end Preparethejournalentriesnecessarytorecordthedispositionofthisequipment Updatedepreciationtodateofsale Dispositions June30 2011 Depreciationexpense 15 000 10years 750Accumulateddepreciation 750Toupdatedepreciationtodateofsale Exchanges GeneralValuationPrinciple GVP Costofassetacquiredis fairvalueofassetgivenuppluscashpaidorminuscashreceivedorfairvalueofassetacquired ifitismoreclearlyevident Intheexchangeofassetsfairvalueisusedexceptinraresituationsinwhichthefairvaluecannotbedeterminedortheexchangelackscommercialsubstance Whenfairvaluecannotbedeterminedortheexchangelackscommercialsubstance theasset s acquiredarevaluedatthebookvalueoftheasset s givenup plus orminus anycashexchanged Nogainisrecognized FairValueNotDeterminable Matrix Inc exchangedusedequipmentfornewerequipment Duetothenatureoftheassetsexchanged Matrixcouldnotdeterminethefairvalueoftheassetgivenuporreceived Theassetgivenuporiginallycost 600 000 andhadanaccumulateddepreciationbalanceof 400 000atthetimeoftheexchange Matrixexchangedtheassetandpaid 100 000cash Let srecordthisunusualtransaction Matrix Inc Thejournalentrybelowshowstheproperrecordingoftheexchange FairValueNotDeterminable Equipment 200 000 100 000 300 000Accumulateddepreciation 400 000Equipment 600 000Cash 100 000Torecordequipmentacquiredinexchange ExchangeLacksCommercialSubstance Whenexchangesarerecordedatfairvalue anygainorlossisrecognizedforthedifferencebetweenthefairvalueandbookvalueoftheasset s given up Toprecludethepossibilityofcompaniesengaginginexchangesofappreciatedassetssolelytobeabletorecognizegains fairvaluecanonlybeusedinlegitimateexchangesthathavecommercialsubstance Anonmonetaryexchangeisconsideredtohavecommercialsubstanceifthecompany expectsachangeinfuturecashflowsasaresultoftheexchange andthatexpectedchangeissignificantrelativetothefairvalueoftheassetsexchanged Exchanges Matrix Inc exchangednewequipmentand 10 000cashforequipmentownedbyFloat Inc BelowisinformationabouttheassetexchangedbyMatrix Recordthetransactionassumingtheexchangehascommercialsubstance Gain FairValue BookValueGain 205 000 200 000 5 000 Exchanges Recordthesametransactionassumingtheexchangelackscommercialsubstance Equipment 215 000Accumulateddepreciation 300 000Equipment 500 000Cash 10 000Gainonexchange 5 000Torecordtheexchangeofequipment Equipment 210 000Accumulateddepreciation 300 000Equipment 500 000Cash 10 000Torecordtheexchangeofequipment Self ConstructedAssets Whenself constructinganasset twoaccountingissuesmustbeaddressed overheadallocationtotheself constructedasset incrementaloverheadonlyfull costapproachpropertreatmentofinterestincurredduringconstruction Interestthatcouldhavebeenavoidediftheassetwerenotconstructedandthemoneyusedtoretiredebt Assetconstructed Foracompany sownuse Asadiscreteprojectforsaleorlease Undercertainconditions interestincurredonqualifyingassetsiscapitalized Capitalizationbeginswhen constructionbeginsinterestisincurred andqualifyingexpensesareincurred Capitalizationendswhen theassetissubstantiallycompleteandreadyforitsintendeduse orwheninterestcostsnolongerarebeingincurred InterestCapitalization InterestiscapitalizedbasedonAverageAccumulatedExpenditures AAE Qualifyingexpenditures constructionlabor material andoverhead weightedforthenumberofmonthsoutstandingduringthecurrentaccountingperiod Ifthequalifyingassetisfinancedthroughaspecificnewborrowing usethespecificrateofthenewborrowingasthecapitalizationrate Ifthereisnospecificnewborrowing andthecompanyhasotherdebt usetheweightedaveragecostofotherdebtasthecapitalizationrate InterestCapitalization Welling Inc isconstructingabuildingforitsownuse ConstructionactivitiesstartedonMay1andhavecontinuedthroughDec 31 Wellingmadethefollowingqualifyingexpenditures May1 125 000 July31 160 000 Oct 1 200 000 andDec 1 300 000 Wellingborrowed 1 000 000onMay1 fromBub sBankfor10yearsat10percenttofinancetheconstruction Theloanisrelatedtotheconstructionprojectandthecompanyusesthespecificinterestmethodtocomputetheamountofinteresttocapitalize AverageAccumulatedExpenditures InterestCapitalization Sincethe 1 000 000ofspecificborrowingissufficienttocoverthe 337 500ofaverageaccumulatedexpendituresfortheyear usethespecificborrowingrateof10percenttodeterminetheamountofinteresttocapitalize Interest AAE SpecificBorrowingRate TimeInterest 337 500 10 8 12 22 500 Theloan initiatedonMay1 isoutstandingfor8monthsoftheyear InterestCapitalization IfWellinghadnotborrowedspecificallyforthisconstructionproject itwouldhaveusedtheweighted averageinterestmethod Theweightedaverageinterestrateonotherdebtwouldhavebeenusedtocomputetheamountofinteresttocapitalize Forexample iftheweighted averageinterestrateonotherdebtis12percent theamountofinterestcapitalizedwouldbe Interest AAE Weighted averageRate TimeInterest 337 500 12 8 12 27 000 InterestCapitalization Ifspecificnewborrowinghadbeeninsufficienttocovertheaverageaccumulatedexpenditures Specificnewborrowing AAE Capitalizethisportionusingthe10percentspecificborrowingrate Otherdebt Capitalizethisportionusingthe12percentweighted averagecostofdebt InterestCapitalization ResearchandDevelopment R D ResearchPlannedsearchorcriticalinvestigationaimedatdiscoveryofnewknowledge DevelopmentThetranslationofresearchfindingsorotherknowledgeintoaplanordesign MostR Dcostsareexpensedasincurred Mustbedisclosedifmaterial R Dcostsincurredundercontractforothercompaniesarecapitalizedasinventoryandcarriedforwardintofutureyears CostsofassetspurchasedforR Dpurposesareexpensedintheperiodunlesstheyhavealternativefutureuses StartofR DActivity TechnologicalFeasibility DateofProductRelease SaleofProduct CostsExpensedasR D CostsCapitalized OperatingCosts AllcostsincurredtoestablishthetechnologicalfeasibilityofacomputersoftwareproductaretreatedasR Dandexpensedasincurred Costsincurredaftertechnologicalfeasibilityisestablishedandbeforethesoftwareisavailableforreleasetocustomersarecapitalizedasanintangibleasset SoftwareDevelopmentCosts SoftwareDevelopmentCosts Amortizationofcapitalizedcomputersoftwarecostsstartswhentheproductbeginstobemarketed Twomethods thepercentageofrevenuemethodandthestraight linemethod arecomparedandthemethodproducingthelargestamountofamortizationisused U S GAAPvs IFRS Exceptf