【正文】 it can be identified only with the business as a whole. GOODWILL 商譽(yù) ? Goodwill is recorded only when there is an exchange transaction that involves the purchase of an entire business. ? When an entire business is purchased, goodwill is the excess of cost over the fair market value of the assets (assets less liabilities) acquired. ? Goodwill is written off over its useful life not to exceed forty years. ABC pany’s assets = Asset – Liabilities = $2,000,000 Fair value of ABC (or Selling price of ABC ) = $5,000,00 Goodwill = 5,000,000 – 2,000,000 =3,000,000 ? Research and development costs pertain to expenditures incurred to develop new products and processes. ? These costs are not intangible costs, but are usually recorded as an expense when incurred. RESEARCH AND DEVELOPMENT COSTS 研發(fā)成本 ? Usually plant assets and natural resources are bined under Property, Plant, and Equipment, and intangibles are shown separately under Intangible Assets. ? Major classes of assets, such as land, buildings, and equipment, and accumulated depreciation by major classes or in total should be disclosed. ? The depreciation and amortization methods used should be described and the amount of depreciation and amortization expense for the period disclosed. STATEMENT PRESENTATION 報(bào)表列示及分析 STATEMENT PRESENTATION OF PROPERTY, PLANT, AND EQUIPMENT AND INTANGIBLE ASSETS Timberland ( ) $ Buildings and Equipments, at cost $ Less: accumulated depreciations $ $ Total Property, Plant, Equipment $ Intangibles Patents $ Total $ Homework ? E101, E105, E106, E107, E1011 ? P102A 。 and 3 at disposal, book value is eliminated and gain or loss, if any, is recorded. ACCOUNTING FOR INTANGIBLE ASSETS ? Differences between the accounting for intangible assets and the accounting for plant assets include: ? The systematic writeoff of an intangible asset is referred to as amortization攤銷(xiāo) . ? To record amortization, Amortization Expense is debited and the specific intangible asset is credited. ? The amortization period cannot be longer than 40 years. ? Amortization is typically puted on a straightline basis. ? A patent is an exclusive right issued by the United States Patent Office that enables the recipient to manufacture, sell, or otherwise control his or her invention for a period of 20 years from the date of grant. ? The initial cost of a patent is the cash or cash equivalent price paid when the patent is acquired. PATENTS 專利 ? Legal costs incurred in successfully defending the patent are added to the Patent account and amortized over the remaining useful life of the patent. ? The cost of the patent should be amortized over its 20year legal life or its useful life, whichever is shorter. PATENTS 專利 RECORDING PATENTS National Labs purchases a patent at a cost of $60,000. If the useful life of the patent is 8 years. the annual amortization expense is $7,500 ($60,000 247。 10,000,000 = $.50 depletion cost per ton $.50 X 800,000 = $400,000 depletion expense The entry to record depletion expense for the first year of operations is as follows: Accounts title DR CR Depletion expense 400,000 Accumulated depletion 400,000 ? Intangible assets are rights, privileges, and petitive advantages that result from the ownership of long lived assets that do not possess physical substance. ? Intangibles may arise from government grants, acquisition of another business, and private monopolistic arrangements. INTANGIBLE ASSETS 無(wú)形資產(chǎn) ? In general, accounting for intangible assets parallels the accounting for plant assets. ? Intangible assets are: 1 recorded at cost。 Account titles DR CR Depreciation Expense 1800 Accumulated Depreciation 1800 Book Value = cost – accumulated depreciation =12021 – 1800 =10200 DECLININGBALANCE 余額遞減法 ? The decliningbalance method produces a decreasing annual depreciation expense over the useful life of the asset. ? The calculation of periodic depreciation is based on a declining book value (cost less accumulated depreciation) of the asset. DECLININGBALANCE 余額遞減法 ?Annual depreciation expense is calculated by multiplying the book value at the beginning of the year by the decliningbalance depreciation rate. ? The depreciation rate remains constant from year to year, but the book value to which the rate is applied declines each year. ? The book value for the first year is the cost of the asset since accumulated depreciation has a zero balance at the beginning of the asset’s useful life. ? In subsequent years, book value is the difference between cost and accumulated depreciation at the beginning of the year. DECLININGBALANCE 余額遞減法 ? The formula for puting depreciation expense is: Book Value at Beginning of Year X Declining Balance Rate = Annu