《会计英语第四版》课件单元4.ppt

上传人(卖家):momomo 文档编号:5059224 上传时间:2023-02-07 格式:PPT 页数:25 大小:621.50KB
下载 相关 举报
《会计英语第四版》课件单元4.ppt_第1页
第1页 / 共25页
《会计英语第四版》课件单元4.ppt_第2页
第2页 / 共25页
《会计英语第四版》课件单元4.ppt_第3页
第3页 / 共25页
《会计英语第四版》课件单元4.ppt_第4页
第4页 / 共25页
《会计英语第四版》课件单元4.ppt_第5页
第5页 / 共25页
点击查看更多>>
资源描述

1、Lesson Four:Long Term Assets Aims:1.To explain the importance of long term assets.2.To discuss the fixed assets and the accounting treatment.3.To discuss the intangible assets and the accounting treatment.4.To apply the straight-line and accelerate methods of depreciation.5.To apply the units-of-pro

2、duction depreciation method.6.To apply sum-of-the-years-digits method.7.To explain the nature of intangible assets.8.To understand the process of amortization.4.1Introduction to Long Term Assets Long term assets are defined as the recourses a business possesses and uses to bring forth or yield reven

3、ue and can be divided into two categories:plant assets and intangible assets.4.2The Cost of Long Term Assets The cost of long term assets is recognized as an expense in the accounting periods in which they are used.So,if a computer is bought and expected to have an economic life of 5 years,then the

4、cost of the computer will be allocation over this five-year period.4.3Tangible Assets Tangible assets are those which one can touch.Tangible assets in their term are divided into three categories:Property,plant,and equipment;Natural recourses and Land.4.4Intangible Assets Intangible assets may be re

5、presented by a piece of paper,a document,etc.,but the real value of such assets is the rights and privileges extended to its owners.Examples of intangible assets can be patents,franchise,goodwill,etc.4.5Historical Cost of Long Term Assets All assets are recorded at their historical cost.Historical c

6、ost usually includes the purchase price,plus whatever additional costs necessary to get the asset and to prepare it for intended use.2Additional costs(costs besides the purchase price)may be transportation costs,insurance while delivering the asset,etc.4.7Depreciation When an asset is come to have,i

7、ts cost is not expensed at once at the moment of obtaining it.Since the asset is usually used for long period of time,its cost is allocated over the useful life.The straight-line methods and the accelerated depreciation methods.4.8Straight-line Depreciation Provided that the revenue will remain the

8、same in each year of the assets use,it is reasonable to employ straight-line depreciation method.4.9The Effects on Financial Statements of the Recognizing of Depreciation Expense The recognition of depreciation expense affects the balance sheet and the income statement,but does not make any changes

9、to The Cash Flow Statements.4.10The Retirement and Removal of the Computers The final stage in the asset useful life is its retirement and removal from the companys records.4.11The Effects on Financial Statements under Straight-line Depreciation MethodIncome Statement2012 2013 2014 2015Revenue$18 00

10、0$18 000$18 000$18 000Depreciation Expense(10 000)(10 000)(10 000)(10 000)Operating Income$8 000$8 000$8 000$8 000Gain0002 000Net Income$8 000$8 000$8 000$10 000Balance SheetAssetsCash$22 000$40 000$58 000$84 000Computer$46 000$46 000$46 0000Accumulated Depreciation(10 000)(20 000)(30 000)0Total Ass

11、ets$58 000$66 000$74 000$84 000EquityContributed Capital$50 000$50 000$50 000$50 000Retained Earnings8 00016 00024 000 34 000Total Equity$58 000$66 000$74 000$84 000Statement of Cash FlowsOperating ActivitiesInflow from Clients$18 000$18 000$18 000$18 000Investing ActivitiesOutflow to Purchase Compu

12、ters(46 000)$0$0$0Inflow from Disposal of Computers0008 000Financing ActivitiesInflow from Capital Acquisition$50 000000Net Change in Cash$22 000$18 000$18 000$26 000Beginning Cash Balance$0$22 000$40 000$58 000Ending Balance$22 000$40 000$58 000$84 0004.13Double-declining Balance Depreciation Doubl

13、e-declining method is created to reflect recognition of lager amounts of depreciation expense in the earlier stages of an assets life and respectively lower levels of expense as the asset ages.The method is sometimes called accelerated depreciation method.(1)Figure out the straight-line rate.It is a

14、chieved by dividing 100%by the number of years the asset is expected to be in use.(2)Calculate the double-declining balance rate by multiplying already determined straight-line rate by two.(3)Apply the double-declining balance rate to the book(carrying)value of the asset.4.14An Example of Double-dec

15、lining Balance Depreciation The scheme below will show the computations of depreciation expense under double-declining balance method:YearBook Value atBeginning of PeriodDouble theStraight-line Rate=Annual Depreciation ExpenseReal AnnualDepreciation Expense2012(46 000-0)50%=$23 000$23 0002013(46 000

16、-23 000)50%=$11 500$11 5002014(46 000-34 500)50%=$5 750$5 5002015(46 000-40 000)50%=$3 00004.15The Effects on Financial Statements under Double-declining Balance Depreciation Method Let us presume that the revenue also changes during the 4-year useful life and amounts to$31 000 in 2012,$19 500 in 20

17、13,$13 500 in 2014,and$8 000 in 2015.Financial statements are presented below.Income Statement2012201320142015Revenue$31 000$19 500$13 500$8 000Depreciation Expense(23 000)(11 500)(5 500)(0)Operating Income$8 000$8 000$8 000$8 000Gain0002 000Net Income$8 000$8 000$8 000$10 000Balance SheetAssetsCash

18、$35 000$54 500$68 000$84 000Computer$46 000$46 000$46 0000Accumulated Depreciation(23 000)(34 500)(40 000)0Total Assets$58 000$66 000$74 000$84 000EquityContributed Capital$50 000$50 000$50 000$50 000Retained Earnings8 00016 00024 000 34 000Total Equity$58 000$66 000$74 000$84 000Statement of Cash F

19、lowsOperating ActivitiesInflow from Clients$31 000$19 500$13 500$8 000Investing ActivitiesOutflow to Purchase Computers(46 000)$0$0$0Inflow from Disposal of Computers0008 000Financing ActivitiesInflow from Capital Acquisition$50 000000Net Change in Cash$35 000$19 500$13 500$16 000Beginning Cash Bala

20、nce$0$35 000$54 500$68 000Ending Balance$35 000$54 500$68 000$84 0004.16Units-of-Production Depreciation This method was designed to better match expenses with revenues when the former changes from one year to another greatly.4.18Sum-of-the-Years-Digits Depreciation This method is an optional one fo

21、r double-declining method,since it also assumes that an asset is used more extensively during its first years of operations.In this method a very important place is devoted to the number of years an asset is expected to be in use.4.21When a Revision Takes Place Sometimes it happens that a revision o

22、f salvage value,useful life,or total production take place.The new information is taken into calculations of the present and future depreciation expenses.4.24Natural Resources and Depletion Natural resources are recorded in the books at their cost of acquisition.The process of expense recognition fo

23、r using natural resources is called depletion.The units-of-production is the most common method used to allocation the cost of natural resources.4.25The Accounting Treatment for Intangible Assets Intangible assets provide their owners with rights,privileges,etc.When acquiring such assets,their cost is capitalized in assets accounts at historical cost and is expensed over their useful life.The expense recognition process for intangible assets is called amortization.4.27Goodwill Goodwill is the added value of a business that is due to favorable factors such as reputation,location,etc.

展开阅读全文
相关资源
猜你喜欢
相关搜索
资源标签

当前位置:首页 > 大学
版权提示 | 免责声明

1,本文(《会计英语第四版》课件单元4.ppt)为本站会员(momomo)主动上传,163文库仅提供信息存储空间,仅对用户上传内容的表现方式做保护处理,对上载内容本身不做任何修改或编辑。
2,用户下载本文档,所消耗的文币(积分)将全额增加到上传者的账号。
3, 若此文所含内容侵犯了您的版权或隐私,请立即通知163文库(发送邮件至3464097650@qq.com或直接QQ联系客服),我们立即给予删除!


侵权处理QQ:3464097650--上传资料QQ:3464097650

【声明】本站为“文档C2C交易模式”,即用户上传的文档直接卖给(下载)用户,本站只是网络空间服务平台,本站所有原创文档下载所得归上传人所有,如您发现上传作品侵犯了您的版权,请立刻联系我们并提供证据,我们将在3个工作日内予以改正。


163文库-Www.163Wenku.Com |网站地图|