The exchange of non monetary assets refers to the exchange of non monetary assets, such as fixed assets, intangible assets and long-term equity investment, between the two parties to the transaction. What should be written in the accounting entries for the exchange of non monetary assets?
Accounting entries for exchange of non monetary assets
1. For the exchange of non monetary assets measured at fair value, the assets surrendered shall be treated as the same as the assets disposed, and the assets received shall be recorded at fair value.
Debit: inventory goods/fixed assets/intangible assets, etc. (fair value)
Tax payable - VAT payable (input tax)
Credit: income from main business/disposal of fixed assets/intangible assets, etc
Profit and loss on asset disposal (difference between book value and fair value of fixed assets or intangible assets surrendered, or debit)
Tax payable - VAT payable (output tax)
Bank deposits, etc
2. For the exchange of non monetary assets measured at book value, the assets received shall be measured at the book value of the assets surrendered.
Debit: inventory goods/fixed assets/intangible assets, etc. (backward squeeze)
Tax payable - VAT payable (input tax)
Credit: inventory goods/disposal of fixed assets/intangible assets, etc
Tax payable - VAT payable (output tax)
Bank deposits, etc
What are intangible assets?
Intangible assets refer to identifiable non monetary assets without physical form. Intangible assets can be divided into broad and narrow senses. The broad sense of intangible assets includes monetary capital, financial assets, long-term equity investment, patent rights, trademark rights, etc., because they do not have physical entities, but are represented by certain legal rights or technologies. However, in accounting, intangible assets are generally understood in a narrow sense, that is, patents, trademarks, etc. are called intangible assets.
Intangible assets can be recognized only when they simultaneously meet the following conditions:
1. The economic benefits related to the intangible assets are likely to flow into the enterprise;
Items recognized as intangible assets must meet the condition that the economic benefits of their production are likely to flow into the enterprise. Because the most basic feature of assets is that the economic benefits generated are expected to flow into the enterprise. If the economic benefits generated by a project cannot flow into the enterprise, they cannot be recognized as assets of the enterprise. In accounting practice, to determine whether the economic benefits created by intangible assets are likely to flow into the enterprise, it is necessary to make a reasonable estimate of various economic factors that may exist in the expected service life of intangible assets, and there should be clear evidence to support it.
2. The cost of the intangible assets can be measured reliably.
The self created goodwill and internally generated brands, newspaper names, etc. of enterprises should not be recognized as intangible assets because their costs cannot be reliably measured.
Accounting entries for exchange of non monetary assets
Company A borrows: fixed assets - equipment 1.8 million yuan Bank deposit 200000 yuan Accumulated depreciation 30 Asset impairment provision 30 Credit: fixed assets - equipment 220 non business income 40 Hope to help you!
How to make accounting entries for fixed assets exchanged from non monetary assets?
The book value of fixed assets shall be transferred to the fixed assets for clearing, and those with impairment reserves shall be transferred to the fixed assets for clearing
Debit: disposal of fixed assets
Accumulated depreciation
Fixed assets depreciation reserves
Credit: fixed assets
In case of real estate, business tax shall be paid, and VAT output tax shall be paid in exchange for equipment
Debit: disposal of fixed assets
Credit: Taxes payable - VAT output tax (or business tax payable)
The value of the assets received=the fair value of the assets surrendered+the output tax payable on the assets surrendered+the premium paid (or - the premium received) - the deductible input tax on the assets received+the relevant taxes on the assets received
Debit: assets received (non monetary assets)
Credit: disposal of fixed assets
Non operating income (debit difference is counted as non operating expenditure)