New f4 - working capital, inventories, fixed assets, depreciation

Question 1

Fixed Assets _Valuation_US GAAP

Answer 1

1. historical cost = carrying amount
2. donated fixed asset - at fair market value on that day
   Fixed Asset (FMV) xxxx
   Gain on nonreciprocal transfer xxx

Question 2

Fixed asset_valuation_ifrs

two models

1. cost model
2. revaluation model

Answer 2

1. cost model (=US gaap, historical cost)
   carrying amount = historical cost - accumulated depr. - impairment
2. Revaluation model (IFRS ONLY)
   carrying amount = fair value at revaluation day - subsequent acc depr. - subsequent impairment

revaluation loss -> I/S, unless revaluation gain on OCI (那就可以抵消OCI里面的Gain)

revaluation gain -> OCI

impairment -> just like revaluation loss, 1st - reduce gain in OCI, 2nd hit I/S.

PUFE R- revaluation surplus (IFRS only)

Question 3

Fixed Asset_cost of equipment

Answer 3

items to include -

1. invoice price
2. less discounts
3. add freight-in (inventory)
4. add installation charges (to put into working condition)
5. add sales and federal excise taxes
6. possible addition of construction period interests

Capitalize or expenses?
1.
Improvement/replacement -> increase life -> reduce acc. depr

Accumulated depreciation xxx
cash for the improvement/replacement xxx

Improvement/replacement ->useful -> capitalize

2. repair
   Ordinary repair -> expense

extraordinary repair (treat as improvement/replacement)
life -> accumulated depreciation 下降
useful -> capitalized

Question 4

Fixed Asset_cost of land

Answer 4

what is included?
1. purchase price
2. broker commissions
3. title and recording fees
4. legal fees
5. draining of swamps
6. cleaning of brush and trees
7. site development (make a "pad")
8. exisiting obligations 
9. costs of razing down the old buildings
10 Less: sales of existing buildings 卖废品

land improvement (depreciate) 
Fence, water systems, sidewalks, paving, landscaping, lighting

interest exp. during the construction? -> capitalized 新卡

Question 5

Fixed Asset_cost of building

Answer 5

1. purchase price
2. all repair charges neglected by the previous owner (deferred maintenance)
3. alternations and improvement
4. architecht fee
5. interests during construction

Question 6

Fixed asset_investment property (IFRS only)

Answer 6

property under finance lease to earn rentals or for capital appreciations = investment property

1. what to include? -> purchase cost + direct expense to purchase (Legal services, professional fees, property transfer taxes)
2. capitalize -> costs to subsequently added to the property
   capitalize -> replacement
   capitalize -> service

expense -> day-to-day servicing, repairs and maintenance

3. valuation models
   cost model
   historical cost - accumulated depreciation - impairment

fair value model
reported to fair value
gain or loss -> 都去 I/S!!! 这点很重要 IFRS investment property的revaluation g/l 不去OCI