For the disposal of investment real estate, the accounting treatment principles are:
The disposal income actually received is included in other business income, and the carrying amount of the investment real estate disposed of is included in other business costs.
If you haven't remembered it clearly, you may instantly think of the disposal of fixed assets and intangible assets, and the profit or loss on disposal is directly included in non-operating income and expenditure on a net basis.
It's the same disposal, why is there such a big difference?
The core point is:Whether it is a daily business activity.
Specific standards are built on the basis of higher-level principles and frameworks, so if you want to understand the standards thoroughly, you must go one step further and look at the accounting principles and frameworks.
Accounting principles tell us:
Revenues are generated from ordinary business activities and are recognized on the aggregate basis;
Gains arising from non-ordinary business activities are recognized on a net basis.
What is the gross method and what is the net method?
The gross method recognizes revenue and costs separately, while the net method recognizes only net profit or loss.
For example, the company sells an item that costs 100 and sells it for 150:
Revenue 150 is recognized under the gross amount method, and costs are recognized at the same time 100;
Under the netting method, the gain is 50 directly.
The question of how to deal with the disposal becomes a question of judging whether the disposal of investment real estate, fixed assets, and intangible assets is a daily activity.
Let's think about it again, what is the original intention of enterprises to purchase fixed assets and intangible assets?
Sell it for fun?Of course not, it is for daily production and operation, and it is for long-term use to obtain benefits, which is a long-term choice thinking, and it is a long-term line to catch big fish, so the disposal is accidental, accidental, and non-daily activities.
So what is the original intention of a company to buy investment real estate?
It is to rent it out and collect rent or wait for it to appreciate.
This is a short-term thinking, it is to wait for the price and sell, it is not thinking about using it for itself at all, but just wants to decorate it and sell it at a good price, then the disposal is no longer an accident, and it is no longer an accident, that is one of the naked purposes.
At this moment**, it is to sell better in the future.
Thus, the same is the disposal, because because the intentions of the business are different, whether they belong to the daily activities is also different.
Fixed assets Intangible assets are like affordable men, which are used for living, and separation (disposal) is an accident and is not an ordinary day;
Investment real estate is like a scumbag, only the fate of meeting in Pingshui, and getting together is also for better separation, separation (disposal) is the norm, and it is a daily routine staged from time to time.
Therefore, the disposal of fixed assets and intangible assets is recognized using the net method, while the disposal of investment real estate is recognized using the gross method.
The gross amount method is used to recognize revenue and costs separately, and the money from disposal and sale is included in "other business income", and the book value of investment real estate is included in "other business costs".
There may be Lao Tie who has to get to the bottom of it again, why is it "other business income" and "other business costs", instead of "income" and "cost"?
Hehe, housing is not speculation, and the companies that tinker with investment real estate are not doing business, which is at most a side business, not the main job, in order to distinguish it from the main job, add a "other".
Welcome to give me a quality triple: like + watching + **
ps：
The knowledge points of accounting are endless, very detailed and complicated, rote memorization is to carve the boat for the sword, and the understanding of the logic and principles behind it is to respond to all changes without change.
For a certain knowledge point, the rote memorization method is undoubtedly the fastest, after all, it is over after reading and reciting it a few times.
However, for a large number of knowledge points, rote memorization will be inadequate, and the knowledge points of accounting are not only many, but also extremely easy to confuse, and the result of memorizing wrong or not memorizing.
I understand the pain of rote memorization, the helplessness of not reading for three days and a blank mind, and the tiredness of being crazy about memorizing and doing questions and not being able to pass the exam, so after getting the CPA certificate, I try to read the principle behind the boring knowledge, so that everyone can understand it in understanding, instead of forgetting it as soon as it is learned, and it will be abandoned as soon as the exam is lost.