Accounting for impairment of assets between the accounting and tax treatment of the accounting

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Accounting for impairment of assets between the accounting and tax treatment of the accounting Powered By Docstoc
					Impairment of assets accounting and tax treatment of different accounting accounting

 impairment accounting treatment

  1, asset impairment and found
  in accounting treatment, impairment of assets, the recoverable amount of assets is
less than its book value. Its assets include individual assets and asset groups. Asset
Group, an enterprise can be found in the smallest group of assets, its cash flows
should be largely independent of other assets or cash flows generated by the asset
group. Enterprise should determine the balance sheet date whether there is possible
impairment of assets signs. Formed by the merger of enterprises goodwill and
indefinite life intangible assets, regardless of whether such evidence exists, should be
tested for impairment annually.
  of the following signs that the impairment of assets may occur: 1. Substantial current
market value of assets has declined significantly higher than that due to the passage of
time or normal use is expected to decline; 2. Firms operate economic, technical or
legal environment and the market in the period in which the assets or to major
changes in the near future, so on the business negatively; 3. market interest rates or
other market rates of return in the current Yijing increase, thereby affecting the
enterprise computing assets, present value of expected future cash flows discount rate,
resulting in a significant reduction in the recoverable amount of assets; 4. There is
evidence that assets are obsolete or have been damaged by that entity; 5. assets have
been or will be idle, end the use of or ahead of schedule disposal; 6. Internal report,
evidence that the asset's economic performance has been below or will be lower than
expected, as the assets created by the realization of the net cash flow or operating
profit (or loss) is far below (or above) is expected to amount, etc.; 7. Other assets that
may have signs of impairment.
  in the tax treatment, according to "Enterprise Income Tax Law," Article VIII, the
actual occurrence of and access to business-related income, reasonable expenses,
including costs, expenses, taxes, losses and other expenses in the calculation of
taxable the amount of net income. Assets may have occurred in the signs of
impairment, but no actual loss of assets, the tax is not recognized as asset impairment,
does not allow the calculation of taxable income deductions; only the assets of the
loss actually occurs, meet the tax law requirements, approval of tax losses can only be
identified as to allow the calculation of taxable income deductions. Enterprise Income
Tax Law does not use the concept of the asset group.
  2, the recoverable amount of assets measured
  in accounting treatment, there is indication of impairment of assets, it shall estimate
the recoverable amount. The recoverable amount should be based on the fair value of
assets minus the costs of disposal of assets is expected to net present value of future
cash flows determined between higher. Disposal costs include legal costs related to
disposal of assets, related taxes, handling charges and may sell the asset for its state of
the direct costs that occur. The fair value of assets minus the net costs of disposal,
should be based on fair trade in a sale agreement price less direct costs attributable to
the disposal of assets to determine the amount. There is no sale agreement but an asset
is an active market, it shall be in accordance with the asset's market price less costs of
disposal to determine the amount. Assets generally should be based on market prices
of assets bid price. In the absence of asset sales agreements and the case of an active
market should be to get the best information available based on the estimated fair
value of assets minus the net costs of disposal, the net assets can refer to the same
industry, similar to the most recent transactions price or estimated results. Enterprise
accordance with the above requirement is still not reliably estimate fair value of assets
minus the net costs of disposal, should be estimated future cash flows of the assets of
the current value as its recoverable amount.
  in the tax treatment, according to "Enterprise Income Tax Law" Article VI, corporate
monetary and non-monetary forms of income from various sources, as total revenue,
including the transfer of property income; 16th provides enterprise transfer of assets,
the net assets and transfer fees in the calculation of taxable income can be deducted.
Therefore, the measurement of the asset's recoverable amount is based on the actual
transfer of property to recover the amount of measurement.
  3, the determination of asset impairment losses and tax adjustments
  in accounting treatment, the recoverable amount of the measurement results show
that the asset's recoverable amount is lower than its book value, book value of assets
should be reduced of dollars to its recoverable amount, less the amount of total
recognized as an asset impairment loss through profit and loss, while the
corresponding provision for impairment of assets. Impairment loss is recognized, the
impairment of assets, depreciation or amortization expenses in future periods should
be adjusted accordingly, so that the assets remaining useful life, systematically
assessed the adjusted book value of assets (net of salvage) . Asset impairment loss is
confirmed, can not be reversed in subsequent accounting period.
  in the tax treatment, according to "Enterprise Income Tax Law," Article X (7)
provides that, in calculating the amount of taxable income without the approval of the
reserve fund expenditures are not deductible. Enterprises in accordance with the
provisions of the guidelines provision for impairment of assets for impairment of
fixed assets, impairment in construction, real estate investment impairment, intangible
assets, goodwill impairment, impairment of long-term equity investment , the
production of biological asset impairment, and, should be tax adjustment, not through
profit and loss, not in the enterprise income tax deductible, should be adjusted to the
current period taxable income. Enterprises have extracted the impairment of assets, if
the declaration of tax increase when adjusted taxable income, before impairment
allowances can extract the tax base to determine the deductible amount of
depreciation or amortization. If the provision for the impairment of the asset due to
asset disposal, sale, foreign investment, the method of assets to non-monetary
exchange out in satisfaction of debt restructuring debt, back to the impairment of
assets, in accordance with the accounting standards The provision should be included
in profit or loss, and increase the total profits of enterprises; in accordance with the
tax law, companies have extracted impairment of assets, if the tax return has been
adjusted by taxable income, impairment loss reversal should allow businesses for tax
adjustments, provision for impairment of the original tune by the time of the part of
taxable income, in the back, because of the value of total profit to restore and increase
the current amount, recovery period is not included in taxable income.
  4, goodwill impairment of processing
  in accounting, the company formed by the merger of goodwill, at least at the end of
each year should be tested for impairment. Goodwill should be combined with the
assets associated with groups or combinations of asset groups to impairment testing.
Enterprise asset impairment testing, the formation of a business combination for the
carrying value of goodwill, shall be the date of purchase method in accordance with
reasonable share to the relevant asset group; hard assets apportioned to the relevant
groups, should be apportioned to the relevant The asset groups. In the group of
underlying assets include goodwill or asset groups for impairment testing, goodwill
associated with assets such as group or combination of asset groups indication of
impairment exists, it should be first on the goodwill of the assets does not include
group or asset group combination of impairment testing, calculation of recoverable
amount, and compared with the related book value, the impairment loss. Again
contains the goodwill of the asset group or combination of asset groups to conduct
impairment testing, compare the relevant asset group or combination of asset groups
book value (including the share of the carrying value of goodwill) to its recoverable
amount, unless the relevant asset group or a combination of asset groups recoverable
amount less than its carrying value, goodwill impairment loss should be recognized.
  in the tax treatment, according to "Enterprise Income Tax Law," Article XII, in the
calculation of taxable income, the company calculated in accordance with the
provisions of amortization of intangible assets may be deducted; but Goodwill does
not allow deduction . Goodwill as intangible assets in the tax law treatment,
purchased goodwill expenses, transfer or liquidation of the enterprise as a whole, the
allowed deduction. Normally, the tax basis of goodwill shall not be adjusted; goodwill
without combining the assets of groups or associated group of portfolio asset
impairment testing; business in accordance with the guidelines for asset impairment
of goodwill impairment losses recognized for tax adjustments should not be included
current profits and losses, not income tax deductible in the. / center>

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