Fixed assets refer to assets with a service life of more than one year and a unit value exceeding the prescribed standard, and which maintain their original physical form during use, including buildings, machinery and equipment, transportation equipment, tools and appliances, etc.
In the balance sheet, in order to fully reflect the fixed assets of the enterprise, it is the "net fixed assets" after deducting the "accumulated depreciation" from the "original fixed assets" and then deducting the "fixed assets impairment reserve"; Engineering materials, projects under construction, fixed assets clearing, and "total fixed assets" and other items are listed.
"Original price of fixed assets", also known as the original value of fixed assets, refers to all reasonable and necessary expenses incurred by enterprises before the purchase and construction of fixed assets reach the usable state. The original value of fixed assets obtained from different channels is different. The system specifies the entry value of fixed assets from different sources and channels. If purchased, the original value shall be the actual purchase price, packaging fee, transportation fee, installation fee and related taxes paid; Self-built fixed assets, with the actual costs incurred in the construction process as the original value; Fixed assets invested by investors shall be regarded as their original value according to the value confirmed by investors; Fixed assets leased from financing, fixed assets obtained from inventory, fixed assets obtained from donation, fixed assets obtained from debt restructuring and fixed assets obtained from non-monetary exchange shall be specified. Although the property rights of the fixed assets rented by enterprises are not owned by enterprises, they are included in the scope of fixed assets of enterprises according to the principle that substance is more important than form in accounting. And in order to correctly reflect the amount of fixed assets leased by financing and analyze the assets of enterprises, the current accounting system requires that the item of "original price of fixed assets leased by financing" be listed in the supplementary information under the balance sheet.
The original price of fixed assets reflects the scale and production capacity of fixed assets of enterprises, which is convenient for analyzing the investment effect and utilization efficiency of fixed assets.
"Net value of fixed assets", also known as the depreciated value of fixed assets, is the balance after deducting accumulated depreciation from the original value of fixed assets. It reflects the undamaged value of fixed assets of enterprises, and compared with the original value of fixed assets, we can see the old and new degree of fixed assets. The fixed assets of an enterprise can participate in the production and operation activities for a long time, and still maintain the original physical form. However, with the use of fixed assets, their value gradually shifts to the products produced or constitutes expenses, and then the payment is recovered through the sales of products to make up for the costs and expenses, so that this part of the value loss can be compensated. The loss of fixed assets can be divided into tangible loss and intangible loss: tangible loss refers to the loss of use value and value of fixed assets due to the influence of use and natural forces; Intangible loss refers to the loss of fixed assets caused by scientific and technological progress. Depreciation of fixed assets refers to the part of the value of fixed assets that gradually disappears due to wear and tear in the use process. This part of the value should be amortized to form depreciation expenses within the effective service life of fixed assets and included in the cost of each period.
"Net fixed assets" refers to the balance of "net fixed assets" minus "provision for impairment of fixed assets". According to the Accounting System for Business Enterprises and Specific Standards for Fixed Assets, the fixed assets of an enterprise shall be measured according to the book value or recoverable amount at the end of the period, and the impairment reserve for fixed assets shall be accrued for the difference between the recoverable amount and the book value.
The "engineering materials" project mainly reflects the actual cost of engineering materials that have not been used in various projects of the enterprise, that is, the actual cost of various materials stored by the enterprise for the construction or repair of fixed assets projects of the enterprise.
"Construction in progress" refers to unfinished projects related to the purchase and construction of fixed assets, including new construction projects, reconstruction and expansion projects and major repair projects of fixed assets. In the balance sheet, this project mainly reflects the actual cost of unfinished projects at the end of the period, thus indicating the situation and scale of new construction, reconstruction and expansion, renovation and overhaul of fixed assets of enterprises. This project usually includes the value of the equipment that has been delivered and installed, the materials that have been consumed in the unfinished construction and installation project, and other related expenses, such as the wages of employees, the prepaid outsourcing project price, the completed but not delivered construction and installation project cost, etc.
"Liquidation of fixed assets" mainly refers to the scrapping and sale of fixed assets, the damage and loss of fixed assets caused by various irresistible natural disasters, and the transitional accounting subjects when fixed assets are reorganized and replaced with other non-monetary assets. The lender of this project mainly reflects the income in the process of cleaning up the fixed assets, and the borrower mainly reflects the costs, expenses and taxes in the process of cleaning up the fixed assets. When the cleaning process of fixed assets is not completed, the net income and net expenditure during the cleaning process of fixed assets are reflected in this project. If the fixed assets are cleared, the stones should be transferred to the net profit and loss after clearing, and there is no balance in the "fixed assets clearing" after carrying forward.