slide1
Download
Skip this Video
Download Presentation
Working with the AgFFA Record Book

Loading in 2 Seconds...

play fullscreen
1 / 21

Inventories of - PowerPoint PPT Presentation


  • 287 Views
  • Uploaded on

Working with the AgFFA Record Book A Resource for Online Users Developed by Kristie Weller, Undergraduate Technician, IMS-TAMU Reviewed by Larry Ermis, Curriculum Specialist, IMS-TAMU Inventories of Non-Current Assets Page 20

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Inventories of ' - betty_james


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Working with the

AgFFA

Record Book

A Resource for Online Users

Developed by Kristie Weller,

Undergraduate Technician, IMS-TAMU

Reviewed by Larry Ermis,

Curriculum Specialist, IMS-TAMU

what is an asset
What is an ASSET?

Any item you own that has value is an asset.

For your record book, an asset is any part of the business necessary to conduct the SAEP.

Any asset on hand at the end of the year AND placed in the closing inventory is considered PRODUCTIVELY INVESTED.

definition of non current asset
Definition of Non-Current Asset

Example:

-Beef cow for calf production.

-A tractor used for crop production

what is an inventory
What is an INVENTORY?
  • Answer: An inventory is an itemized list of all assets on hand on a specific date.
  • A normal inventory usually includes a description of the item(s) on hand and the quantity of each item.
  • For the purpose of a January-December record book:
    • List your SAEP assets on hand at the beginning and then at the end of the record book year.
    • Use two dates: January 1 and December 31 of each year. Beginning students use date entered ag class.
depreciable asset
Depreciable Asset

Depreciation is the decline in the value of a non-current item because of time and/or wear and tear.

An example of a DEPRECIABLE item is a tractor. A tractor loses value with each year that passes and with the wear from use. After 10 years, the tractor is no longer worth its acquisition cost (amount initially paid for it). Here’s an easy way to make sense of why non-current items depreciate. You don’t want to buy something used because it isn’t as good as something brand new. The same applies to agricultural equipment, buildings, and breeding animals. After you use them, they no longer are as valuable as they were when new.

slide10
Go to page 20, click “Select a Schedule,” and review the last FIVE schedules. Non-current assets will fit into these schedules.
items to enter in each schedule
Items to Enter in each Schedule
  • 1st: Select the enterprise to which the inventory asset pertains.
  • 2nd: Provide a description of the asset.
  • 3rd: For the Beginning Date or Ending Date column, enter the quantity and unit.
  • 4th: Enter the value of the asset at the inventory date.
  • For Sections F-H only: Enter the amount of depreciation, if any.
beginning date versus ending date
Beginning DateversusEnding Date
  • If you have an asset on hand at the beginning of the year, then the value and quantity go under the Beginning Date.
  • If you obtained the asset sometime during the year and it is on hand at the end of the year, then enter the closing value and quantity under Ending Date.
beginning date versus ending date14
Beginning DateversusEnding Date
  • EXAMPLE: In September you purchased a new tractor to use on your farm. This would be listed as an asset under “Investments in depreciable machinery, equipment, and fixtures” in the column for Ending Date come December 31. You will also list the tractor in the Beginning Date column for January 1 of the new year.
beginning date versus ending date15
Beginning DateversusEnding Date
  • For first year students, the beginning date may be the first day they enroll in the ag class.
  • For graduating students or students leaving the agriculture program, the ending date may be the last day they are enrolled in the ag class.
the fifth schedule is for non depreciable raised or grown draft pleasure or breeding animals
The fifth schedule is for non-depreciable (raised or grown) draft, pleasure, or breeding animals.

Example: You own a herd of Brangus cattle for breeding purposes. The cattle are often let out to graze. Your horses are used to bring the cattle in from the pasture daily. The horses are for draft or work purposes. The cost of upkeep of the horses is added to the beginning value of the horses for an Ending value.

NOTE: In this case, the horses were not purchased. They are non-depreciable because you raised them as offspring from your other horses.

schedule f is for depreciable purchased draft pleasure or breeding animals
Schedule F is for depreciable (purchased) draft, pleasure, or breeding animals.

Example: If you bought the horses used to bring the herd of cattle in from the pasture, then the horses would be depreciable. They are still draft horses, but you did not raise them as offspring from your other horses.

schedule g is for depreciable machinery equipment and fixtures
Schedule G is for depreciable machinery, equipment, and fixtures.

Example: You purchased a tractor for planting and harvesting the corn crop in the SAEP. The tractor cost $10,000.00. However, after being used for a year, the tractor is no longer worth its acquisition cost. You calculate the tractor’s worth on the Ending Date by determining how much it depreciated during the record book year.

schedule h is for depreciable land improvements building and fences
Schedule H is for depreciable land improvements, building, and fences.

Example: You wanted to keep your herd of cattle out of your corn field. You purchased 10 rolls of barbed wire to repair a fence. Because the wire will not last forever, it is a depreciable asset.

the last schedule is for land
The last schedule is for land.

Example: You own 50 acres of land used to grow corn. The value of the land is entered on the beginning date and ending date for each year. Land does not lose its value; only those improvements on the land do. Therefore, the land value on the Ending Date will be the same as the land value on the Beginning Date.

if you have questions about inventories
If you have questions about inventories . . .
  • . . . always check the “section instructions” if you are confused about what needs to be entered.
  • . . . ask your agriscience teacher for help.
ad