实用的会计英语（2012年注册会计师英语）(9)

Contract revenue ◆ Initial amount agreed 固定的初始收入 ◆ Variations 变更 ◆ Claims 索赔 ◆ Incentive payments 奖励款 Recognizing contract revenue and costs

Contract costs Direct costs ◆ Site labor and supervision ◆ Materials ◆ Plant ＆ equipment depreciation ◆ Moving costs ◆ Hire Charges 租赁费用 ◆ Design Attributable costs ◆ insurance ◆ Overheads 间接费用 Long-term construction contracts span more than one accounting year-end. This leads to the problem of determining when and how the contract revenue and contract cost should be recognized.

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Outcome can be estimated reliably 合同结果能够可靠估计 If the expected outcome is a profit: ? Recognize revenue and costs by reference to stage of completion of contract 完工百分比. If the expected outcome is a loss 合同预计损失: ? ? Recognize revenue by reference to stage of completion of contract. Recognize the whole loss to I/S immediately regardless of the percentage completed ( make necessary provision) (提取损失准备). Recognize contract costs as an expense in period incurred. 合同成本在发生时确认为费用 Recognize revenue only to the extent of contract costs expected to be recovered. 合同收入根据能够收回的实际合同成本予以确认 Outcome cannot be estimated reliably 合同结果不能可靠估计 ? ? Percentage of completion

Cost to date =% Total expected costs

The percentage of completion method is applied on a cumulative basis in each accounting period to the current estimates of contract revenues and costs

合同完工进度=累计实际发生的合同成本/合同预计总成本

Practice question:

Paulson Company uses the percentage-of-completion method to account for long-term construction contracts. The following information relates to a contract that was awarded at a price of $700,000. The estimated costs were $500,000, and the contract duration was three years. Cumulative cost to date

Year 1 $300,000

Year 2 $390,000 130,000 220,000 200,000

Year 3 $530,000

Costs to complete at year end 250,000 Progress billings 325,000 Collections on account 300,000

-0- 155,000 200,000

Assuming that $65,000 was recognized as gross profit in Year 1, the amount of gross profit Paulson recognized in Year 2 was a. $59,950. b. $70,000. c. $124,950. d. $135,000. Answer: b

Year 2 cumulative percentage of completion: 390/(390+130)= 75% Year 2 cumulative gross profit: (700-(390+130))*75%=135 Year 2 gross profit:135-65=70

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-（本章完）-

Unit 5 Special Issues

Government grants

Definition A government grant is defined as assistance, in the form of cash or other assets, given in return for compliance with certain conditions relating to the enterprise’s operations.

Accounting treatment

An entity should not recognize government grants ( including non-monetary grants at fair value) until it has reasonable assurance that : ? ?

The entity will comply with any conditions attached to the grant The entity will actually receive the grant

IAS 20 requires grants to be recognized under the income approach (收益法), i.e. grants are recognized as income over the relevant periods to match them with related costs which they have been received to compensate. This should be done on a systematic basis of matching. Grants related to assets: Set up the grant as deferred income Example:

Europe Limited buys a building for a total cost of $200,000. They receive a European Community grant of $60,000 towards the cost and pay the net of $140,000 by check. The useful economic life of the building is estimated at 50 years.

Under the deferred income (递延收益) method:

Dr NCA 200,000 Cr Cash 140,000 Cr Deferred Income 60,000 Depreciation （折旧） = 200,000 / 50 = 4,000 pa

Amortization of Government grant （政府补助的摊销）= 60,000 / 50 = 1,200 pa

Dr Deferred income 1,200 Cr Grant income （营业外收入） Grants related to income: 1. If expenditure already incurred:

1,200

Dr Grant Receivable $x

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2.If expenditure is to be incurred in the future:

Cr Grant Income

Dr Grant Receivable Cr Deferred Income

Dr Deferred Income Cr Grant Income

$x $x

$x $x $x

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Borrowing costs

Borrowing costs comprise the interest and other costs incurred by an enterprise in borrowing funds：

Interest expense calculated using the effective interest rate Finance charges in respect of finance leases

Exchange differences

借款费用是企业因借入资金所付出的代价，包括借款利息、折价或者溢价的摊销、辅助费用以及因外币借款而发生的汇兑差额等。承租人确认的融资租赁发生的融资费用属于借款费用。 They may be based on specifically borrowed funds （专门借款）or on the weighted average cost （加权平均成本） of a general borrowings （一般借款）.

Qualifying assets are assets that take a substantial period of time to get ready for its intended use or sale.

符合资本化条件的资产是指需要经过相当长时间的构建或者生产活动才能达到预定可使用或者可销售状态的资产。

Accounting treatment 1.Other borrowing costs, such as interest cost on funds borrowed for operations, should be expensed when incurred.

2.Borrowing costs directly incurred on a qualifying asset can be capitalized as part of the cost of that asset.

企业发生的借款费用可直接归属于符合资本化条件的资产构建或者生产的，应当予以资本化，计入相关资产成本。其他借款费用应当在发生时根据其发生额确认为费用，计入当期损益。 Capitalizat …… 此处隐藏：3547字，全部文档内容请下载后查看。喜欢就下载吧 ……