ACCA/CAT

本文主要介绍ACCA考试《F3财务会计》辅导资料。希望本文能够帮助您更好的全面了解2012年ACCA考试的相关重点!!

9.2 Accounting treatment of depreciation: - a mechanism to reflect the cost of using a non-current asset

(i)Depreciation is charged as an expense in the profit and loss account

(ii)The corresponding credit is accumulated in the provision for depreciation account in the balance sheet to offset against the original cost of the fixed assets.

●Method of depreciation:

Straight-line method

The depreciable amount is spread evenly across the useful life of the fixed asset, resulting in same amount of depreciation charged every year.

Depreciation charge = Cost of asset minus residual value

Expected useful life of the asset

Residual value: the estimated disposal value of the asset at the end of its useful life.

Example:

A non-current asset costing $60,000 has an estimated life of five years and a residual life of $7,000.The annual depreciation charge using the straight line method would be calculated as follows:

$( 60,000 – 7,000)= $10,600 per annum

5 years

The net book value of the fixed assets would reduce each year as follows:

After 1 year　after 2 years　after 3 years　after 4 years　after 5 years

$ $ 　$ $ 　$

Cost 60,000 60,000 60,000 60,000 60,000

Accumulated　10,600 21,200 31,800 42,400 　53,000

Depreciation

Net book value 49,400 38,800 28,200 17,600 7,000 (estimated residual value)

 

ACCA考试《F3财务会计》讲义辅导(29)" width="341" height="213" src="//www.wangxiao.cn/kuaiji/UploadFiles_6755/201208/2012080808265550.jpg" />

 

Reducing balance method

A fixed depreciation rate ( percentage)is applied to the fixed asset’s net book value( cost less accumulated depreciation)every year.Since net book value diminishes yearly, the depreciation charge falls every year.

Depreciation charge = X% x net book value

Net book value = Cost of an asset – accumulated depreciation

Asset bought/sold in the period:

- full year’s depreciation in the year of acquisition and none in the year of disposal

- monthly or pro rata，based on the exact number of months that the assets has been owned.

Exercise 1 :

Hopkins who makes up accounts to 31 December, buys a car on 1 January 20x1 for $5,000. The depreciation policy is 20% pa(每年), using the reducing balance method. What is the depreciation charge for each of the first five years?

Year 20%on Depreciation Accumulated Net book

net book value charge Dep. value

20x1 　20% of $5,000 $1,000 $1,000 $4,000

20x2 20% of $4,000 800 1,800 3,200

20x3 20% of $3,200 640 2,440 2,560

20x4 20% of $2,560 512 2,952 2,048

20x5 20% of $2,048 410 3,362 1,638

20x6 20% of $1,638 328 3,690 1,310

Exercise 2:

The following information relates to B & S, a car repair business:

Machine 1 Machine 2

Cost $12,000 　$8,000

Purchase date　1 August 20x5 1 October 20x6

Depreciation 20% straight line 10% reducing balance

Method pro-rata pro- rata

What is the depreciation charge for years ended 31 December 20x5 and 31 December 20x6?

20x5 　20x6

$ $

A. 2,400 2,600

B. 1,000 2,600

C. 2,400 3,200

D. 1,000 3,200

Solution:

- for machine 1:

20x5: 20% x 12,000 x 5/12 = 1,000

20x6: 20% x 12,000= 2,400

- for machine 2:

20x6: 10% x 8,000 x 3/12=200

Total depreciation: 20x5: 1,000

20x6: 2,400 + 200 = 2,600

Answer: B

●Accounting for depreciation: - whichever method is used to calculate depreciation, the accounting remains the same:

Journal entry is:

Dr. Depreciation

Cr. Accumulated Depreciation ( provision for depreciation)

Accumulated depreciation account is cumulative, i.e. reflects all depreciations to date.

Cost X

Accumulative Depreciation (X)

NBV X

●Consistency and subjectivity when accounting for depreciation:

- The following are all based on estimates made by the management of a business:

Depreciation method

Residual value

Useful life

- Different estimates would result in varying levels of depreciation, and

consequently, profits.

- It can be argued that these subjective areas could therefore result in manipulation of the accounts by management.

- In order to reduce the scope for such manipulation and increase consistency of treatment, IAS 16 Property, Plant and Equipment requires the following:

depreciation method should be reviewed at each year end and changed if the method used no longer reflects the pattern of the use of the asset.

residual value and useful life should be reviewed at each year end and changed if expectations differ from previous estimates.

Ex 3. A purchased a non-current asset for $100,000 on 1 January 20x2 and started depreciating it over 5 years. Residual value was taken as $10,000.

At 1 January 20x3, a review of asset lives was undertaken and the remaining useful life was estimated at 8 years. Residual value was estimated nil.

Calculate the depreciation charge for the year ended 31 December 20x3 and subsequent years.

Solution:

Initial depreciation charge (100,000-10,000)/5 = 18,000

NBV at date of charge: 100,000-18,000 = 82,000

New depreciation charge: 82,000/8 = 10,250

相关文章:

2012年ACCA考试《F3财务会计》辅导资料汇总

2012年ACCA《F1会计师与企业》辅导讲义汇总

2012年ACCA考试辅导资料精华

更多关注：

报考指南  考试论坛   考试用书

（责任编辑：中大编辑）