Chapter 13
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1. An enterprise should determine whether there are signs of impairment of assets on the balance sheet date.
2. If there are signs of impairment of the asset, an impairment test should be conducted to estimate the recoverable amount of the asset.
The existence of signs of impairment of an asset is a necessary prerequisite for whether the asset needs to be tested for impairment, but the following assets are excepted:
① Goodwill and intangible assets with indefinite useful lives
Goodwill and intangible assets with indefinite useful lives (not amortized) formed by business combinations usually have great uncertainty in their value. Regardless of whether there is any sign of impairment, the company should conduct an impairment test at the end of each year.
② Intangible assets that have not yet reached a usable state should also be tested for impairment at the end of each year because their value is usually highly uncertain.
3. Enterprises should follow the principle of materiality when interpreting signs of asset impairment to determine whether it is necessary to estimate the recoverable amount of assets. According to this principle, the recoverable amount of enterprise assets does not need to be estimated if the following circumstances exist:
(1) If the calculation results of previous reporting periods show that the recoverable amount of an asset is much higher than its book value, and no transactions or events have subsequently occurred to eliminate this difference, the enterprise does not need to re-estimate the asset on the balance sheet date. Recoverable amount
(2) Calculations and analysis in previous reporting periods show that the recoverable amount of assets is insensitive to one or more signs of impairment listed in the asset impairment standards (the occurrence of signs of impairment has no impact on the enterprise). If these signs of impairment occur again during the reporting period, the company does not need to re-estimate the recoverable amount of the asset on the balance sheet date due to the emergence of the above signs of impairment. In the room, Hu Shouyu and his wife disappeared with a burst of space fluctuations. , and then they were replaced by two middle-aged men in black suits, and a little boy with a blank face behind them, who was looking at a few people curiously.
The little boy is naturally Hu Xian, the son of Hu Shouyu and his wife. Once the asset group is determined, it should be consistent in each accounting period and cannot be changed at will.
If the asset composition really needs to be changed due to corporate reorganization, change of asset use, etc., the company can make the change, but the company management should prove that the change is reasonable and make a corresponding explanation in the notes.
2. Impairment test of asset group
If the recoverable amount of the asset group is lower than its book value, it means that the asset group has suffered an impairment loss, which should be recognized in a different way. At this time, it looks much more lively, but the figure is a bit flickering. It seems to be For B and C, although there is an active market for the products they produce, the cash inflows of B and C depend on the distribution of products between the two factories, and the management of production capacity and sales by B and C are unified, therefore, it is difficult for B and C to generate cash flows independently, and therefore it is difficult to estimate their recoverable amounts individually.
Therefore, only the combination of three factories A, B, and C (i.e., enterprise A as a whole) is likely to be the smallest combination of assets that can be identified and can basically independently generate cash inflows. Therefore, A, B , C’s portfolio is identified as an asset group and is missing.
The two companies that are closer to each other produce a single product and only have three factories: A, B, and C. The three factories are located in three different countries, and the three countries are located in three different continents. Factory A produces a component and is assembled by factory B or C. The final product is sold by B or C around the world. For example, the products of factory B can be sold locally or in the continent where C is located (if the product is shipped from B If it is more convenient to go to continent C)
The combined production capacity of B and C is still surplus and has not been fully utilized. The degree of utilization of B and C's production capacity depends on Company A's allocation of sales products between the two places.
The asset groups related to A, B, and C are identified below:
① Assuming that there is an active market for the products (i.e. components) produced by A, A can probably be recognized as a separate asset group because although the products it produces are mainly used in B or C, because there is an active market for this product, can generate independent cash flows and, therefore, should generally be identified as a separate asset group. When determining the present value of its future cash flows, the company should adjust its financial budget or forecast and base the prediction of future cash flows on the best estimate of the future price of the product produced by A under the premise of arm's length transactions, rather than its internal transfer. price
For B and C, even if there is an active market for the products assembled by B and C, since the cash inflows of B and C depend on the distribution of the products between the two places, the future cash inflows of B and C cannot be determined independently, so , B and C together are an identifiable asset combination that can generate cash inflows that are basically independent of other assets or asset groups. B and C should be recognized as an asset group. When determining the present value of the future cash flows of the asset group, the company should also adjust its financial budget or forecast and base the prediction of future cash flows on the best estimate of the future price of the product purchased from A under the premise of arm's length transactions. , but the man in the middle couldn't see his face clearly for some reason. Although he was only one or two meters away, his face was always blurry.
"These two are the envoys from the underworld. There is a more popular saying in the human world, called black and white impermanence." As if knowing Su Jianxia's doubts, Wei Ziqi quickly explained.
Su Jianxia nodded, "I thought black and white were both black and white."
"Times are changing, and there must always be unified uniforms." Wei Ziqi was stunned for a moment, but still gave a seemingly reasonable explanation, "Similar to the system."
Su Jianxia nodded, (2) Special circumstances when estimating the recoverable amount of assets (no need to estimate at the same time)
1. As long as one of the net amount of the asset's fair value minus disposal costs and the present value of the asset's expected future cash flows exceeds the asset's book value, it means that the asset has not been impaired and there is no need to estimate the other amount.
2. There is no conclusive evidence or reason to show that the present value of the estimated future cash flows of the asset is significantly higher than its fair value minus the net amount of disposal expenses. The net amount of the asset's fair value minus the disposal expenses can be regarded as the asset's fair value. Amount recovered
3. If the net amount of an asset's fair value minus disposal costs cannot be reliably estimated, the present value of the asset's expected future cash flows should be used as its recoverable amount.
2. Estimation of the net amount of the asset’s fair value minus disposal costs
The fair value of an asset less costs to sell, usually reflecting the net cash proceeds that would be recovered if the asset were sold or disposed of.
1. The fair value of an asset refers to the price that can be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Fair value should be determined in the following order:
①The sales agreement price of assets in fair transactions (with agreement)
②The market price of the asset (no agreement, but there is a market)
③The transaction price that both parties to the transaction who are familiar with the situation are willing to provide for fair transactions
If an enterprise cannot reliably estimate the net amount of an asset's fair value minus disposal costs, it shall use the present value of the asset's estimated future cash flows as its recoverable amount.
2. Disposal costs refer to the incremental costs that can be directly attributed to asset disposal, including legal fees related to asset disposal, relevant taxes, transportation fees, and direct costs incurred in bringing the assets to a salable state. However, financial He expressed his understanding that expenses and income tax expenses were not included. He quickly turned his attention to the little boy staring at him, bent down and waved, "Hello, kid, your name is Hu Xian, right?"
Hu Xian blinked, "How do you know?"
"Because your parents told me." Su's asset impairment standards stipulate that if there are signs that an asset may be impaired, the company should estimate its recoverable amount based on the individual asset.
When it is difficult for an enterprise to estimate the recoverable amount of a single asset, it shall determine the recoverable amount of the asset group based on the asset group to which the asset belongs.
(1) Definition of asset group
An asset group refers to the smallest asset combination (consisting of multiple assets) that an enterprise can identify, and the cash inflows it generates should be basically independent of other assets or asset groups.
The asset group should consist of assets relevant to creating cash inflows
(2) Factors that should be considered in determining the asset group
1. The identification of an asset group shall be based on whether the main cash inflow generated by the asset group is independent of the cash inflows of other assets or asset groups. Therefore, whether an asset group can independently generate cash inflows is the most critical factor in identifying an asset group.
[Example] A mining company owns a coal mine, which is equipped with a special railway to support the production and transportation of the coal mine. Unless the railway is scrapped and sold, it is difficult to generate separate cash inflows from other assets related to the coal mine during its continued use. Therefore, it is difficult for the company to separately estimate the recoverable amount of the special railway. The special railway and other related assets of the coal mine must be combined. Together, they form an asset group to estimate the recoverable amount of the asset group
In the identification of asset groups, there is an active market for the products (or other outputs) produced by the combination of several assets of the enterprise, whether these products or other outputs are for external sale or only for internal use of the enterprise, it indicates that these products or other outputs are for internal use only. A combination of assets can independently create cash inflows. If other relevant conditions are met, the combination of these assets should be recognized as an asset group. Xia narrowed his eyes and smiled and said: "They asked my sister to take you home."
"Sister, do you know my parents?" Hu Xian couldn't help but take a few steps forward, his eyes full of surprise.
Su Jianxia reached out and took Hu Xian's hand, pulling him away from Black and White Wuchang. Black and White Wuchang looked at each other, as if they wanted to say something, but saw Wei Ziqi's eyes looking at the two of them. Then he immediately closed his mouth.
"Of course I know you, sister. Your father's name is Hu Shouyu and your mother's name is Cheng Lianzhi, right?"
"Yes, yes, sister, I haven't seen my parents for a long time. These two uncles said that I will never see them again. Is it true?" Hu Xian just became excited, and suddenly frowned, and felt a little worried. sad.
Su Jianxia rubbed Hu Xian's head, "Of course not. If you listen to my sister, my sister will take you back to your parents, okay?"
Hu Xian raised his head in surprise, nodded repeatedly and said, "Don't worry, sister, I will definitely listen to my sister. My mother said that I am the most obedient child."
"Of course sister believes in you." Su Jianxia stood up and stretched out his hand to pull Hu Xian behind him.
"Master Ziqi, this..." Seeing Su Jianxia's actions, Hei Bai Wuchang finally couldn't help but ask.
"I want to take away this child's soul. If the matter cannot be resolved in a few days, you can come over and take him to reincarnation." Wei Ziqi's voice was very soft, but it gave the two of them an unquestionable feeling.
The two hesitated for a while, then spoke carefully, "Master Ziqi, you also know the rules of our underworld. After death, everyone should be sent to the underworld to be reincarnated. Once this life is over, it is over. How can we send them back?" It makes sense... not to mention that in this child's life and death book, his life span will end today, this is his life."
"Don't say what I said a second time." Wei Ziqi's voice gradually turned cold, "Go back and tell your King of Hell, just say it was what I meant."
The two gritted their teeth and seemed to want to say something more. An invisible pressure suddenly hit them from above, forcing them to kneel on the ground unable to move.
It had only been more than a hundred years since the two of them entered the underworld. Although they had already seen the deeds of this gentleman in some ancient myths, biographies and historical records, it was only now that they faced him in person that they realized how terrifying this gentleman really was. Just their own pressure almost made the two of them breathless.
"I'm sorry, Lord Ziqi, we will report the truth truthfully when we get back." After squeezing these words out of his mouth with difficulty, the pressure on the two of them slowly dissipated.
Black and White Wuchang looked at each other, not daring to look at Wei Ziqi any longer. He lowered his head and bowed before disappearing from the spot.
After Su Jianxia watched Black and White Wuchang leave, she patted Hu Xian's shoulder and said, "How about you sleep well first? You can see your parents when you wake up."
Hu Xian blinked, a little confused, "Why do you have to wake up to see it?"
"Never mind that many are one, general principles for the recognition and measurement of asset impairment losses"
1. If the recoverable amount of an asset is lower than its book value, the book value of the asset should be written down to the recoverable amount. The amount written down is recognized as asset impairment loss and included in the current profit and loss, and the corresponding assets are accrued at the same time. Impairment provision
2. After the asset impairment loss is confirmed, the depreciation or amortization expenses of the impaired assets should be adjusted accordingly in future periods.
3. Once the asset impairment losses provided for in this chapter are recognized, they shall not be reversed in subsequent accounting periods. Asset impairment provisions made in previous periods cannot be transferred out until the assets are disposed of.
4. What can be reversed for impairments such as bad debt provisions, inventory depreciation provisions, impairment provisions for certain financial assets, deferred income tax assets, assets held for sale, contract acquisition costs, contract performance costs, etc., listen to my sister That's right, didn't you just say that you would listen to your sister? "
"I understand, sister." Hu Xian nodded, "But what should I do if I can't sleep now."
"It's okay, just close your eyes. 1 Since at the end of 2000, the ship's book value (impairment losses have not yet been confirmed) was 160 million yuan, and its recoverable amount was 109.65 million yuan, the book value was higher than its recoverable amount, so , impairment losses should be recognized and corresponding asset impairment provisions should be made.
Asset impairment loss that should be recognized = 16000-10965 = 5035 (10,000 yuan)
Borrow: Asset impairment loss 5035
Credit: Fixed asset impairment provision 5035
(4) Estimation of future foreign currency cash flows and their present values (first discounted, then converted)
① Estimate the future cash flow based on the settlement currency of the future cash flow generated by the asset, and calculate the present value of the asset according to the discount rate applicable to that currency (first discount it into the present value in foreign currency)
②Convert the present value of the foreign currency according to the spot exchange rate on the day when the present value of the asset's future cash flow is calculated, and then convert it into the present value of the asset's future cash flow expressed in the accounting functional currency (and then convert it into the accounting functional currency)
③Based on the present value, compare the net amount of the asset's fair value minus the disposal costs and the book value of the asset to determine whether and how much impairment loss needs to be recognized. For the purpose of asset impairment testing, calculate The discount rate used to determine the present value of an asset's future cash flows should be a pre-tax interest rate that reflects the current market time value of money and asset-specific risks.
2. The determination of the discount rate should first be based on the market interest rate of the asset. If the market interest rate for the asset is not available from the market, alternative rates can be used to estimate the discount rate
3. Enterprises should usually use a single discount rate when estimating the present value of future cash flows of assets. However, if the present value of an asset's future cash flows is sensitive to risk differences in different periods in the future or the term structure of interest rates, the company should adopt different discount rates in different periods in the future.
(3) Estimation of the present value of future cash flows of assets
On the basis of estimating the future cash flow and discount rate of the asset, the enterprise can determine the future cash flow of the asset after discounting the expected future cash flow of the asset according to the expected discount rate within the estimated service life of the asset. present value
[Example] XYZ Shipping Company conducted an impairment test on an ocean-going shipping vessel at the end of 2000. The ship has a book value of 160 million yuan and an estimated remaining useful life of 8 years.
It is difficult to determine the net amount of the ship's fair value minus disposal costs. Therefore, the company needs to determine the recoverable amount of the asset by calculating the present value of its future cash flows.
Assume that the company originally purchased the ship with long-term bank borrowing funds, and the annual interest rate of the loan is 15%. The company believes that 15% is the minimum necessary rate of return for the asset, and has taken into account the time value of money and specific risks related to the asset. Therefore, when calculating the present value of its future cash flows, use 15% as its discount rate (before tax)
The financial budget approved by the company's management shows that the company will update the ship's engine system in 2005. It is expected to incur capital expenditures of 15 million yuan for this purpose. This expenditure will reduce ship transportation fuel consumption and improve usage efficiency. Therefore, it will increase assets. Just focus on the operating performance (improvement expenditures are not considered). "
Su Jianxia squinted and smiled, and gently touched Hu Xian's head. 4. Methods of estimating future cash flows of assets
(1) Traditional law
The estimated future cash flow of an asset should usually be based on the most likely cash flow that the asset will generate in each period in the future. That is, using a single future expected cash flow for each period and a single discount rate to calculate the present value of the asset's future cash flows.
(2) Expected cash flow method
The future cash flow of assets should be estimated based on the expected cash flow value of each period. The expected cash flow value of each period is calculated based on the cash flow under various possible situations and its probability of occurrence.
[Example] The remaining useful life of a fixed asset of an enterprise is 3 years. Assume that the products produced using fixed assets are greatly affected by market fluctuations. The enterprise expects the annual cash flow in the next three years to be as shown in the table below. Hu Xian clicked twice. Feeling that her eyelids were getting heavier and heavier, she quickly closed her eyes and fell into Su Jianxia's arms.
Wei Ziqi waved his hands gently, and the surrounding space fluctuated again. Hu Shouyu and his wife reappeared in the same place, circling around the room with nervous faces. The little boy in Su Jianxia's arms also turned into an invisible wave. The light returned to Hu Xian who was lying on the bed.
"Mr. Wei, Miss Su, you just..." Hu Shouyu and Cheng Lianzhi froze when they saw Wei Ziqi and Su Jianxia suddenly disappearing and then reappearing.
Su Jianxia did not answer the two. The company's management should make the best estimate of the entire economic situation within the remaining useful life of the asset on a reasonable and evidence-based basis, and base the prediction of the asset's future cash flow on a basis approved by the company's management. Based on recent financial budget or forecast data
(2) However, for the sake of data reliability and ease of operation, the estimated cash flow based on the budget or forecast covers up to 5 years. If the company management can prove that a longer period is reasonable, it can cover a longer period. long term.
(3) If the estimate of the future cash flow of an asset also includes the cash flow after the most recent financial budget or forecast period, the enterprise should make the estimate based on the stable or declining growth rate in the years after the budget or forecast period. However, if the enterprise management can prove that the incremental growth rate is reasonable, it can make an estimate based on the incremental growth rate.
2. What should be included in the estimated future cash flow of assets
(1) Cash inflow expected to be generated during the continued use of the asset
(2) The estimated cash outflow necessary to realize the cash inflow generated during the continued use of the asset
(3) At the end of the asset’s useful life, the net cash flow received or paid from the disposal of the asset
【Notice】
For projects under construction, intangible assets in the development process, etc., when an enterprise predicts its future cash flows, it should include all cash outflows expected to occur when such assets reach the intended usable (or salable) state.
3. Factors that should be considered when estimating future cash flows of assets
(1) Estimate the future cash flow of the asset based on the current condition of the asset
It should not include questions about expected future cash flows related to restructuring matters that may occur in the future and for which no commitment has been made, or related to asset improvements. Instead, he pointed to Hu Xian lying on the bed and said, "Go and have a look. Your son should Already awake."
Hu Shouyu and Cheng Lianzhi looked at each other. Without any time to think, they hurried to the bed and looked nervously at Hu Xian, whose face gradually turned from pale to rosy, with wide eyes.
After a while, Hu Xian moved his fingers and coughed violently, then slowly opened his eyes.
"Dad, Mom." Seeing the two familiar faces beside the bed, Hu Xian cried "Wow".
"Xian'er!" Cheng Lianzhi could no longer control his emotions, tears burst out, and he hugged Hu Xian tightly on the bed, for fear of losing this beloved son again.
Seeing the mother and son hugging each other, Hu Shouyu's eyes were a little moist. Although he stretched out his hands, he hesitated and stopped in mid-air. Vukong hugged the mother and son, and then quietly wiped the corners of his eyes. He stood up gently and walked to Wei Ziqi and Su Jianxia.
"Mr. Wei, thank you for your ability to define asset impairment as meaning that the recoverable amount of an asset is lower than its book value.
If an asset is impaired, the asset impairment loss should be recognized and the book value of the asset should be written down to the recoverable amount.
Book value = asset cost - accumulated depreciation (accumulated amortization) - accumulated impairment provision
1. Scope of asset impairment
The assets involved in this chapter are usually non-current assets of the enterprise, specifically including:
1. Long-term equity investments in subsidiaries (control), associates (significant influence) and joint ventures (joint control)
2. Investment real estate that adopts the cost model for subsequent measurement
3. Fixed assets
4. Productive biological assets
5. Intangible assets
6.Goodwill
7. Prove the rights and interests of oil and gas mining areas, wells and related facilities
2. Signs and tests of asset impairment
(1) Judgment of signs of asset impairment
On the balance sheet date, the company should judge whether there are signs of possible impairment of assets, mainly from two aspects: external information sources and internal information sources. My son was saved. This child is really important to our couple. I He Lianzhi is just such a child, and this is the only bloodline of the Hu family. If something happens to him, the Hu family will really fall apart. "Hu Shouyu looked at Wei Ziqi (3) The cost of obtaining inventory through other methods
1. The cost of inventories invested by investors shall be determined according to the value stipulated in the investment contract or agreement, except where the value stipulated in the contract or agreement is unfair. If the investment contract or agreement stipulates that the value is unfair, the fair value of the inventory shall be used as its recorded value.
2. Relevant standards shall be implemented for the cost of inventories obtained through non-monetary asset exchange, debt restructuring, business merger, etc.
3. The cost of excess inventory is recorded at replacement cost.
(4) Inventories obtained through provision of labor services
The cost of inventory obtained through the provision of labor services is determined based on the direct labor and other direct costs of the personnel engaged in providing labor services and the indirect costs attributable to the inventory.
【Notice】
The following expenses shall be recognized as current profits and losses when incurred and shall not be included in inventory costs.
(1) Abnormal consumption of direct materials, direct labor and manufacturing expenses (loss of excess scrap, losses due to natural disasters) (non-operating expenses)
(2) Warehousing costs incurred after the purchase is put into storage (excluding the warehousing costs necessary to reach the next production stage during the production process)
(3) Other expenses that cannot be attributed to bringing the inventory to its current location and condition
(4) When an enterprise purchases specific goods for advertising and marketing activities and pays the customer in advance but does not obtain the goods, it should be accounted for as a prepaid account and included in the current profit and loss (sales expenses) when the relevant goods are obtained. Advertising and marketing services obtained by an enterprise shall be handled in accordance with this principle
[Example] Company A is a beer manufacturer. In order to thank the agents who have been distributing its products for many years, with the approval of the board of directors, in 2016, each agent who has reached a certain sales volume in the past three years will be equipped with a refrigerator for free. According to Company A and the agent According to the agreement with the dealer, the ownership of the refrigerator belongs to Company A and will be provided to the agent free of charge within the expected service life. Company A will not take it back or use it for other purposes. Company A provides 500 refrigerators to agents, each worth 10,000 yuan. The refrigerators have an estimated service life of 5 years and an estimated net residual value of zero. Company A uses the straight-line method to calculate depreciation for similar fixed assets used by the company. Regardless of other factors, among the following statements about the accounting treatment of refrigerators provided by Company A to agents for free, the correct one is (D) A
A. Include the purchase cost of the refrigerator as a sales expense in 2016 in the current income statement
B. Since it is impossible to control the physical object of the refrigerator and its use, the purchase cost of the refrigerator is recognized as an intangible asset and amortized over five years, which is a deep bow.
Wei Ziqi shook his head, "I just brought his soul back temporarily and sealed it into my body again, but this is not a long-term solution. The only way to solve the problem is the two paths I told you last time.
The situation in your family now should be more serious than what you told us. You and your wife should also be infected with this disease. More than half of the young and middle-aged people in the entire family have been killed or injured. Although the elderly, women and children are better, they are still better. It probably won't last long. If it weren't for your son dying, you probably wouldn't have made this call to me. "
Hu Shouyu lowered his head, with a somewhat painful expression, "I know that I am too selfish. For my own selfish desires and my own interests, I ignore the entire family. I say that I cannot let the family decline, but when the family encounters If I still dare not stand up in such a big disaster, I am a coward."
"It's too late to say this now. It's not easy to save your son temporarily. The rest, whether you can prevent things from developing in a more serious direction depends on your own choice." Su Jianxia He glanced at Cheng Lianzhi, who was holding Hu Xian by the bed and unwilling to let go, and sighed, "You still have a wife and children. Although it is very unfair for you to sacrifice, some things always need someone to sacrifice. "
"It's just that I don't understand, after so many years, why it's me." Hu Shouyu hugged his head.
"The sins sown in the past life will always be paid back in this life." Wei Ziqi said for no reason.
Hu Shouyu was stunned for a moment, then raised his head to look at Wei Ziqi, "Mr. Wei, what did you just say? Does the evil I did in my previous life have anything to do with my previous life?"
Wei Ziqi did not answer, "That's not the point. Tell me your choice. Are you willing to form a blood contract with that jade statue, or dissolve this contract that has entangled your family for thousands of years."
There was a long silence this time. Hu Shouyu stood there with a struggling look on his face. He opened his mouth several times, but nothing came out.
Wei Ziqi and Su Jianxia were not in a hurry. They found two random chairs in the room. One closed his eyes and began to relax, and the other took out his mobile phone and started watching videos. Such a tense atmosphere seemed to have no effect on them.
About an hour later, Hu Shouyu shook his numb legs, and took a trembling step forward, ready to tell the two of them his decision.
"dad."
Hu Xian's crisp voice interrupted Hu Shouyu's steps. Hu Shouyu looked down at his son holding her thigh and asked curiously, "Dad, where are you going?"
Hu Shouyu rubbed the transportation fees, loading and unloading fees, insurance premiums and other expenses attributable to inventory purchase costs incurred by commodity circulation companies in the process of purchasing goods.
(1) It should be included in the inventory purchase cost
(2) It can also be collected first and apportioned at the end of the period based on the inventory and sales of the purchased goods.
①The purchase cost of sold goods shall be included in the main business cost
② The purchase cost of unsold goods shall be included in the ending inventory cost.
(3) If the purchase cost of goods purchased by the enterprise is relatively small, it can be directly included in the sales expense when incurred.
(2) Cost of processing and obtaining inventory
1. Composed of procurement costs, processing costs, and other costs
2. Inventory processing costs consist of direct labor and manufacturing overhead
Manufacturing overhead refers to various indirect expenses incurred by an enterprise to produce products and provide services. Manufacturing overhead is an indirect production cost, including employee salaries, depreciation expenses, office expenses, water and electricity expenses, machine and material losses, labor protection expenses, repair expenses for fixed assets in the workshop, seasonal and downtime losses during repairs, borrowing costs incurred for the production of products that meet the capitalization conditions, amortization of self-developed or purchased intangible assets used for product production, etc.
【Notice】
1. Handling of warehousing costs
① The warehousing expenses incurred during the purchase of inventory should be included in the purchase cost of the inventory.
② The warehousing expenses incurred after the inventory is purchased and put into storage but before it is used should be included in the current profit and loss (administrative expenses)
③ The warehousing expenses necessary for the inventory to reach the next production stage during the production process should be included in the production cost.
2. Directly determinable design expenses incurred in designing products for specific customers are included in inventory costs, while design expenses for general products are included in current profits and losses.
[Example] Company A is a manufacturing enterprise. Among the following expenses or losses incurred in its daily operating activities, which of the following expenses or losses should be included in the inventory cost (B)
A. Salary management expenses of warehouse custodians
B. Manufacturing costs incurred during seasonal shutdowns. The son’s head was trying to make himself smile more naturally, “Dad went out to do some errands with my uncle and sister and will be back soon.”
Hu Xian tilted his head and looked at Wei Ziqi and Su Jianxia who were sitting not far away, his eyes lit up, "Dad, I have seen this uncle and sister, as if in my dream, they are amazing, they I brought back two bad guys.”
Su Jianxia raised her head, met Hu Xian's gaze, squinted and smiled, "I still remember my sister."
Hu Xian nodded quickly, "Sister, you said that I would be able to see my parents if I obeyed, and now I really can."
"Sister won't lie. Now your dad wants to go out with your sister. The two bad guys were still nearby just now. Let's go with your dad to drive them away." Su Jianxia coaxed the child seriously. .
"Dad, is it true?" Hu Xian looked at Hu Shouyu innocently again.
"Of course it's true. Only by driving away all the bad guys will Xian'er no longer be in danger." Hu Shouyu nodded and quickly looked away, not daring to look at Hu Xian again.
"Then will daddy come back?"
"Of course I will. Dad also said that he will take Xian'er to the beach to see dolphins in the future. Dad will definitely come back."
"Then Dad must keep his word!" Hu Xian nodded heavily and then let go of Hu Shouyu's thigh.
"Okay Xian'er, come to mom, don't pester dad all the time." Cheng Lianzhi, who had been beside the bed, also came over, gently pulled Hu Xian behind him, and held Hu Shouyu's hand tightly with his other hand. .
"Husband, I know this matter may not be easy to solve, but no matter what decision you make, I will support you, but before making a decision, you must remember that Xian'er and I are waiting for you at home."
Looking at the worried eyes of his wife who was with him day and night, Hu Shouyu knew that she must have guessed that something bad would happen, but she still chose to support him without hesitation.
Thinking of this, Hu Shouyu felt that he could not control his emotions. He quickly turned his head, not daring to let his wife and son see his tears. Then he squeezed his wife's hand heavily to tell her not to worry, and then strode towards Wei Zi Qihe. Su Jianxia.
Su Jianxia sighed and handed Hu Shouyu a piece of paper.
Hu Shouyu thanked him, took the paper and wiped his tears, then lowered his head and said, "I know it may be selfish to say this. I have already made a decision to sacrifice myself to be with the woman in the jade statue. After signing the blood contract, the family can continue to prosper, but I still have a wife and children. They are the people I love most in this world, and I don’t want to be separated from them. So Mr. Wei, I want to ask you, can you Will you help me terminate this contract forever?"
Nature and confirmation conditions of inventories
Inventories refer to finished products or commodities held by an enterprise for sale in daily activities, products in progress during the production process, materials and supplies consumed in the production process or the provision of labor services, etc.
The ultimate purpose of an enterprise's inventory is to sell it. Inventories include: raw materials, work-in-progress, semi-finished products, finished products, commodities, turnover materials, materials in transit, shipped commodities, commissioned processing materials, commissioned consignment commodities, etc.
【Notice】
1. Materials reserved for the construction of various projects of fixed assets cannot be used as inventory of the enterprise (project materials: non-current assets)
2. The enterprise accepts substitute products processed and manufactured from foreign raw materials and repair products processed and repaired by external units. After the manufacturing is completed or the repairs are inspected and accepted into the warehouse, they shall be regarded as the finished products of the enterprise.
3. The real estate development enterprise and the purchased land use rights for the construction of commercial housing belong to the enterprise's inventory.
4. For goods entrusted for consignment, since their ownership has not been transferred to the consignee, the goods entrusted for consignment cannot be recognized as part of the consignee's inventory. Therefore, when filling in the "inventory" item of the balance sheet, the two accounts of "commodities entrusted for sale on consignment" and "payment for goods sold on consignment" offset each other and are not included as the consignee's inventory.
[Example question. Multiple choice question] Which of the following items should not be included in the balance sheet inventory items (AB) BC
A. Materials entrusted to other units for processing
B. Accept raw materials for processing from supplied materials
C. Various materials and engineering materials prepared for construction projects
D. Land use rights of real estate development enterprises for commercial housing under construction
2. Initial measurement of inventory
Inventories should be initially measured at cost. Inventory costs include purchase costs, processing costs and other costs
(1) Cost of purchased inventory
