How To Define Fixed Assets

[question]

Under the accounting standards of enterprises, fixed assets do not have the boundary of the standard of amount. Instead, they determine the amount of fixed assets according to the specific circumstances of enterprises, and no longer exceed the standard of more than 2000 yuan.

[answer]

"Accounting standards for Enterprises No. fourth - fixed assets" stipulates that in order to facilitate the application and operation of this criterion, the following questions are explained:

I. characteristics and conditions for confirmation of fixed assets

The third, fourth provision of this standard specifies the characteristics and conditions of confirmation of fixed assets.

The third fixed assets provisions of accounting standards for Enterprises No. fourth - fixed assets refer to tangible assets with the following characteristics:

(1) held for the purpose of producing goods, providing services, leasing or operating management;

(two) the useful life is more than one accounting year.

Service life refers to the estimated period of enterprise's use of fixed assets, or the quantity of products or services provided by the fixed assets.

Only when fourth fixed assets meet the following conditions can they be confirmed:

(1) the economic benefits related to the fixed assets are likely to flow into the enterprise;

(two) the cost of the fixed assets can be measured reliably.

"Accounting standards for Enterprises No. first - inventory" third stipulates that inventories refer to the finished products or commodities that are held for sale in daily activities, and materials and materials consumed in the production process, in the production process or in the process of providing labor services, in the production process.

The fourth rule is that inventories meet the following conditions at the same time:

(1) the economic benefits related to the inventory are likely to flow into the enterprise;

(two) the cost of the inventory can be measured reliably.

Accounting subjects and main accounting treatments

1411 turnover material

1. This subject calculates the planned cost or actual cost of the enterprise turnover materials, including packaging, low value and easily consumed products, and steel formwork, wood formwork, scaffolding, etc. of the enterprise (construction contractor).

The twenty-first provision of the enterprise income tax law stipulates that when calculating the taxable income, the enterprise's financial and accounting treatment methods are not consistent with the provisions of the tax laws and administrative regulations, and the tax shall be paid according to the provisions of the tax laws and administrative regulations.

The fifty-seventh provision of the regulations on the implementation of the enterprise income tax law stipulates that the fixed assets mentioned in the eleventh section of the enterprise income tax law refer to non monetary assets held by enterprises for the purpose of producing products, providing services, leasing or operating management, and for more than 12 months, including houses, buildings, machinery, machinery, pport means, and other equipment, utensils and tools related to production and operation activities.

According to the above regulations, the tangible assets that your company has purchased for more than a year with a price of less than 100 thousand should be fixed assets. If they do not meet the requirements of fixed assets, they should be included in the enterprise's "inventory" project and cannot be charged at a time.