What is accrual of payment value? – Accumulation is one of the mechanical terms in the business field. So what accumulation, how to determine accumulation? What is accrual of payment value? What is accumulated loss? When do we need to recognize an accumulated loss?
(Image: What is accrual of payment value?)
1/ Accumulation and accumulation of payment value
– Cummulative is the previously aggregated data that is included in the next calculation.
Watching: What is Accumulation?
How to determine accumulation: Accumulated = Incurred in the period + Accumulated in previous months
For example: The first quarter is 3 million, the second quarter is -2 million, the third quarter is 4 million, the fourth quarter is -1 million.
So the year accumulation is: 3 + (-2) + 4+ (-1) = 4 million dong.
Suppose, last month your business owes 6 million, next month owes 4 million. Total debt for both months combined is 10 million. So we call the debt of the previous month the accumulation of the next month.
– Accumulation of payment value includes 2 parts: accrual of advance payment and accumulation of payment of completed volume.
Accumulation of advance payment = Remaining contract advance value that has not been recovered by the end of the previous period – Discount on advance payment + Amount requested for payment this period
Accumulated payment of completed volume = Amount paid for completed volume to the end of the previous period + Discount on advance payment + Requested value for this period
⇒ Accumulated payment value = Accumulated advance payment + Accumulated payment of completed volume
You are viewing: What is Payout Accumulation?
2/ Accumulated loss
Accumulated loss is understood as a decline in asset value.
See also: What is Selenium – Lesson 1: Introduction to Selenium
An impairment in the value of an asset is understood as the amount recorded in the accounting records is more than the salvage value (real value) of that asset. When there is a decline in asset value, we need to recognize some accumulated losses.
Example: An enterprise purchases machinery and equipment used for production with a depreciation period of 5 years. However, by the third year, the asset is fully depreciated. Thus, we need to record accumulated losses, so that we can understand how the asset has been depreciated over the life of the asset, and the depreciation calculation method does not seem appropriate in many cases.
Accumulated loss = Book value of CGU – salvage value of CGU.
Where CGU is a block of money generating units
Note: If the salvage value of an individual asset cannot be calculated, the salvage value of the entire CGU should be calculated and the accumulated loss for the entire CGU should be calculated. The CGU’s accumulated loss must then be allocated to each asset.
See also: What is Bidv Bank – Bidv Bank’s name in English
Article: What is accrual of payment value?
You may be interested: Latest fixed asset depreciation time frame according to Circular No. 45/2013/TT-BTC dated April 25, 2013 of the Ministry of Finance.
