会计英语unit8FixedAssetsIntangibleAssets教学教材演示幻灯片.ppt

* * Unit 8 Fixed Assets Intangible Assets Ⅰ Fixed Assets Ⅱ Intangible Assets Ⅰ Fixed Assets Fixed assets are long-term or relatively permanent assets like land, building, equipment, etc. They’re long-lived assets because their useful lives are expected to last for more than one year. Fixed assets are critical to a company’s success because they determine the company’s capacity and performance. Many companies have substantial investments in fixed assets. 1. Acquisition for Fixed Assets The acquisition cost is recorded at historical cost to get them in place and ready to use, including all expenditures reasonable and necessary, such as purchase price, freight costs paid by the purchaser, installation costs. Dr. Fixed Assets Cr. Cash Fixed assets are acquired through purchases, barter trade, capital transfers in kind, financial lease, improvement of fixed assets and natural growth of those natural assets that yield repeat products. ①Purchase of a Building/Plant When an existing building is purchased, its cost includes the purchase price plus all repair and maintenance costs required to put in usable condition. When a business constructs its own building, the cost includes all reasonable expenditures, such as those for materials, labor, and other indirect costs, architectural fees, legal fees, insurance during construction and building permits. ②Purchase of Land The cost of land purchased includes cash price for purchase, commission for real estate agents, legal fees, accrued taxes paid by the purchaser, cost of training, clearing and grading assessment fee. ③Purchase of Equipment The cost of equipment includes all expenditures in getting it ready for use, such as invoice price less cash discounts, freight and transportation, insurance, tax, installation cost, test fees. 2.Depreciation for Fixed Assets What? It is a process of allocating the cost of a fixed asset over its useful/service life. Why? The wear and tear on fixed assets that have long lives exi