PV of face amount
PV of interest collections (Periodic interest x PV of an annuity of 1)
PV at initial recognition
Outstanding face amount
Add: Unamortized Premium or
Less: Unamortized Discount
Amortized cost
Principal amount
Add: Origination fees received
Less: Direct origination cost
Initial measurement
Carrying amount of long-term receivable
Future cash inflows
Times: PV factor using original effective interest rate
Less: Present value of expected future cash flows at date of impairment testing
Impairment loss
Outstanding principal amount at date of impairment testing
Add: Unpaid interest (only if recognized by the entity)
Carrying amount
Outstanding principal amount at date of impairment testing
Add: Unamortized premium or
Less: Unamortized Discount
PV value at date of impairment testing
Add: Unpaid interest (only if recognized by the entity)
Carrying amount
Outstanding face value
Less: Allowance for loan impairment
Net Carrying amount
AR - assigned, end
Less: Related liability balance
Equity in assigned accounts
Gross AR
Less: Factoring fees and charges
Net selling price
Gross AR
Less: Allowance for doubtful accounts
Less: Carrying amount of AR
Gain or loss on factoring
Net selling price
Less: Allowance for doubtful accounts
Cash received from factoring
Proceeds
Less: Carrying amount of AR
Gain or loss on discounting
PV of face amount
PV of interest collections (Periodic interest x PV of an annuity of 1)
PV at initial recognition
Outstanding face amount
Add: Unamortized Premium or
Less: Unamortized Discount
Amortized cost
Principal amount
Add: Origination fees received
Less: Direct origination cost
Initial measurement
Carrying amount of long-term receivable
Future cash inflows
Times: PV factor using original effective interest rate
Less: Present value of expected future cash flows at date of impairment testing
Impairment loss
Outstanding principal amount at date of impairment testing
Add: Unpaid interest (only if recognized by the entity)
Carrying amount
Outstanding principal amount at date of impairment testing
Add: Unamortized premium or
Less: Unamortized Discount
PV value at date of impairment testing
Add: Unpaid interest (only if recognized by the entity)
Carrying amount
Outstanding face value
Less: Allowance for loan impairment
Net Carrying amount
AR - assigned, end
Less: Related liability balance
Equity in assigned accounts
Gross AR
Less: Factoring fees and charges
Net selling price
Gross AR
Less: Allowance for doubtful accounts
Less: Carrying amount of AR
Gain or loss on factoring
Net selling price
Less: Allowance for doubtful accounts
Cash received from factoring
Proceeds
Less: Carrying amount of AR
Gain or loss on discounting
xxx Downpayment xxx
xxx Less: Present value of cash inflows
xxx Face value x PV of 1 xx
Periodic interest x PV of ordinary
xx (xxx)
annuity
Sales price xxx
xxx
xxx Downpayment xxx
Less: Present value of cash inflows (Periodic
(xxx) (xxx)
payment x PV or ordinary annuity)
xxx Sales price xxx
xxx Principal xxx
xxx Add: Direct origination costs xxx
(xxx) Less: Origination fee (xxx)
xxx Initial carrying amount xxx
Incremental sales Pxx
xxx Incremental costs
xxx VC Pxx
xxx Incremental fixed costs xx
(xxx) Opportunity costs xx (xx)
xxx Incremental profit/loss Pxx
Sales Pxx
VC (xx)
CM xx
Direct Fixed Costs (xx)
xxx Segment margin xx
xxx Indirect or Allocated Fixed Cost (xx)
xxx Operating income Pxx
Cost of replacement product Pxx
Less: NRV of defective product, if any (xx)
xxx "Loss" to be absorbed by the entity Pxx
xxx Add: Handling costs shouldered by the entity xx
Total warranty cost per unit of replacement
(xxx) Pxx
product
xxx
xxx
xxx
xxx
(xxx)
xxx
xxx
(xxx)
xxx
xxx
(xxx)
xxx
xxx
(xxx)
(xxx)
xxx
xxx
(xxx)
xxx
xxx
(xxx)
xxx
Relevant costs to make Relevant costs to buy
Variable manufacturing cost Purchase price
Variable handling cost Variable handling cost
Avoidable fixed FOH Freight costs
Avoidable non-manufacturing costs
Opportunity cost
Allocation to sold goods = Transaction price x
Allocation to warranty = Transaction price x
Stand-alone selling price of goods sold
Total of stand-alone selling prices of goods sold and warranty
Stand-alone selling price of warranty
Total of stand-alone selling prices of goods sold and warranty
PV of cash inflows xx
Less: PV of cash outflows (xx)
NPV Pxx
PV of cash inflows xx
Less: PV of cost of investment (xx)
NPV Pxx
PV of cash inflows xx
Less: Cost of investment (xx)
NPV Pxx
Relevant costs to make Relevant costs to buy
Variable manufacturing cost Purchase price
Variable handling cost Variable handling cost
Avoidable fixed FOH Freight costs
Avoidable non-manufacturing costs
Opportunity cost
Allocation to sold goods = Transaction price x
Allocation to warranty = Transaction price x
Stand-alone selling price of goods sold
Total of stand-alone selling prices of goods sold and warranty
Stand-alone selling price of warranty
Total of stand-alone selling prices of goods sold and warranty