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TỰ NHÓM CHỮ
HỌ & TÊN MSSV BÀI TẬP ĐÁNH ĐÁNH KÍ
GIÁ GIÁ
Trần Thị
13094881 11.12
Hoàng Hà (NT)
Lê Thị Thanh
13094261 11.9(e f g )
Thuý
Nguyễn Thị
13090821 1; 11.9(a b)
Thuỷ Tiên
Lê Hoàng Thảo
13091701 2; 11.9(c d)
Trúc
Lương Ngọc
13057641 4; 11.10(a b)
Phương Uyên
Hoàng Xuân
13064131 10; 11.10( e f)
Thảo
Nguyễn Lê
13085461 9; 11.10(c d)
Thanh Thảo
11 Property, plant and equipment
Discussion questions:
2. What are the recognition criteria for property, plant and equipment?
Paragraph 7 of IAS 16 contains the principles for recognition of property, plant
and equipment:
The cost of an item of property, plant and equipment shall be recognized as an
asset if, and only if:
a) It is probable that future economic benefits associated with the item will
flow to the entity
b) The cost of the item can be measured reliably
10. How does an entity choose between depreciation methods, for example,
straightline versus disminishing-balance models?
Depreciation is the allocation of an asset’s cost over its useful life. You
incur a depreciation expense each period to account for using an asset, such as a
building, in your operations. For financial reporting purposes, your small business
may choose one of several methods to depreciate an asset. Based on generally
accepted accounting principles, you should select the method that best matches the
depreciation expense to the revenue the asset helps to generate. Base your choice
on how you expect to use an asset in your small business during the asset’s life.
Step 1
Consider whether you will use an asset an equal amount each period
continually throughout its useful life. If so, select the straight-line depreciation
method, which allocates an equal portion of an asset’s cost to depreciation expense
each period. Assets for which you might choose this method include buildings and
office furniture, such as a desk. For example, assume your small business owns a
factory that you typically use during the same business hours each week. You
would choose the straight-line method to best match the factory’s depreciation
expense to its use.
Step 2
Determine if an asset generates a measurable quantity of output each period
in units, such as pages printed or machine hours used. If your asset produces
measurable units, you may use the units-of-production method, which allocates
depreciation on a per-unit basis each period. This method allocates more
depreciation expense to periods of heavier use and less expense to periods of
lighter use. For example, if your small business owns a copier and you can track
the number of pages it prints each period, you may use the units-of-production
method.
Step 3
Decide whether you will use an asset more in the early years of its life than
in the later years. If this is the case, you may use the declining-balance method,
which allocates a greater amount of depreciation expense to the early years of an
asset’s life. The amount of depreciation expense decreases each year with this
method. This method works well for assets that you expect to wear out quickly.
For example, if your small business owns a truck that you will use less as it ages,
the declining-balance method would properly match depreciation expense to its
use.
Exercises:
Stamp duty a duty levied on the legal recognition of certain documents. A tax that
Trabit Ltd pay when it buy a new building.
B) Real estate agent’s fees should be included in the cost of the building
because:there are fees to the persons who arrange the sale, leasing,
management, land and buildings to the owners
If the parking bays located in the building or it is a part of the building, it should
be included in the cost of the building.
The parking bays is seprated as a asset when it located outside of the building
(a) Labour and travel costs for managers to inspect possible new machines
and for negotiating for a new machine .
This cost is excluded into the cost of building because of management’s
decisions regarding the timing of operations rather than being attributable
to getting the asset in a position for operation.
(b) Freight costs and insurance to get the new machine to the factory.
This cost is excluded into the cost of building because these costs do not
enhance the operating ability of machine .
(c) Costs for renovating a section of the factory, in anticipation of the new
machine’s arrival, to ensure that all the other parts of the factory will
have easy access to the new machine
the costs of building because paragraph 16 of IAS 16 include costs of
renovating
(d) Cost of cooling equipment to assist in the efficient operation of the new
machine
the costs of building because paragraph 16 of IAS 16 include costs of
cooling equipment
(e) Costs of repairing the factory door, which was damaged by the
installation of the new machine.
It is general expense and be revenue expenditure.
Costs of repair – these are not directly attributable to bringing the asset to
its location and condition for operation. These costs should be expensed.