1, the meaning
Disposal cost refers to the expenditures determined by the obligations of environmental protection and ecological restoration assumed by the enterprise in accordance with national laws and administrative regulations, international conventions, etc., such as the abandonment and restoration obligations of oil and gas assets, nuclear power plants and nuclear facilities.
2, how to account for
Special industry-specific fixed assets, therefore, the initial measurement of which should also take into account abandonment costs. And the amount of abandonment costs compared with its present value, usually a large difference, need to consider the time value of money. According to "Accounting Standard No. 13? -Contingencies‖, the amount to be included in the cost of fixed assets and the corresponding projected liabilities should be determined based on the calculation of the present value, and the interest expense determined based on the amortized cost of the projected liabilities and the effective interest rate over the useful life of the fixed assets should be included in the financial expenses.
3. The tax law provides
The abandonment costs thus expected to be incurred in the future are divided into two parts, principal and interest, and are recognized in profit or loss over the period of time during which the asset is held through two channels, i.e., depreciation and accrued interest. The tax law provides that the abandonment cost of fixed assets is not allowed to be deducted before tax in the period of accounting recognition, and can only be deducted against taxable income when actually paid, thus generating a temporary difference in the holding period of fixed assets.
4. Example
A certain enterprise belongs to a special industry, and purchased a set of specific equipment on January 31, 20?9, at a price of 1 million yuan, with a value-added tax (VAT) amount of 170,000 yuan. The estimated useful life is 5 years, the estimated net residual value is 0, depreciation is provided by the straight-line method, and the equipment was delivered in January. According to laws and regulations, the enterprise will dismantle the equipment after the expiration of its service life and remediate the pollution caused, for which the abandonment cost is expected to be 100,000 yuan.
Assuming that the effective interest rate is 6% and that the enterprise's applicable income tax rate is 25% required, calculate the present value of the abandonment cost, the annual depreciation, the table of interest sharing and income tax impact of the abandonment cost and the table of depreciation and income tax impact of the specific equipment based on the relevant information, and prepare the relevant accounting entries. (p/f, 6%, 5=0.747)
(1) Calculate:
Present value of abandonment costs == 100,000?0.747=74,700($)
Checked-in value of fixed assets = 1,000,000+74,700= 107,400($)
Annual depreciation = 107,470?5= 214940 (yuan)
Annual depreciation before tax deduction = 1000000?5 = 200000 (yuan)
(2) Accounting entries:
January 31, 20?9 when the purchase of a specific piece of equipment
borrowed: fixed assets? Specific equipment 1074700
Taxes payable? VAT payable (input tax on fixed assets) 170000
Credit: bank deposit 1170000
Projected liabilities? Abandonment expense 74700
When depreciation is charged on December 31, 20?9
Borrow: Manufacturing expense 197028(1074700?5?12*11)
Credit: Accumulated depreciation 197028
When interest on abandonment expense is charged
Borrow: Finance cost 4109(74700*6%? 12*11)
Credit: Projected liability? Abandonment expense 4109
Carrying forward the deferred income tax, the enterprise on the balance sheet date of December 31, 20?9, the book value of fixed assets 877672 yuan (1074700-197028), tax basis 816667 ((1000000-200000)?12*11) yuan, taxable temporary differences 61005 yuan, deferred Income tax liabilities $15,251; projected liabilities book value $78,809, tax basis 0, deductible temporary differences $78,809, deferred income tax assets $19,702.
The present value of abandonment costs is included in the cost of specific equipment, which is $13,695 more depreciated than the tax law, and $4,109 of interest on abandonment costs, which is not allowed as a pre-tax deduction under the tax law and is subject to income tax. Assuming that accounting profit and other adjusting matters (the same below) are not considered, the current income tax is:
Current income tax = (accounting profit? Adjustments)? Income tax rate = (0 + 13695 + 4109)?25% = 4451 (yuan)
Borrow: deferred income tax assets 19,702
Credit: deferred income tax liabilities 15251
Taxes payable? Income tax payable 4451