Costing issues in fixed assets accounting. Methodologies for cost accumulation, classification, and grouping of fixed assets into various classes and including the cost figure in the company books
International Accounting Standard No. 16International Accounting .pdfanokhilalmobile
International Accounting Standard No. 16:
International Accounting Standard No. 16 provides that property, plant and equipment can be
accounted for under the cost method or the revaluation method.
Under the Cost model of accounting the property, plant and equipment, an item of property, plant
and equipment should initially be recorded at cost. Cost includes all costs necessary to bring the
asset to working condition for its intended use. This would include not only its original purchase
price but also costs of site preparation, delivery and handling, installation, related professional
fees for architects and engineers, and the estimated cost of dismantling and removing the asset
and restoring the site.If payment for an item of property, plant, and equipment is deferred,
interest at a market rate must be recognised or imputed.
If an asset is acquired in exchange for another asset (whether similar or dissimilar in nature), the
cost will be measured at the fair value unless (a) the exchange transaction lacks commercial
substance or (b) the fair value of neither the asset received nor the asset given up is reliably
measurable. If the acquired item is not measured at fair value, its cost is measured at the carrying
amount of the asset given up.
Under the revaluation model, revaluations should be carried out regularly, so that the carrying
amount of an asset does not differ materially from its fair value at the balance sheet date.
If an item is revalued, the entire class of assets to which that asset belongs should be revalued.
If a revaluation results in an increase in value, it should be credited to other comprehensive
income and accumulated in equity under the heading \"revaluation surplus\" unless it represents
the reversal of a revaluation decrease of the same asset previously recognised as an expense, in
which case it should be recognised in profit or loss.
A decrease arising as a result of a revaluation should be recognised as an expense to the extent
that it exceeds any amount previously credited to the revaluation surplus relating to the same
asset.
When a revalued asset is disposed of, any revaluation surplus may be transferred directly to
retained earnings, or it may be left in equity under the heading revaluation surplus. The transfer
to retained earnings should not be made through profit or loss.
Solution
International Accounting Standard No. 16:
International Accounting Standard No. 16 provides that property, plant and equipment can be
accounted for under the cost method or the revaluation method.
Under the Cost model of accounting the property, plant and equipment, an item of property, plant
and equipment should initially be recorded at cost. Cost includes all costs necessary to bring the
asset to working condition for its intended use. This would include not only its original purchase
price but also costs of site preparation, delivery and handling, installation, related professional
fees for architects and engineers, and the estimat.
A presentation on Property, Plant & Equipment (PPE)-IAS 16, Prepared by a few students of Dept. of Accounting & Info. Systems, Jahangirnagar University, Savar, Dhaka
If any of the above conditions is not satisfied, PPE cannot be recorded.
Above recognition, the principle is to be applied to the ‘Initial’ recognition of PPE and
‘Subsequent’ recognition.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
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Similar to ACCOUNTING FOR FIXED ASSETS -COST, ACCUMULATION.ppt
International Accounting Standard No. 16International Accounting .pdfanokhilalmobile
International Accounting Standard No. 16:
International Accounting Standard No. 16 provides that property, plant and equipment can be
accounted for under the cost method or the revaluation method.
Under the Cost model of accounting the property, plant and equipment, an item of property, plant
and equipment should initially be recorded at cost. Cost includes all costs necessary to bring the
asset to working condition for its intended use. This would include not only its original purchase
price but also costs of site preparation, delivery and handling, installation, related professional
fees for architects and engineers, and the estimated cost of dismantling and removing the asset
and restoring the site.If payment for an item of property, plant, and equipment is deferred,
interest at a market rate must be recognised or imputed.
If an asset is acquired in exchange for another asset (whether similar or dissimilar in nature), the
cost will be measured at the fair value unless (a) the exchange transaction lacks commercial
substance or (b) the fair value of neither the asset received nor the asset given up is reliably
measurable. If the acquired item is not measured at fair value, its cost is measured at the carrying
amount of the asset given up.
Under the revaluation model, revaluations should be carried out regularly, so that the carrying
amount of an asset does not differ materially from its fair value at the balance sheet date.
If an item is revalued, the entire class of assets to which that asset belongs should be revalued.
If a revaluation results in an increase in value, it should be credited to other comprehensive
income and accumulated in equity under the heading \"revaluation surplus\" unless it represents
the reversal of a revaluation decrease of the same asset previously recognised as an expense, in
which case it should be recognised in profit or loss.
A decrease arising as a result of a revaluation should be recognised as an expense to the extent
that it exceeds any amount previously credited to the revaluation surplus relating to the same
asset.
When a revalued asset is disposed of, any revaluation surplus may be transferred directly to
retained earnings, or it may be left in equity under the heading revaluation surplus. The transfer
to retained earnings should not be made through profit or loss.
Solution
International Accounting Standard No. 16:
International Accounting Standard No. 16 provides that property, plant and equipment can be
accounted for under the cost method or the revaluation method.
Under the Cost model of accounting the property, plant and equipment, an item of property, plant
and equipment should initially be recorded at cost. Cost includes all costs necessary to bring the
asset to working condition for its intended use. This would include not only its original purchase
price but also costs of site preparation, delivery and handling, installation, related professional
fees for architects and engineers, and the estimat.
A presentation on Property, Plant & Equipment (PPE)-IAS 16, Prepared by a few students of Dept. of Accounting & Info. Systems, Jahangirnagar University, Savar, Dhaka
If any of the above conditions is not satisfied, PPE cannot be recorded.
Above recognition, the principle is to be applied to the ‘Initial’ recognition of PPE and
‘Subsequent’ recognition.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
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Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
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what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
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The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
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The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
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3. INTRODUCTION
Fixed
Assets
Accounting—
Overview
Fixed assets
are resources
which an
organization
acquired to use
in the
generation of
income over a
period known
as the useful
life span
Every fixed
asset has a
limited useful
economic life
during which it
can be
profitably used
in the operation
of the
organization.
Fixed
Assets
Accounting
6. COST ACCUMULATION
FixedAsset
Cost
Ascertainment
Brokers or
Estate agents
commission
Legal fees for
examining,
recording, and
securing title
Cost of
survey
Cost of non-
recurring levies
on the land if
payable by the
purchaser.
Original
purchase
price
In the case
of Land
8. CONTD
Costs of building
permits
Payment of
development levies
on building at the
date of purchase if
payable by
purchaser
Professional
fees for design,
supervision and
management of
the construction
Costs of
temporary
buildings during
the construction
period less
disposal proceeds.
Additional
costs….
FixedAsset
Cost
Ascertainment—
OtherElementsof
Costs
9. PLANT AND EQUIPMENT
Original purchase prices or costs of construction.
Freight, import duties and handling charges.
In-transit insurance.
Taxes and levies
Cost of preparation of foundations, insulations,
protective and other special devices.
oCommissioning including testing and running-in costs
in preparation for use.
oIf the item is a second-hand one, the cost of
refurbishing it for the intended use.
FixedAsset
Cost
Ascertainment—
OtherElementsof
Costs
10. Cost of self – constructed assts
Materials
Labour and overheads that are directly
attributable to the construction less any
trade discounts, rebates or internal
profits.
Interest costs which are attributable to
the period of constructing the item.
FixedAsset
Cost
Ascertainment—
self-constructed
assets
11. Revaluation of assets
Sometimes, financial statements that are
otherwise prepared on historical cost basis
include part or all of Property, Plant and
Equipment at valuation in substitution for
historical cost and depreciation is calculated
accordingly.
A commonly accepted method of restating
property, plant and equipment is by appraisal,
normally undertaken by professionally qualified
valuers. Other methods sometimes used are
indexation and reference to current prices.
FixedAsset
Cost
Ascertainment—
somefinancial
treatment
12. DISOSALS OF ASSETS
Fixed assets which have retired from active
use or held for disposal are usually stated at
the lower of their net book values or net
realisable values.
When a fixed asset is disposed of or retired,
it is eliminated from property, plant and
equipment; and any, gain or loss arising
therefrom, is transferred to income or
retained profit.
FixedAsset
Cost
Ascertainment—
somefinancial
treatment
13. CONTD.
Upon disposal of a previously revalued
assets, the difference between the net
proceeds from disposal and the net book
value is normally charged or credited to
income. Any related valuation surplus is
transferred to income or retained profit.
Where the usefulness of an item or group of
items of assets is impaired, in which case,
the recoverable amounts is less than the net
book value, the net book value is usually
reduced to recoverable amount and the
difference is charged to income immediately.
FixedAsset
Cost
Ascertainment—
self-constructed
assets
14. At the date of acquisition, items of property,
plant and equipment should be recorded at
their initial cost including directly
attributable expenses incurred in order to
bring them into operation for their intended
use.
The cost of self –constructed item of
property, plant and equipment should
comprise those costs that relate directly and
those expenses attributable to the
construction of the item.
Costs of inefficiencies in the construction of
the item should not form part of its cost.
FixedAsset
Cost
Ascertainment—
somefinancial
treatment
15. CONTD.
On revaluation of property,
plant and equipment, an
increase in the net book value
should be credited to a
revaluation surplus account.
A decrease in the net book
value should be reduced by the
amount of any existing
revaluation surplus on the same
item before it is charged to
income.
FixedAsset
Cost
Ascertainment—
somefinancial
treatment
16. DISCLOSURE :
The following disclosures should be made:
The bases for determining the book value of
property, pant and equipment.
When more than one basis has been used,
book value determined under each basis in
each category of property, plant and
equipment.
Where property, plant and equipment are
stated at revalued amounts, the methods
adopted to compute these amounts should be
disclosed, including the policy with regard to
the frequency of revaluations, the nature of
indices used and whether external valuers are
involved.
FixedAsset
Cost
Ascertainment—
somefinancial
treatment
17. CONTD.
Movements in each category of property,
plant and equipment (i.e. additions and
disposals) during the year.
Contingent capital gains tax and deferred
income tax liabilities attributable to any
revaluation surplus incorporated in or referred
to in financial statements
FixedAsset
Cost
Ascertainment—
somefinancial
treatment