中级财务会计(双语)第四章PPT资料.ppt

1、the cost of inventories may not be recoverable.The value of the inventories drop below their historical cost.Inventory valuecostImpairment of InventoriesHow do we know we have an impairment of inventories?如何判断存货存在减值迹象？Impairment is incurred:If those inventories are damaged 被损坏被损坏If inventories have

2、become wholly or partially obsolete 部分或全部过时部分或全部过时If their selling prices have declined 市价下跌市价下跌If the estimated costs of completion or the estimated costs to be incurred to make the sale have increased.估计的完工成本估计的完工成本或或估计的销售费用估计的销售费用上上涨涨Impairment of InventoriesWhen the impairment of inventories has

3、 incurred,we use LCM method to measure the inventories.LCM method:lower-of-cost-or-market method（成本与市价孰低法成本与市价孰低法）Compare cost with current market valueMarket valueCostInventory value=MVCostMarket valueInventory value=costImpairment is incurred.Impairment is not incurred.How to use LCM methodWhat is

4、 the“cost”?“Cost”refers to the“cost of ending inventory”How to calculate the“cost of ending inv.”?“Cost of ending inventory”is calculated by specific identification,average cost,FIFO,LIFO method which were discussed in Chapter 3How to use LCM methodWhat is the“market value”?“Market value”refers to t

5、he“Net realizable value（NRV）”of inventories.How to calculate the“NRV”?Inventories held for sale 持有以备出售的存货持有以备出售的存货Such as finished goods（also called merchandising inventory）NRV=estimated selling price disposal costs 可变现净值可变现净值=估计售价估计售价处置成本处置成本（销售费用及相关销售费用及相关税费税费）How to use LCM methodHow to calculate

6、 the“NRV”?Inventories held for use in the production 持有持有用于生产的存货用于生产的存货Usually they are raw materials or work-in-process.Also called manufacturing inventory.NRV=estimated selling price estimated costs of completion disposal costs 可变现净值可变现净值=估计售价估计售价至完工时估计将要发生的成至完工时估计将要发生的成本本处置成本处置成本（销售费用及相关税费销售费用及相关

7、税费）ExerciseP167 E4-2（1）Calculate the NRV for each product.（2）Determine the inventorys value for each product by applying the LCM method.ExerciseP167 E4-2Only the Product 2 is impaired.ProductNRVCostLCM134202028090803605050Adjusting Cost to MarketWhen a company uses the LCM method to value inventorie

8、s（if inventory valuecost）,a write-down（减值减值）of inventory is required.Dr.Loss on write-down of inventory（存货减值损失存货减值损失）Cr.Inventory valuation allowance（存货跌价准备存货跌价准备）ExerciseP167 E4-2Only the Product 2 is impaired.ProductNRVCostLCM134202028090803605050ExampleImpairment loss of Product 2=90-80=10Dr:Loss

9、 on write-down of inventory 10 Cr:Inventory valuation allowance 10Applying LCM methodThe LCM method can be applied to individual inventory items,logical inventory categories,or the entire inventory.市价与成本孰低法可以应用于市价与成本孰低法可以应用于个别存货项目个别存货项目、存货组合存货组合或或者者整体存货整体存货。Usually:use LCM method on individual inven

10、tory item 通常对单个存货项目计提减值通常对单个存货项目计提减值Under certain circumstances:use LCM method on logical inventory categories or the entire inventory 在某些特殊情况下，对存货组合或整体存货在某些特殊情况下，对存货组合或整体存货计提减值计提减值Applying LCM methodSuppose we have five inventory items:A,B,C,D,E.ItemCostMarket value（NRV）A50,00065,000B100,00090,000C

11、80,00065,000D90,00056,000E95,00086,000Applying LCM methodItems A-B and items C-E are two collections of similar items that can be considered as two logical inventory categories.Item AItem BItem CItem DItem EInventory category Inventory category Applying LCM methodUse LCM to determine the inventory v

12、alue.Three applications:1.Apply LCM method to individual inventory item.ItemCostNRVInventory valueA50,00065,00050,000B100,00090,00090,000C80,00065,00065,000D90,00056,00056,000E95,00086,00086,000Total415,000347,000Adjusting Cost to MarketWrite-down of inventory =415,000-347,000=68,000Dr.Loss on write

13、-down of inventory 68,000 Cr.Inventory valuation allowance 68,000Applying LCM method2.Apply LCM method to logical inventory categories.ItemCostNRVInventory valueA50,00065,000B100,00090,000A+B（）150,000155,000150,000C80,00065,000D90,00056,000E95,00086,000C+D+E（）265,000207,000207,000Total415,000357,000

14、Adjusting Cost to MarketWrite-down of inventory =415,000-357,000=58,000Dr.Loss on write-down of inventory 58,000 Cr.Inventory valuation allowance 58,000Applying LCM method3.Apply LCM method to the entire inventory.ItemCostNRVInventory valueA50,00065,000B100,00090,000C80,00065,000D90,00056,000E95,000

15、86,000Total415,000362,000362,000Adjusting Cost to MarketWrite-down of inventory =415,000-362,000=53,000Dr.Loss on write-down of inventory 53,000 Cr.Inventory valuation allowance 53,000Applying LCM methodCompare three applications:1.Apply LCM to individual inventory item,Inventory value=$347,0002.App

16、ly LCM to logical inventory categories,Inventory value=$357,0003.Apply LCM to the entire inventory,Inventory value=$362,000Applying LCM to groups of inventory items will usually cause a higher inventory valuation than if applied on an item-by-item basis.用用“市价与成本孰市价与成本孰低法低法”对存货组合对存货组合（或整体存货或整体存货）计算出的存货价值会高于计算出的存货价值会高于对单个存货计算出的存货价值。对单个存货计算出的存货价值。Exercise1.Determine the amount of the im