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Anglicky v odbornch pedmtech"Support of teaching technical subjects in EnglishTutorial: Business Academy

Topic: Long-term assets acquisition, records, disposal

Prepared by: Ing. Jana ustrov

Projekt Anglicky v odbornch pedmtech, CZ.1.07/1.3.09/04.0002je spolufinancovn Evropskm socilnm fondem a sttnm rozpotem esk republiky.

When replacing existing equipment that is physically wornWhen exchanging out of date equipment (new technologies bring savings)When expanding production of already existing products (current capacity is insufficient)When introducing new products, expanding information into new marketsWhen concerning mandated investments e.g. Due to occupational health and safety (OHS), enviromental protectionWhen do we get new LTA?

purchaseown productiondonationtransfer from individual ownership of the businessmanassets deposit by partnersnew findings (in inventory)financial leasing

Acquisition methods of long-term assets

Financial leasing = leasing of the property based on the lease purchase contract and its repurchase. Tangible assets become companys property when it is fully paid up.Operational leasing = long-term lease, after its end the property is returned to the leasing company.Instalment sale = property acquisition under the purchase agreement. It becomes companys property immediately after signing the contract.Leasing

Property becomes fixed assets at the time of commissioning.If the property is put into use, it means the security of all technical functions required for use and fulfilment of all obligations imposed by legislation.For example the building, fire, environmental and hygiene regulations.When considering the property, the condition is satisfied by issuing the certificate of occupancy, land registration etc.Document permitting the use can be for example Protocol on the putting into use.

Classification of assets into use

Inventory cards or inventory bookMinimum content of inventory card:Name, property description, its numeral designationValuationDate and method of acquisitionData concerning method of depreciationDepreciation for each yearResidual priceDate and method of disposal

Record of fixed assets

Additional information:Depreciation group, annual rate or coefficientAccumulated depreciationModel SITC (Standard International Trade Classification)Serial number, asset number, license plate etc.Details of the technical evaluationProperty locationTechnical specifications capacity, loading capacity, dimensionsData concerning regular servicing

Sample of inventory card

Training of workers (machine operators, disruption avoidance, machine adjustment..)Regular maintenance (fuses or oil replacement..)RepairsIn terms of scale - regular - generalIn terms of execution time- preventive- subsequentCare for fixed assets

Disposal due to physical of moral depreciationSaleDonationTransfer to private ownershipTransfer to another companyAs a result of damage or theftWhen disposing, usable materials can be obtained parts, building materials, spare parts, etc.Disposal of fixed assets

By means of which ways is it possible to get fixed assets?When may the property be put into use?Name the card inventory requirementExplain the difference between financial and operative leasingWhich advantages and disadvantages do you find in financial leasing?Questions:

tohl, P. Uebnice etnictv 2011 2. dl pro stedn koly a pro veejnost. Znojmo: NAKLADATELSTV TOHL PAVEL ING. VZDLVAC STEDISKO,2011.ISBN 978-80-87237-36-6varcov J. a kol. Ekonomie -strun pehled, teorie a praxe aktuln a v souvislostech. Zln: TOPPEX, s. r. o., 2009. ISBN 978-80-903433-7-5Klnsk P., Mnch O. Ekonomika pro obchodn akademie a ostatn stedn koly . Praha: EDUKO nakladatelstv, s. r. o.,2008, ISBN 978-80-87204-03-0

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