Accounting entry of fixed assets abandonment fee:
Borrow: fixed assets; Loan: Construction in progress (actual construction cost)
Estimated liabilities (present value of abandonment costs); Debit: financial expenses (estimated liabilities at the beginning of the period amortized cost × actual interest rate)
Loans: estimated liabilities; Borrow: estimated liabilities; Loan: bank deposit (when abandonment expenses occur)
The general industrial and commercial fixed assets scrapping and cleaning expenses are not scrapped expenses, but should be treated as fixed assets disposal expenses.
Abandonment cost, also known as abandonment cost, ARO (Asset Retirement Obligation), usually refers to the expenses determined by enterprises' obligations of environmental protection and ecological restoration according to national laws, administrative regulations and international conventions, such as the obligations of abandonment and restoration of nuclear facilities of nuclear power plants and oil exploration facilities.
accounting treatment
1. fixed assets accounting
Determine the amount of obligations to be waived in the future, and convert it into the current present value. The present value and the acquisition cost of fixed assets are included in the original value of fixed assets, and depreciation is accrued together with fixed assets.
Example: The acquisition cost of fixed assets is 65,438+000,000 yuan, and the abandonment cost after 65,438+00 years is 65,438+00,794.60. At the interest rate of 8%, calculate the present value PV (I/Y =10,8%, PMT = 0, Fv =-10,794.60) = 5000.
Debit: fixed assets 10.5 million; Loan: bank deposit100000; Estimated liabilities-abandonment fee of 5000.
2. Calculate the accrued interest of each period.
After obtaining the fixed assets with scrapping obligation, interest expense shall be accrued every year. Continue with the example above. At the end of each year, the accrued interest expense is the book value of the estimated liabilities at the beginning of the year multiplied by the interest rate.
In the above example, the interest expense at the end of the first year is 5000×8% = 400, and the entries are as follows:
Debit: financial expenses-interest 400; Loan: Estimated Liabilities-Abandonment Expense 400
At the end of the second year, the accumulated abandonment expense is 5000+400 = 5400, and the accrued interest expense is 5400×8% = 432.
Borrow: financial expenses-interest 432; Loan: estimated liabilities-abandonment expenses 432; And so on until the end of 10.
3. Actual occurrence and treatment
Debit: estimated liabilities-abandonment fee10,794.60; Loan: bank deposit10,794.60.