capital and revenue expenditure accounting.pptx

This power point contains contents of classification of different accounting expenditures. they are capital and revenue expenditure.

1. 2024/9/2 Capital and Revenue Expenditure

2. 目录 Classification of Assets Learning Objectives Revenue Expenditure I II III IV Capital Expenditure V Treatments

3. Classification of assets Capital Expenditure Revenue Expenditure Difference between capital and revenue expenditure Incorrect statement of expenditure Capital and Revenue Receipts Learning Objectives I

4. 流动资产 (Current Assets)：指企业在一年内能够变现或消耗的资产，如货币资金 cash、短期投资 short-term investment、应收账款 account receivable、预付款项 prepayment、存货 inventory等。 非流动资产 (Non-current Assets)：指企业在一年以上能够变现或消耗的资产，如长期投资 long -term investment 、固定资产 fixed assets、无形资产 intangibles、长期股权投资等。 投资性房地产 (Investment property)：指企业为获得租金、增值或待售而持有的房地产。 生产性生物资产 (Biological assets) ： 指企业持有的用于生产的动植物资产。 资产分类 I I

5. When a business spends money to buy or add value to a non-current asset. It is incurred when a business spends money either to: - buy non-current asets 购买 非流动 资产 - add to the value of an existing non-current asset 改良 非流动 资产 资本性支出是指购买 非流动 资产或进行资产改良的支出，这些支出可以增加企业的生产能力或延长固定资产的使用寿命。 Included in such amounts should be spending on: - acquiring non-current asset brininging them into the business legal costs of buying buildings carriage inwards on machinery bought - any other cost needed to get a non-current asset ready for use Capital Expenditure I I I

6. Expenses needed for the day to day running of the business. Expenditure which is not spent on increasing the value on non-current assets, but is incurred in the running the business on a day to day basis 费用性支出则是指用于日常经营活动的支出，如销售费用、管理费用、财务费用等 。此类支出并不会增加固定资产的 价值。 Revenue Expenditure I I I

7. Example The difference between revenue expenditure and capital expenditure can be seen clearly with the total cost of using van for a business. Buying a van is an example of capital expenditure. Paying for petrol to use in the van is revenue expenditure. Capital and Revenue Expenditure I I I

8. Example The difference between revenue expenditure and capital expenditure can be seen clearly with the total cost of using van for a business. Buying a van is an example of capital expenditure. Paying for petrol to use in the van is revenue expenditure. Capital and Revenue Expenditure I I I