Asset Management: Fixed Assets Recognition And Measurement
I. concept of fixed assets
Fixed assets refer to tangible assets with the following characteristics:
1. held for the production of goods, services, rental or operation and management.
2. the useful life is more than one accounting year.
Two. Confirmation of fixed assets
Fixed assets can be recognized at the same time satisfying the following two conditions:
1. the economic benefits contained in the fixed assets may flow into the enterprise.
2. the cost of the fixed assets can be measured reliably.
Concern:
(1) assets such as environmental protection equipment and safety equipment should also be recognized as fixed assets.
(2) if each component of a fixed asset has different life expectancy or provides economic benefits to enterprises in different ways, so that different depreciation rates or depreciation methods can be applied, it should be recognized as fixed assets separately.
Three. Measurement of fixed assets
The measurement of fixed assets is divided into initial measurement and measurement.
Subsequent measurement
。
Fixed assets should be initially measured in accordance with the cost, and the fixed assets cost that has been accounted for is also called the original value of fixed assets.
1. outsourcing
fixed assets
Cost accounting
Including the purchase price, the relevant taxes and charges, the pportation expenses, loading and unloading fees, installation fees and professional service fees that may be attributable to the assets before the fixed assets reach a predetermined usage state.
Concern:
To purchase a number of fixed assets without a separate bid, the total cost shall be allocated according to the fair value ratio of various fixed assets, and the cost of each fixed asset shall be determined separately.
Concern: installment purchase of fixed assets:
If the purchase price of a fixed asset exceeds the normal credit terms, such as the payment of deferred payment (such as installment purchase of fixed assets), and in essence, it has the nature of financing, the current value of the purchase price of the purchased fixed assets shall be debited according to the "fixed assets" subject or "in construction" subject, and the term "long-term payable" shall be credited according to the amount payable, and the "unrecognized financing charge" subject shall be debited according to its difference.
Borrowing: fixed assets (or in construction projects) (the present value of purchase price)
Unconfirmed financing charges
Loan: long term payable (total purchase price)
Amortization of unrecognized financing cost per period = initial balance of principal payable * real interest rate
(balance at the beginning of the long term - the initial unrecognized financing cost balance) * real interest rate.
Concern: abandonment charges
Abandonment expenses refers to expenses such as the abandonment of nuclear power plant facilities and the restoration of environmental obligations under the obligations of environmental protection and ecological restoration undertaken by enterprises in accordance with national laws and administrative regulations and international conventions.
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