Seven Problems That Should Be Clarified In Fixed Assets Accounting

First, it is necessary to clarify that rental buildings are not fixed assets.

According to the definition of fixed assets, the purpose of holding fixed assets is to produce goods, provide services, rent or manage, that is, fixed assets held by enterprises are labor tools or means of enterprises, rather than products for sale.

Among them, the "rental" fixed assets refer to the fixed assets of the machinery and equipment which are rented by the enterprise in the way of operating lease, which does not include the buildings that are leased by operating lease, and the latter belongs to the investment real estate of the enterprises. They are not fixed assets, so they do not adopt the standard method of fixed assets standards.

The purchase of fixed assets by a company usually pays within the normal credit term. However, there will also be economic activities that purchase fixed assets over normal credit terms, such as the purchase of fixed assets by installment payment, and the payment period stipulated in the contract is longer, exceeding the normal credit conditions.

In this case, the purchase contract is essentially a financing nature, and the cost of purchasing fixed assets can not be determined by the sum of the payments of each period, but should be determined by the sum of the current value of each period's payment.

The present value of the purchase price of a fixed asset shall be determined according to the price paid at each period and the appropriate discount rate should be chosen to make the amount after discounting.

The discount rate is the interest rate that reflects the current market money time value and the specific risk of deferred payment debt. In essence, the discount rate is essentially the necessary rate of return of the supplier, the difference between the actual sum paid in each period and its present value.

If capital conditions are met before reaching a predetermined usage state, the fixed assets shall be included in the construction work.

The rest shall be recognized as financial expenses during the credit period and shall be included in the profits and losses of the current period.

When purchasing fixed assets, they will debit "fixed assets" or "construction jobs" according to the present value of the purchase price, and credit the "long-term payable" subjects according to the amount payable, and borrow the subject of "unrecognized financing charges" according to their balance.

Three, we should clarify the problem of the uniqueness of the method of safety production fee extracted by high-risk enterprises according to the state regulations.

The safety production fees extracted by high-risk enterprises according to the state regulations shall be included in the cost of relevant products or profits and losses in the current period, and shall be recorded in the "special reserve" subject.

If the enterprise uses the extracted safety production fee to form a fixed asset, it shall recognize the expenditure incurred through the collection of the "construction work type" subject, and it shall be regarded as a fixed asset when the completion of the safety project reaches a predetermined and applicable state.

At the same time, in accordance with the cost of forming fixed assets to reduce specific reserves and confirm the accumulated depreciation of the same amount, the fixed assets will no longer be depreciated in the future period.

The fixed assets of inventory surplus, as a mistake in the previous stage, should be accounted for before the approval of the management authority is approved. It should be calculated through the "prior year profit and loss adjustment" subjects, and the fixed assets should not be checked against the fixed assets of the inventory losses.

Five, we should clarify the issue that the cost of disposal is included in the cost of fixed assets.

Abandonment charges should also be considered when determining the initial cost of a particular industry in a particular industry.

Abandonment expenses usually refer to the expenses determined by obligations such as environmental protection and ecological restoration undertaken by enterprises according to national laws and administrative regulations and international conventions, such as the abandonment and restoration of environmental obligations of nuclear facilities such as nuclear power plants.

The amount of the abandonment fee is usually larger than its present value. The time value of money needs to be considered. For the specific fixed assets of these special industries, the enterprises should deal with the relevant provisions of the contingency rules, and determine the amount of gold that should be included in the cost of fixed assets and the corresponding projected liabilities according to the current value calculation.

The interest expense calculated according to the amortized cost and the actual interest rate of the projected assets shall be included in the financial cost when the fixed assets are used. When the fixed assets of the general industrial and commercial enterprises occur, the cost of the discarding and cleaning up shall not be regarded as abandonment fees, and shall be disposed of as fixed assets disposal expenses at the time of occurrence.

Six, we should clarify the problem of replacing the exact cost of fixed assets.

Some subsequent expenditures of fixed assets may relate to the replacement of a part of the original fixed assets. When subsequent expenditures meet the conditions for confirming the fixed assets, they should be included in the cost of fixed assets.

At the same time, the book value of the replacement part will be deducted, so that the cost of the replacement part and the cost of the replacement part will be avoided to be included in the cost of the fixed assets at the same time, which will lead to the inaccuracy of the fixed assets cost.

Seven, we should clarify the problem of different disposal of net loss of fixed assets.

After the completion of the liquidation of the fixed assets, the net loss should be differentiated from the different causes and be dealt with differently.

It is a normal processing loss during production and operation. It debit "non operating expenses - disposal of non current assets losses" and credits "fixed assets liquidation" subjects.

During the production and operation period, due to natural causes such as natural disasters, debit "non operating expenses - very loss" subjects, credited "fixed assets clearance" subjects.

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