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Hydropower Assets The Choice Of Assessment Methods

Posted on:2003-11-13Degree:MasterType:Thesis
Country:ChinaCandidate:H R QianFull Text:PDF
GTID:2206360062980423Subject:Business Administration
Abstract/Summary:PDF Full Text Request
In order to raise funds for hydraulic power generation in the whole river valley, Hydroelectric Station B set up listed company A as sponsor in the ways of collection. Consequently, it is necessary to assess the assets of Hydroelectric Station B, with the assessment range of the assets and liabilities listed on the Balance Sheet on December 31st, 1999.As for the construction cost of hydroelectric station is largely determined by non-engineering factors, say, geological structure, location, transportation, river hydrology, transfer population, etc. while electricity fee mainly hinges on state policy, regional economy and construction cost. Hydroelectric Station B is the first big-scale hydroelectric station in its river valley, which was constructed in a valley elevated at over 4,000m surrounded by mountains covered by snow all the year around, with the conditions of prospecting, designing, and constructing very adverse. In addition, mountain roads are main transportation means, which are unfavorable factors inimitable with other domestic hydroelectric stations. Consequently, it was applied replacement cost method to the capital assessment of Hydroelectric Station B.In Hydroelectric Station B, the machine & equipment included in assets can be classified to key machines & equipments and other machines & equipments. Replacement total price of the key machines & equipments was composed of equipment fee, installation fee, other fee and capital cost; the depreciation was determined in the ways of engineering appraisal. Other machines & equipments included general equipment and vehicles; total replacement price of equipment need to install was composed of original price of equipment, freight and incidentals, installation fee and basic expense; the total replacement price of equipment need not to install was composed of original price of equipment, freight and incidentals; the total replacement price of vehicles was composed of new price, vehicles purchasing surcharge and other fee; the depreciation was revised mainly with straight-line method.The expense of hydraulic structure's main body was determined according to the actual price of local manpower, material, and construction machine, present method and quota of budgetary estimate, charging standard, specific project and construction amount constituting hydraulic structure, with the evaluation criterion date of December 31st, 1999, which was then amortized by other service expenses, such as temporary engineering supplementary expense, construction management fee, prospecting & designing fee, settlement allowance for reservoir migrates, capital cost, etc. The sum of expense above was the total replacement price ,with the comprehensive depreciation methods.The total replacement price of housing construction is determined according to the actual price of local manpower, material, and construction machine, present method and quota of budgetary estimate, charging standard, the specific state and construction amount of each construction with the evaluation criterion date of December 31st, 1999, with the of comprehensive depreciation methods.To assess the land occupation rights, it is necessary to classify land to the cultivated land and virgin soil, the price of cultivated land=(land occupation fee+ land primary development fee+ land occupation tax)×(1+capital interest rate+ capital profit margin); the price of virgin soil= (land occupation fee+ land occupation tax) × (1+capital interest rate+ capital profit margin).The current assets include cash, accounts receivable, other accounts receivable, prepaid accounts, and inventory. The real book value of cash after assessment is taken as the assessed value; the liquidity of accounts receivable, other accounts receivable, prepaid accounts and inventory on the criterion date of December 1st, 1999 is taken as the assessed value.The current liabilities include short-term debt, accounts payable, other accounts payable, payroll payable, benefits payable, tax payable, unpaid income, othe...
Keywords/Search Tags:Hydropower
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