西方财务会计 原版课件11

Chapter11-1Chapter11-2CHAPTER11DEPRECIATION,IMPAIRMENTS,ANDDEPLETIONIntermediateAccounting13thEditionKieso,Weygandt,andWarfieldChapter11-31.Explaintheconceptofdepreciation.2.Identifythefactorsinvolvedinthedepreciationprocess.3.Compareactivity,straight-line,anddecreasing-chargemethodsofdepreciation.4.Explainspecialdepreciationmethods.5.Explaintheaccountingissuesrelatedtoassetimpairment.6.Explaintheaccountingproceduresfordepletionofnaturalresources.7.Explainhowtoreportandanalyzeproperty,plant,equipment,andnaturalresources.LearningObjectivesChapter11-4DepreciationFactorsinvolvedMethodsofdepreciationSpecialmethodsSpecialissuesImpairmentsDepletionPresentationandAnalysisRecognizingimpairmentsMeasuringImpairmentsRestorationoflossAssetstobedisposedofPresentationAnalysisEstablishingabaseWrite-offofresourcecostEstimatingreservesLiquidatingdividendsContinuingcontroversyDepreciation,Impairments,andDepletionChapter11-5Allocatingcostsoflong-termassets:Fixedassets=DepreciationexpenseIntangibles=AmortizationexpenseNaturalresources=DepletionexpenseDepreciationistheaccountingprocessofallocatingthecostoftangibleassetstoexpenseinasystematicandrationalmannertothoseperiodsexpectedtobenefitfromtheuseoftheasset.Depreciation-MethodofCostAllocationLO1Explaintheconceptofdepreciation.Chapter11-6Depreciation-MethodofCostAllocationLO2Identifythefactorsinvolvedinthedepreciationprocess.Threebasicquestions:FactorsInvolvedintheDepreciationProcess(1)Whatdepreciablebaseistobeused?(2)Whatistheasset’susefullife?(3)Whatmethodofcostallocationisbest?Chapter11-7Depreciation-MethodofCostAllocationLO2Identifythefactorsinvolvedinthedepreciationprocess.DepreciableBaseFactorsInvolvedintheDepreciationProcessIllustration11-1Chapter11-8Depreciation-MethodofCostAllocationLO2Identifythefactorsinvolvedinthedepreciationprocess.EstimationofServiceLifesFactorsInvolvedintheDepreciationProcessServicelifeofanassetoftendiffersfromitsphysicallife.Companiesretireassetsfortworeasons:physicalfactors(suchascasualtyorexpirationofphysicallife)andeconomicfactors(obsolescence).Chapter11-9Depreciation-MethodofCostAllocationLO3Compareactivity,straight-line,anddecreasing-chargemethodsofdepreciation.Theprofessionrequiresthemethodemployedbe“systematicandrational.”Examplesinclude:MethodsofDepreciation(1)Activitymethod(unitsofuseorproduction).(2)Straight-linemethod.(3)Sum-of-the-years’-digits.(4)Declining-balancemethod.(5)Groupandcompositemethods.(6)Hybridorcombinationmethods.AcceleratedmethodsSpecialmethodsChapter11-10Depreciation-MethodofCostAllocationLO3Compareactivity,straight-line,anddecreasing-chargemethodsofdepreciation.ActivityMethodIllustration11-2Illustration:IfStanleyusesthecranefor4,000hoursthefirstyear,thedepreciationchargeis:StanleyCoalMinesFactsIllustration11-3Chapter11-11Depreciation-MethodofCostAllocationLO3Compareactivity,straight-line,anddecreasing-chargemethodsofdepreciation.Straight-LineMethodIllustration11-2Illustration:Stanleycomputesdepreciationasfollows:StanleyCoalMinesFactsIllustration11-4Chapter11-12Depreciation-MethodofCostAllocationLO3Compareactivity,straight-line,anddecreasing-chargemethodsofdepreciation.Decreasing-ChargeMethodsIllustration11-2StanleyCoalMinesFactsSum-of-the-Years’-Digits.Eachfractionusesthesumoftheyearsasadenominator(5+4+3+2+1=15).Thenumeratoristhenumberofyearsofestimatedliferemainingasofthebeginningoftheyear.Chapter11-13Depreciation-MethodofCostAllocationLO3Compareactivity,straight-line,anddecreasing-chargemethodsofdepreciation.Sum-of-the-Years’-DigitsIllustration11-6Chapter11-14Depreciation-MethodofCostAllocationLO3Compareactivity,straight-line,anddecreasing-chargemethodsofdepreciation.Decreasing-ChargeMethodsIllustration11-2StanleyCoalMinesFactsDeclining-BalanceMethod.Utilizesadepreciationrate(percentage)thatissomemultipleofthestraight-linemethod.Doesnotdeductthesalvagevalueincomputingthedepreciationbase.Chapter11-15Depreciation-MethodofCostAllocationLO3Compareactivity,straight-line,anddecreasing-chargemethodsofdepreciation.Declining-BalanceMethodIllustration11-7Chapter11-16Depreciation-MethodofCostAllocationLO3Compareactivity,straight-line,anddecreasing-chargemethodsofdepreciation.E11-5(DepreciationComputations—FourMethods):KCCorporationpurchasedanewmachineforitsassemblyprocessonAugust1,2010.Thecostofthismachinewas$150,000.Thecompanyestimatedthatthemachinewouldhaveasalvagevalueof$24,000attheendofitsservicelife.Itslifeisestimatedat5yearsanditsworkinghoursareestimatedat21,000hours.Year-endisDecember31.Instructions:Computethedepreciationexpenseunderthefollowingmethods.(a)Straight-linedepreciation.(c)Sum-of-the-years’-digits.(b)Activitymethod(d)Double-decliningbalance.Chapter11-17Depreciation-MethodofCostAllocationLO3Compareactivity,straight-line,anddecreasing-chargemethodsofdepreciation.CurrentDepreciableAnnualPartialYearAccum.YearBaseYearsExpenseYearExpenseDeprec.2010126,000$/5=25,200$x5/12=10,500$10,500$2011126,000/5=25,20025,20035,7002012126,000/5=25,20025,20060,9002013126,000/5=25,20025,20086,1002014126,000/5=25,20025,20011