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What Is Asset Group?

2011/1/24 15:22:00 61

(1) the concept of the asset group, "enterprise accounting standard eighth - asset impairment" Application guide defines the asset group as: "

Assets

A group is a minimum asset portfolio that an enterprise can identify, and its cash flow should be basically independent of other assets or assets.

The asset group shall consist of related assets that create cash inflows ".

The concept includes three basic meanings:

First, the asset group consists of multiple assets.

common

Create cash inflows;

The two is that asset group is based on independent cash flow, and international accounting standard is called "cash output unit".

The three is to determine that the purpose of independent cash flow is to prepare for asset impairment.

(two) the identification of the asset group, "accounting standards for Enterprises No. eighth - asset impairment" stipulates: "asset group identification should be based on asset group.

produce

Is the main cash inflow independent of other assets or the cash flow of the asset group? "

Therefore, whether the asset group can generate cash inflow independently is the key factor to identify the asset group.

For a certain production line, business site and business department of an enterprise, if it can independently generate revenue from other departments or units and generate cash inflows, or the vast majority of the income and cash flow people created are independent of other departments or units and belong to the smallest asset portfolio that can be identified, the production line, business outlets and business departments should be identified as an asset group.

"Enterprise Accounting Standards No. eighth - asset impairment" Application guide stipulates: "the production of several assets of a combination of products (or other outputs) exists in the active market. Whether these products or other outputs are for external sale or for internal use only, it is indicated that the combination of these assets can create cash inflow independently, and these assets should be identified as assets group".

At the same time, the guidelines also stipulate: "when determining the asset group, we should take into account the way in which the management of the enterprise manages production and business activities (such as production lines, business types, regions or regions, etc.) and the decision making methods for the continuous use or disposal of assets."

For example, each production line of an enterprise is produced independently, managed and monitored. Then, each production line is likely to be identified as a separate asset group; if some machine and equipment are interrelated and interdependent, their use and disposal are integrated decisions, then these machines and equipment are likely to be identified as an asset group.