New f4 - working capital, inventories, fixed assets, depreciation Flashcards Preview

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Flashcards in New f4 - working capital, inventories, fixed assets, depreciation Deck (6)
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1
Q

Fixed Assets _Valuation_US GAAP

A
  1. historical cost = carrying amount
  2. donated fixed asset - at fair market value on that day
    Fixed Asset (FMV) xxxx
    Gain on nonreciprocal transfer xxx
2
Q

Fixed asset_valuation_ifrs

two models

  1. cost model
  2. revaluation model
A
  1. cost model (=US gaap, historical cost)
    carrying amount = historical cost - accumulated depr. - impairment
  2. Revaluation model (IFRS ONLY)
    carrying amount = fair value at revaluation day - subsequent acc depr. - subsequent impairment

revaluation loss -> I/S, unless revaluation gain on OCI (那就可以抵消OCI里面的Gain)

revaluation gain -> OCI

impairment -> just like revaluation loss, 1st - reduce gain in OCI, 2nd hit I/S.

PUFE R- revaluation surplus (IFRS only)

3
Q

Fixed Asset_cost of equipment

A

items to include -

  1. invoice price
  2. less discounts
  3. add freight-in (inventory)
  4. add installation charges (to put into working condition)
  5. add sales and federal excise taxes
  6. possible addition of construction period interests

Capitalize or expenses?
1.
Improvement/replacement -> increase life -> reduce acc. depr

Accumulated depreciation xxx
cash for the improvement/replacement xxx

Improvement/replacement ->useful -> capitalize

  1. repair
    Ordinary repair -> expense

extraordinary repair (treat as improvement/replacement)
life -> accumulated depreciation 下降
useful -> capitalized

4
Q

Fixed Asset_cost of land

A
what is included?
1. purchase price
2. broker commissions
3. title and recording fees
4. legal fees
5. draining of swamps
6. cleaning of brush and trees
7. site development (make a "pad")
8. exisiting obligations 
9. costs of razing down the old buildings
10 Less: sales of existing buildings 卖废品
land improvement (depreciate) 
Fence, water systems, sidewalks, paving, landscaping, lighting

interest exp. during the construction? -> capitalized 新卡

5
Q

Fixed Asset_cost of building

A
  1. purchase price
  2. all repair charges neglected by the previous owner (deferred maintenance)
  3. alternations and improvement
  4. architecht fee
  5. interests during construction
6
Q

Fixed asset_investment property (IFRS only)

A

property under finance lease to earn rentals or for capital appreciations = investment property

  1. what to include? -> purchase cost + direct expense to purchase (Legal services, professional fees, property transfer taxes)
  2. capitalize -> costs to subsequently added to the property
    capitalize -> replacement
    capitalize -> service

expense -> day-to-day servicing, repairs and maintenance

  1. valuation models
    cost model
    historical cost - accumulated depreciation - impairment

fair value model
reported to fair value
gain or loss -> 都去 I/S!!! 这点很重要 IFRS investment property的revaluation g/l 不去OCI