The original value of fixed assets is the "original value of fixed assets", also known as the "original cost of fixed assets", "original acquisition cost" or "historical cost". "Historical cost". The original value of fixed assets reflects the investment in fixed assets and the enterprise's production scale, equipment level. It is also the basis for accounting for fixed assets and calculating depreciation. After the acquisition of fixed assets, the purchase price of fixed assets plus transportation and miscellaneous expenses, installation costs, etc., recorded in the fixed asset account constitutes the original value of fixed assets; in the fixed assets recorded in the accounts of the next month to start, monthly depreciation, recorded in the cumulative depreciation account, the difference between the original value of fixed assets minus cumulative depreciation constitutes the net value of fixed assets. The original value of fixed assets is the amount of the original acquisition of fixed assets in the books, and the net fixed assets is the result of the original value of fixed assets minus accumulated depreciation. Expressed in a formula, the former is the subtracted amount and the latter is the difference. Under the historical valuation method, the original value of fixed assets is the book value of fixed assets embodied in the accounts, which may include some of the costs incurred in the purchase of the fixed assets, such as brokerage fees, contract costs and so on. Of course, it also includes the value of the fixed assets themselves. Each fixed asset in the accounts when the enterprise will be in accordance with accounting principles to estimate a fixed asset life, as well as the residual value of the disposal, the original value minus the residual value and then divided by the life of the number of years, that is, each year should be depreciated. (Under the straight-line depreciation method), at the end of the year accounting should be the original value minus the depreciation, the figure is the net value of fixed assets.
The original value of fixed assets is generally the original cost of acquiring fixed assets, that is, the original book value of fixed assets. Enterprise depreciation of fixed assets, to the beginning of the month should be depreciated on the basis of the original book value of fixed assets, an increase in the month of fixed assets, not depreciated in the month; the month of the reduction of fixed assets, depreciated in the month. Net fixed assets = original fixed assets - accumulated depreciation? The salvage value is the estimated value that can be recovered in the future, usually the salvage rate is 5% or 10%. Whether it is productive fixed assets or non-productive fixed assets, the type of asset is different, the asset acquisition method is different.