Tugas 1. Transaksi Entitas Induk dan Anak : Aset Tetap

Summary

This lecture covers the accounting treatment of fixed asset transactions within a business group, specifically focusing on sales between parent and subsidiary companies. Key concepts include the realization of profit or loss from the sale of depreciable and non-depreciable assets, and the elimination of unrealized profits or losses during the consolidation process. The lecturer discusses various scenarios, illustrating how these transactions are accounted for depending on the timing of the sale. Students are instructed to summarize the topic for non-depreciable assets and prepare for an upcoming assignment on depreciable assets.

Takeaways

• 😀 Transactions between parent and subsidiary companies often involve the sale of fixed assets like land, buildings, machinery, and vehicles.
• 😀 Fixed assets are categorized as either depreciable (e.g., buildings, machinery) or non-depreciable (e.g., land), and they are treated differently in accounting.
• 😀 Depreciable assets lose value over time, while non-depreciable assets like land do not decrease in value.
• 😀 Profits or losses from asset sales between related entities (parent to subsidiary or vice versa) must be recorded and adjusted for in consolidated financial statements.
• 😀 Unrealized gains or losses from asset sales within the group must be eliminated in consolidated financial statements until the asset is sold outside the group.
• 😀 When an asset is sold within the group, profits or losses are not recognized in the consolidated statements until the asset is sold to an external third party.
• 😀 The elimination journal for unrealized profits ensures that the financial statements reflect only realized profits or losses from intra-group transactions.
• 😀 For non-depreciable assets like land, the gain or loss is realized only when the asset is sold to an external party.
• 😀 Depreciable assets like machinery and buildings recognize their profit or loss immediately upon sale, even if sold within the group.
• 😀 Multiple scenarios for asset sales between related entities (same year transactions, delayed sales, and prior year sales) were illustrated, each requiring different accounting treatments.

Q & A

What are the two main types of fixed assets discussed in the transcript?

The two main types of fixed assets discussed are depreciable and non-depreciable assets. Depreciable assets include items like buildings, machinery, and vehicles, while non-depreciable assets include land.

How are non-depreciable fixed assets, such as land, treated in intercompany transactions?

Non-depreciable fixed assets, like land, are not subject to depreciation. Their gains or losses are realized only when the asset is sold to an external party, not when sold between entities within the same corporate group.

What happens when an asset is sold between a parent company and a subsidiary within the same group?

When an asset is sold between a parent company and a subsidiary, the gain or loss from the transaction is not immediately recognized in the consolidated financial statements. It must be eliminated to avoid overstating profits until the asset is sold to an external party.

What is the key difference between the treatment of depreciable and non-depreciable assets in intercompany transactions?

The key difference is that for non-depreciable assets, such as land, the gain or loss is recognized only upon disposal to an external party. For depreciable assets, like machinery or buildings, the gain or loss is recognized at the time of sale or use.

In the case of a sale of land between a parent and subsidiary, when is the gain on the sale recognized?

The gain on the sale of land between a parent and subsidiary is not recognized until the land is sold to an external party. This is because, within the same corporate group, the gain is considered unrealized.

What are the steps to eliminate intercompany profits or losses in consolidated financial statements?

Intercompany profits or losses are eliminated by making journal entries to remove any gains or losses that were realized within the corporate group. This ensures that the consolidated financial statements reflect only transactions with external parties.

What should be the accounting treatment if the sale of an asset occurs in different years (e.g., parent sells asset to subsidiary in one year and subsidiary sells to an external party in the next)?

If the sale occurs in different years, the parent company must defer the gain or loss in the current year, as the asset has not yet been sold to an external party. The deferred gain is recognized once the asset is sold outside the group.

How does the sale of land by the parent company (PTP) to the subsidiary (PTS) impact the consolidated financial statements if both transactions occur in the same year?

If both transactions occur in the same year, the gain recognized by PTP is not eliminated because the asset is sold to an external party by PTS. There is no need for an elimination journal entry in this case.

In the scenario where the parent company sells land to the subsidiary, but the subsidiary sells it externally in the next period, how should the gain be treated in the consolidated accounts?

In this scenario, the gain recognized by the parent company on the sale of land to the subsidiary is deferred, as the asset has not yet been sold to an external party. The gain is deferred until the subsidiary sells the land to an external party.

What happens if the parent company recognizes a gain on a sale of land to the subsidiary, but the subsidiary does not sell the land externally until the next year?

In this case, the parent company must make a journal entry to defer the gain, which is recorded as 'unrealized profit' in the consolidated financial statements. The asset is reflected at its original purchase price in the consolidated accounts until the sale to an external party happens.