Scribd Logo
Upload

Welcome to Scribd!

  • Acquisition of Property

    Uploaded by

    Maribeth Garcia
    5 views2 pages
    The document outlines 9 methods for acquiring property: 1) Cash basis, 2) On account subject to cash discount, 3) Installment basis, 4) Issuance of share capital, 5) Exchange of bonds payable, 6) Exchange, 7) Donation, 8) Government bonds, and 9) Construction. For each method, it provides details on how to value and account for the acquired asset, such as using fair value, cash paid, present value of cash payments, or costs of direct materials, labor, and overhead.

    Original Description:

    intacc

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document outlines 9 methods for acquiring property: 1) Cash basis, 2) On account subject to cash discount, 3) Installment basis, 4) Issuance of share capital, 5) Exchange of bonds payable, 6) Exchange, 7) Donation, 8) Government bonds, and 9) Construction. For each method, it provides details on how to value and account for the acquired asset, such as using fair value, cash paid, present value of cash payments, or costs of direct materials, labor, and overhead.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    5 views2 pages

    Acquisition of Property

    Uploaded by

    Maribeth Garcia
    The document outlines 9 methods for acquiring property: 1) Cash basis, 2) On account subject to cash discount, 3) Installment basis, 4) Issuance of share capital, 5) Exchange of bonds payable, 6) Exchange, 7) Donation, 8) Government bonds, and 9) Construction. For each method, it provides details on how to value and account for the acquired asset, such as using fair value, cash paid, present value of cash payments, or costs of direct materials, labor, and overhead.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Acquisition of Property

    1. Cash Basis

    - Cash paid

    2. On Account subject to Cash Discount

    - Invoice price less Cash discount whether taken or not

    3. Installment Basis

    - Cash price equivalent

    - Present Value of all Cash Payment using Implied Rate

    4. Issuance of Share Capital

    - Fair value of asset received

    - Fair value of shares issued

    - Par value of shares issued

    5. Exchange of Bonds Payable

    - Fair value of bonds given up

    - Fair value of asset received

    - Carrying/Face amount of bonds given up

    6. Exchange

    - Fair value of asset given up if there's commercial substance

    - Carrying amount of asset given up if there's no commercial substance

    TRADE-IN

    -Dealer – normal na nyang ginagawa ang makipag trade

    (nakikipag palit ka ng asset sa mas maganda or kakaiba)

    -Assumption of fair value

    -Asset given up + payments


    7. Donation

    – Fair value of asset received

    - debit asset at fair value

    - credit is depends who is the donor (if shareholder is the donor – will deducted to donated capital
    acc) credit to donated capital account

    - if third party is the donor the donated capital will be accounted to profit or loss

    - if cost is not related to donation, and cost is related to asset

    8. Government Bonds (government assistance , donation – coming from outsider)

    - the valuation would be Fair value of asset received

    9. Construction

    - Direct Materials

    - Direct Labor

    - Overhead

    (those 3 above are needed in order to bring asset in own intended use)

    You might also like