Accounting entries for book value measurement of non-monetary assets exchange
For example, Company A exchanges its long-term equity investment in the joint venture Company C for the trademark right owned by Company B..
the accounting treatment of company a is as follows:
borrowing: intangible assets-trademark rights
taxes payable-value-added tax payable (input tax)
impairment reserve for long-term equity investment-equity investment of company c
lending: long-term equity investment-accounting treatment of company c
company b is as follows:
borrowing: long-term equity investment.
Long-term equity investment is a long-term investment made by an enterprise to acquire the equity of another enterprise, which is usually held for a long time and is not ready to be realized at any time.
foreign long-term equity investment shall be accounted by cost method or equity method respectively, depending on the degree of influence on the invested entity.
the "long-term equity investment" account belongs to the asset account, which is used to account for all kinds of equity investments invested by small enterprises with a term of more than one year (excluding one year), including purchased stocks and other equity investments, etc., and a detailed account should be set up according to the invested unit for detailed accounting.
when obtaining long-term equity investment, the actual cost should be taken as the investment cost, and the debit balance at the end of the period reflects the book balance of long-term equity investment held by small enterprises.
what is the tax payable?
"Taxes payable" accounts for various taxes payable by enterprises according to the provisions of the tax law, including but not limited to value-added tax, consumption tax, income tax, urban maintenance and construction tax, property tax, education surcharge, personal income tax and travel tax.
the "tax payable" account belongs to the liability account, and detailed accounts should be set according to the taxes payable, such as "value-added tax payable", "local education surcharge", "land value-added tax", "deed tax" and "urban maintenance and construction tax" for detailed accounting.