ACCOUNTING CONCEPT~ @ 學術文化綜合研討區

House · 02-11-08, 05:53 PM

(1)I have kept my van in perfect condition,why we should charge something for depreciation
可以用邊種concept解釋
用CONSERVATISM?
to avoid overstatement the revenue of the business.so we should estimate the useful years for the asset and made a depreciation for the asset

ICil · 02-17-08, 10:27 PM

matching principle吧

Mtransfer · 02-18-08, 04:31 AM

Perfect condition means you don't use it ?

Designer · 02-18-08, 10:51 AM

自己簡

http://en.wikipedia.org/wiki/Categor...ing_Principles

Matching principle

In accounting, the matching principle indicates that when it is reasonable to do so, expenses should be matched with revenues. When expenses are matched with revenues, they are not recognized until the associated revenue is also recognized. For instance, wages paid to manufacturing workers are not recognized as expenses until the actual products are sold. When the products are sold, the expenses are recognized as cost of goods sold. Only if no connection with revenue can be established, cost can be charged as expenses to the current period (e.g. office salaries and other administrative expenses).

This principle allows better evaluation of actual profitability and performance (shows how much was spent to earn revenue), and reduces noise from timing mismatch between when costs are incurred and when revenue is realized

Accelerated depreciation

Accelerated depreciation refers to any one of several methods by which a company, for 'financial accounting' and/or tax purposes, depreciates a fixed asset in such a way that the amount of depreciation taken each year is higher during the earlier years of an asset’s life. For financial accounting purposes, accelerated depreciation is generally used when an asset is expected to be much more productive during its early years, so that depreciation expense will more accurately represent how much of an asset’s usefulness is being used up each year. For tax purposes, accelerated depreciation provides a way of deferring corporate income taxes by reducing taxable income in current years, in exchange for increased taxable income in future years. This is a valuable tax incentive that encourages businesses to purchase new assets.

02-11-08, 05:53 PM	#1
House God of Gamer 里村★紅葉註冊日期: Jun 2004 文章: 10,880 House544	ACCOUNTING CONCEPT~ (1)I have kept my van in perfect condition,why we should charge something for depreciation 可以用邊種concept解釋用CONSERVATISM? to avoid overstatement the revenue of the business.so we should estimate the useful years for the asset and made a depreciation for the asset __________________ グリザイアの果実 Sofmap Limited Edition GetOP 飛蘭終末のフラクタル Get グリザイアの果実 ED SONG+OST Get 周防天音! 此篇文章於 02-11-08 06:05 PM 被 House 編輯。

02-17-08, 10:27 PM	#2
ICil Crazy Gamer 註冊日期: Dec 2004 文章: 1,079	matching principle吧 __________________ ９コので　　ミュジック君が赤ラインとかさなったら　！君が赤ラインとかさなったら　！にば　ゲージがアップ！レーディ～　ゴゥゥーーーー！！！

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02-18-08, 04:31 AM	#3
Mtransfer Junior Member 註冊日期: May 2005 文章: 47	Perfect condition means you don't use it ?

02-18-08, 10:51 AM	#4
Designer Registered User 註冊日期: Feb 2004 文章: 8,580	自己簡 http://en.wikipedia.org/wiki/Categor...ing_Principles Matching principle In accounting, the matching principle indicates that when it is reasonable to do so, expenses should be matched with revenues. When expenses are matched with revenues, they are not recognized until the associated revenue is also recognized. For instance, wages paid to manufacturing workers are not recognized as expenses until the actual products are sold. When the products are sold, the expenses are recognized as cost of goods sold. Only if no connection with revenue can be established, cost can be charged as expenses to the current period (e.g. office salaries and other administrative expenses). This principle allows better evaluation of actual profitability and performance (shows how much was spent to earn revenue), and reduces noise from timing mismatch between when costs are incurred and when revenue is realized Accelerated depreciation Accelerated depreciation refers to any one of several methods by which a company, for 'financial accounting' and/or tax purposes, depreciates a fixed asset in such a way that the amount of depreciation taken each year is higher during the earlier years of an asset’s life. For financial accounting purposes, accelerated depreciation is generally used when an asset is expected to be much more productive during its early years, so that depreciation expense will more accurately represent how much of an asset’s usefulness is being used up each year. For tax purposes, accelerated depreciation provides a way of deferring corporate income taxes by reducing taxable income in current years, in exchange for increased taxable income in future years. This is a valuable tax incentive that encourages businesses to purchase new assets.