AASH are those economic resources which:
. Are controlled by the entity as a result of actions performed in the past;
. The unit expects to receive benefits in a period of next no longer than 12 months from the date of
An asset element must be recognized as AASH (circulating) when:
. It is possible that future economic benefits will come in the company (within 12 months from the day of construction of PF);
. Asset cost can be measured reliably.
It is those short-term assets that appear in the form of cash and their equivalents.
. Monetary assets are those resources that are near the unit or located in banking or financial institutions.
The entity must keep separate accounts for it presented the condition and movement of the MM in the cash register from that of
MM in banks.
Evidence of the conditions and movements of the Mode that the unit has near various banks is done by opening accounts accounting for each of these bank accounts in it the same bank and / or in different banks.
The unit must keep the cash books to record
MM movements at the checkout.
At the end of the day, the cashier will have to make a statement
MM at the checkout, which should be the same as the condition of physical money.
For the organization of the administration of funds in cash register unit must follow the control rules of previously clarified interiors.
Incoming cash is valued at the value that is collected at the entrance.
MM equivalents – with input costs which is the value of right of consideration (resources) given in return.
MM exit estimate – at their historical cost.
MM balance sheet estimation – at their cost. Usually not adjustment is required in addition to updating the course exchange
Equivalent Balance Assessment – with fair value of their, usually due to the short term this value how much their historical value is taken.
A short-term financial asset is a short-term asset which presented in the form of cash, a right contractual to receive MM or other financial assets from another unit (customers, debtors, bank deposits), or an instrument of debt or capital of another entity
(IASH in Bono / shares).
They are classified into the following main groups: Drat Customer rights;
DA Rights to DA; drift Rights to third parties not related to the sale; drift Rights from short-term investments in securities; direct .The right to short-term loans;
. Rights born of regulatory actions.
Customers – the right to sell goods, products and subsequent collection services
Estimation at the time of entry = cost, is the value of goods or services sold at the collection of later.
Main value = price – commercial discount – financial discount
In the balance sheet they will be estimated at depreciated cost, if value their initial minus the decrease in value occurred during the time of keeping them (receipts) as well as minus reducing the value for the amount of bad debt.
The initial excess of LLA at the beginning of the period (2019) was 1,000,000 ALL, credit sales during the year 6,000,000 ALL, returns and discounts 10%, u collected ALL 4,900,000 and ALL 100,000 were deductions for payment of fast, 2% of the remaining unpaid amount is provided bad debt.
Show the value presented in the balance sheet for LLA at the end of 2018 and 2019
Unpaid customers amount to “Bad Debt” or “uncollected rights” and constitutes a loss or cost of selling on credit.
Determining bad debt can be done with several methods:
Direct method = bad de facto debt
Forecast method (%) (Example of banks)
There are two accounting methods for recording bad debt:
Total (gross) method
Linda Company predicts that 10% of total customers from
1,000,000 ALL that are unpaid in the balance sheet dated 31
December 2019, have no hope of collection. Next year, the company collects 30,000 ALL from customers provided as such difficult to collect and deregisters the rest of the customers.
Customers expressed in foreign currency:
At the entrance – with the exchange rate of the date of operation;
At the exit – with the course of the entry or closing date;
In the balance sheet – with the closing rate (PF date).
Differences will be recorded in the result (MES).
Random (possible) liability in relation to DA
In the case of the sale of receivables, the holder of it is connected to the bank (its buyer) with one an obligation called a random obligation. It will be called
Random obligation any potential obligation that may turns into real if an event occurs e
When assets become unusable, outside the will of the entity economic, due to damage or extinction by fire, earthquake, flood, theft, etc., the unit deregisters them from accounting records, with residual value. At the same time she must reflect as income the amount collected of insurance of assets. The resulting difference between them is reflected, according to the case presented, as an expense or as income of the period. Example:
On November 20, 2019 it goes out of use, due to fire damage, an initial machine worth 210,000 ALL.
Depreciation accumulated over the life of the machine is 50,000 led. Depreciation until the date of issue is calculated to be 10,000 led. So the VKN that this machine carries is 150,000 ALL. The company is rewarded by the insurance company only in the amount of 60,000 ALL. In this case the loss = 90,000 ALL.
– An asset that is registered in the account when it.