a. Purchase according to safety or environmental protection requirements → Yes b. Each component has different life span/depreciation rate/depreciation method → ​​confirm separately c. Industrial enterprises hold it for more than one year, but the quantity is large and the price is low → inventory (cost-benefit principle)

Cost = price + tax (cannot be deducted) fee (before reaching the scheduled usable state)

Whether to install

Multiple fixed assets purchased at one time and not priced separately are allocated in proportion to their fair value.

Purchase fixed assets in installments (Nature of financing)

Self-operated

outsourcing

Investor investment

There is a disposal fee (happen in the future)

Principle: The revenue carried forward to the cost (current profit and loss) should not be offset and then offset against fixed capital costs or R&D expenditures.

Necessary expenditure/reasonable expenditure before completion → fixed capital cost; test whether it is operating normally → trial operation

Financial statement presentation: Daily activities "operating income" and "operating costs" items; non-routine "asset disposal income" items

Original price, estimated net residual value, impairment provision, service life

If the current month increases, the next month's withdrawal will be made; if the current month decreases, the current month's withdrawal will not be withdrawn; if the withdrawal is sufficient, no further withdrawal will be made; if it is scrapped in advance, no further withdrawal will be made; if the land is recorded separately, no further withdrawal will be made. No accrual will be made for renewal and renovation, but accrual will be made for regular overhauls; completion settlement will not be processed until the intended usable state is reached (refer to the above)

The expected consumption pattern that reflects economic benefits cannot be changed at will once determined.

straight line method

accelerated depreciation method (Principle of prudence, more prerequisites, less postulates)

Accounting treatment Debit: ~~ Credit: Accumulated depreciation

Review

Applicable to: improvement/renovation/expansion/renewal

The book value of fixed assets is reversely carried forward, that is, construction in progress → expenditures are transferred to construction in progress → transferred to fixed assets

replace

If it does not meet the conditions for capitalization of fixed assets, it will be included in the current profit and loss/other asset costs.

a. Disposal status: sale/transfer/scrap/destroy/foreign investment/non-monetary asset exchange/debt restructuring, etc.

b. No economic benefits are expected to be generated through application/disposal

General Principles: a. Sale/Transfer to Held for Sale: Follow Guideline No. 42 b. Undivided Profit and loss (asset disposal profit and loss/non-operating income/non-operating expenses) through "fixed assets liquidation" (unfavorable debit, favorable credit).

Fixed assets account value debit and clearing → Cleaning up expenses debit and clearing → Sale/remnant materials → Insurance compensation loan and clearing → Net profit and loss

Pan Ying

Loss