Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
8 Cards in this Set
- Front
- Back
|
DDB |
2 x 1/UL x BV Setup: CV A/D Depr Exp x1 x2 x3 |
|
|
Sum of Yrs Digits |
x1 rem. UL/Sum UL x (cost -SV) = depr exp x2 rem. UL/Sum UL x (cost -SV) = depr exp x3 rem. UL/Sum UL x (cost -SV) = depr exp CV for yr3 add all yrs depr exp |
|
|
Depr due to PPE retirements |
A/D Beg Bal + x2 depr = Bal b4 retirements - Bal after retirements = Debit for retirements |
|
|
Method of depreciation used when an asset's service potential declines with use |
Unit of production method Depr rate= depreciable base/total est. units to be produced Annual depr= depr rate x # of units produced |
|
|
Depreciable base= |
cost paid - new owner SV |
|
|
Composite depreciation |
Depreciable cost/ annual depreciation Depreciable cost= total cost - total SV annual depreciation calculate for each asset |
|
|
Fixed Asset Impairment (GAAP) |
Steps: 1) Undisc FNCF - CV -> positive no impairment -> negative- Go to Step 2 2) Asset held for use: write down only FV or PVFNCF - (CV)= imp loss Asset held for sale: restoration permitted FV of PVFNCF - (CV)= imp loss + disposal= total imp loss |
|
|
Fixed Asset Impairment (IFRS) |
CV vs *Recoverable Amount *Recoverable Amt is > of FV less selling costs or PVFCF (aka value in use) **Also, IFRS allows reversal |
