实用的会计英语（2012年注册会计师英语）(6)

Practice question 4

On January 1, bonds with a face value of $200,000, an 8% annual effective yield, and a 7% annual coupon rate were sold by Thomas Dynamics Inc. for $180,000, The bonds pay interest January 1 and July 1. Using the effective interest method, the company’s interest expense for the first six months ended July 1 will be a. $7,000. b. $7,200. c. $14,000. d. $14,400.

Answer: B (180,000*8%/2) Practice question 5

On January 1, Evangel Company issued 9% bonds in the face amount of $100,000, that mature in five years. The bonds were issued for $96,207 to yield 10%, resulting in a bond discount of $3,793. Evangel uses the effective interest method of amortizing bond discount. Interest is payable annually on December 31. What is the amount of Evangel’s unamortized bond discount at the end of the first year? a. $621. b. $2,452. c. $3,172. d. $3,793.

Answer: C {3793- (96,207*10%-100,000*9%)}

Provisions, Contingent Liabilities and Contingent Assets

预计负债，或有负债和或有资产

Prudence suggests that if a future cash outflow is foreseen we should provide for it, i.e. put a liability (a provision) in the balance sheet and the corresponding debit as a cost in the profit and loss.

The problem is that prudence not only ensures companies show bad news in the accounts as soon as possible，it also allows the accounts to be manipulated (smoothing profits).

IAS 37 attempts to prevent this manipulation and get the accounts to show a true and fair view by setting strict criteria for the recognition of a provision. A provision is a liability of uncertain timing or amount.

A liability is a present obligation of the entity arising from past events, the settlement of

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which is expected to result in an outflow from the entity of resources embodying economic benefits.

The recognition criteria are derived from the definition of a liability and the recognition criteria laid down in the Framework. A provision should be recognized when: ?

an enterprise has a present obligation (legal or constructive) as a result of a past event 过去事项所引起的现实义务 （法律或推定义务）

it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

a liable estimate can be made of the amount of the obligation.

?

?

If any of these conditions are not met then the enterprise should show a contingent liability unless the probability of an outflow is remote in which case nothing should be disclosed. Measurement of a provision 预计负债的计量 ?

The amount recognized as a provision should be the best estimate 最佳估计数of the expenditure required to settle the present obligation at the reporting date. ?

Provisions for one-off events (restructuring, environmental clean-up, settlement of a lawsuit) are measured at the most likely amount. ?

Provisions for large populations of events (warranties, customer refunds) are measured at a probability-weighted expected value. ? ?

If the time value of money is material then the provision should be discounted.

The amortization of the discount is a finance cost, and it should be disclosed separately on the face of the income statement. Environmental provision Illustration:

On 1 April 2004 the company brought into use a new processing plant that had cost $15 million to construct and had an estimated life of ten years. The plant uses hazardous chemicals which are put in containers and shipped abroad for safe disposal after processing. It is a legal requirement that the plant is decontaminated at the end of its life. The estimated present value of this decontamination, using a discount rate of 8% per annum, is $5 million. Solution: ? ? ?

Clean-up provision should be recognized since there is a present obligation.

Where they are based on future values, they should be discounted to their present value. Rather than being immediately written off to the income statement, the decontamination costs are added to the cost of the related asset and amortized over the expected life of the asset.

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?

The depreciation charge must be based on the full cost of the plant which must include the decontamination costs.

Also an imputed finance cost must be applied to the provision. Non-current assets

$million

20·0

? ?

Plant at cost ($15 million + $5 million) Depreciation at 10% per annum

(2·0) 18·0

Non-current liabilities Provision

0·4 5·4

?

Income statement

Depreciation 2·0 Accrued finance costs ($5 million x 8%) 0·4

Warranties产品质量保证

Illustration ? ? ?

A company offers a warranty on the sale of all its goods for one year after the date of sale. The probability of a warranty claim on an individual item is estimated at 15%.

If a warranty claim is made then on average the repair or replacement costs 40% of the original sales value. Sales for the year ended 31 December 2008 totaled $2 million. ?

Warranty claims in respect of those sales prior to 31 December 2008 totaled $40,000.

5·0

Accrued finance costs

Solution: ?

The total expected warranty claims in respect of 2008 sales are $120,000 ($2 million ? 15% ? 40%). ?

Dr sales expense

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Claims of $40,000 have been made before the year end.

Therefore a provision is required for expected future claims of $80,000 ($120,000 - $40,000)

Cr provision Guarantees债务担保 In some instances (particularly in groups) one company will make a guarantee to a …… 此处隐藏：6658字，全部文档内容请下载后查看。喜欢就下载吧 ……