How to settle asset impairment losses at the end of the period

If you think about the good end of an asset, why should it be accrued, it must be that the asset is worthless in the market, and the accounts receivable may not be recovered.

Understanding method 1: recovering bad debts, in popular terms, you sell goods to a person, that person has no money to pay you back, you made an entry at that time, borrow: accounts receivable, credit:

Main business income tax payable - VAT payable (output tax} After many days, you find that he has not repaid the money, you are anxious, and you feel that you will definitely not be able to collect it, so you make a pen entry, borrow accounts receivable Credit: bad debt provision Now that the money is recovered, is it just a matter of making the opposite entry.

Understanding method 2: Your money is recovered, and whether the assets are impaired, do you think it has anything to do with it, the money is recovered, and the bad debts confirmed at that time must be written off.

I'm pure hand-to-hand, hope...

The method of settlement of asset impairment losses.

1. The value-added tax of fixed assets and projects under construction cannot be deducted, but can be deducted after 2009, and should be directly included in the cost.

2. Because it cannot be deducted, it must be transferred out.

3. Asset impairment loss, if the asset can not bring economic benefits to the enterprise or the economic benefits are lower than its book value, then the asset can not be recognized, or the original book value can no longer be recognized, otherwise it does not meet the definition of assets, nor can it reflect the actual value of the assets, and the result will lead to an inflated increase in assets and profits of the enterprise. Therefore, when the recoverable amount of an enterprise is lower than its book value, it indicates that the assets have been impaired, and the enterprise should recognize the impairment loss of the assets and write down the book value of the assets to the recoverable amount.

The estimate of the recoverable amount of an asset shall be determined on the basis of the higher of the net fair value less disposal costs and the present value of the expected future cash flows of the asset.

Accounting treatment. When incurred, debit, asset impairment loss, credit fixed asset impairment provision, construction in progress impairment provision, intangible asset impairment provision, goodwill impairment provision, long-term equity investment impairment provision, biological asset impairment provision, etc.

At the end of the period, the balance is transferred to the profit of the current year.

Once the asset impairment loss is recognized, it cannot be reversed in the accounting period in the future, and it can only be transferred out when it is disposed of.

Fixed assets are now deductible for input tax.

Reversal of the original provision for bad debts:

Debit: Provision for bad debts.

Credit: Asset impairment loss.

Reversal of the original write-off of bad debts: (when the previous bad debts are recovered).

Debit: Accounts receivable.

Credit: provision for bad debts.

Asset impairment losses are profit and loss accounts. Under the accounting method, the profit and loss accounts must be carried forward to the profit of the current year at the end of the month, and there is no balance after the carryover. Think about how to flush it back if you have no balance.

The calculation method of asset impairment loss is: asset impairment loss = book value of asset - recoverable amount of asset.

1. Asset impairment loss refers to the loss caused by the fact that the allowable amount of the asset is lower than its book value, that is, the difference between the book value of the asset minus the allowable amount of the asset. The new accounting standards stipulate that the scope of asset impairment is mainly the treatment of impairment of fixed assets, intangible assets and other assets of Tongxiao except for special provisions.

2. Accounting treatment of asset impairment losses.

1. If the recoverable amount of an asset is lower than its book value, the enterprise shall write down the book value of the asset to the recoverable amount, and the written down amount shall be recognized as an asset impairment loss, which shall be included in the current profit or loss, and the corresponding asset impairment provision shall be made at the same time.

2. The accounting entries for asset impairment losses are as follows:

1) Borrow: asset impairment loss.

2) Credit: provision for impairment of fixed assets, provision for impairment of intangible assets, provision for impairment of long-term equity investment, provision for impairment of investment real estate, etc.

3. The resources of the enterprise are the resources of the enterprise, including all kinds of property, creditor's rights and other rights. Generally speaking, it can be considered as an economic resource owned and controlled by an enterprise that can be measured in monetary terms and can bring economic benefits to the enterprise. In accounting, an important criterion for judging whether an asset can be recognized is whether the resource is owned or controlled by the unit, so as to draw a clear line between one's own assets and the assets of others.

The accounting content of asset impairment loss is as follows:

1. Provision for bad debts.

On the balance sheet date, if the receivables are impaired, the "credit impairment loss" account will be debited and the "bad debt provision" account will be credited according to the amount that should be written down. If the provision for bad debts accrued in the current period is greater than its book balance, it shall be accrued according to its difference; The difference between the accrued provision for bad debts and the book balance shall be reversed.

For the receivables that cannot be recovered, they shall be treated as bad debts after being approved by the management authority, and the receivables shall be resold and the "bad debt provision" account shall be debited and the accounts of "notes receivable", "accounts receivable", "prepaid accounts", "other receivables" and "long-term receivables" shall be credited.

If the receivables that have been confirmed and resold are later recovered, the accounts of "notes receivable", "accounts receivable", "prepaid accounts", "other receivables" and "long-term receivables" shall be debited and the "bad debt provision" account shall be credited according to the actual amount recovered; At the same time, the "Bank Deposits" account is debited, and the "Notes Receivable", "Accounts Receivable", "Prepaid Accounts", "Other Receivables", "Long-term Receivables" and other accounts are credited.

If the receivables that have been recognized and resold are recovered later, the "bank deposit" account can also be debited and the "bad debt provision" account can be credited according to the actual amount recovered.

2. Provision for inventory decline.

On the balance sheet date, if the inventory is impaired, the "asset impairment loss" account will be debited and the "inventory decline provision" account will be credited according to the difference between the net realizable value of the inventory and the cost. If the value of the inventory for which the provision for decline in value has been made is subsequently restored, the account for provision for decline in value of inventories shall be debited and the account for impairment loss on assets shall be credited to the account of impairment loss on assets according to the amount of the increase in the amount of the provision for decline in value of inventories.

If the provision for inventory decline is issued, the account of "provision for inventory decline in value" shall be debited, and the account of "cost of main business" and "cost of production" shall be credited. The credit balance at the end of the period of the account for inventory decline reflects the provision for inventory decline that has been accrued but not yet resold.

3. Provision for impairment of held-to-maturity investments.

On the balance sheet date, if the held-to-maturity investment is impaired, the "asset impairment loss" account will be debited and the "held-to-maturity investment impairment provision" account will be credited according to the amount that should be written down.

If the value of held-to-maturity investments for which impairment provisions have been made are later recovered, the "Held-to-maturity investment impairment provisions" account shall be debited and the "Asset Impairment Loss" account shall be credited to the "Asset Impairment Loss" account according to the amount of the original impairment provision that has been accrued. The account for impairment provision for held-to-maturity investments includes the credit balance at the end of the period, reflecting the impairment provision for held-to-maturity investments that have been accrued but not yet re-sold.

If the recoverable amount of an asset is lower than the book value, the nominal value of the asset shall be written down to the recoverable amount, and the amount written down shall be recognized as an asset impairment loss, which shall be included in the profit or loss for the current period, and the corresponding asset impairment provision shall be made at the same time. Accounting treatment of asset impairment losses.

If the recoverable amount of an asset is lower than its book value, the enterprise shall write down the book value of the asset to the recoverable amount, and the amount written down shall be recognized as an asset impairment loss, which shall be included in the current profit or loss, and the corresponding asset impairment provision shall be made at the same time. Borrow: asset impairment loss; Credit:

Provision for impairment of fixed assets, provision for impairment of intangible assets, etc. Once an asset impairment loss is recognized, it cannot be reversed in subsequent accounting periods.