The classification and code of fixed assets of the Ministry of Finance are shown below
Fixed assets refer to non-monetary assets held by enterprises for the purpose of production of products, provision of labor services, leasing or business management and used for more than 12 months, with the value of a certain standard, including houses, buildings, machinery, machinery, means of transportation and other equipment, appliances, and tools related to production and business activities. .
Fixed assets are the means of labor of the enterprise and the main assets on which the enterprise relies for production and operation. From the accounting point of view, fixed assets are generally categorized as fixed assets for production, fixed assets for non-production, leased fixed assets, unused fixed assets, unwanted fixed assets, fixed assets under finance leases, fixed assets under donations, and so on.
Expanded:
I. Conditions for derecognition of fixed assets
Fixed assets shall be derecognized if they satisfy one of the following conditions:
(1) the fixed assets are in the state of disposal;
(2) the fixed assets are not expected to generate economic benefits through their use or disposal.
II. Treatment of Fixed Asset Disposals
(1) Fixed assets held for sale by an enterprise shall be adjusted for their estimated net residual value.
(2) When an enterprise sells, transfers, or scraps fixed assets or incurs damage to fixed assets, it should recognize the disposal proceeds, less the book value and related taxes, in the current profit and loss. The book value of a fixed asset is the amount after the cost of the fixed asset is deducted from accumulated depreciation and accumulated impairment allowance.
(3) Where an enterprise includes in the cost of fixed assets subsequent expenditure incurred on fixed assets, it shall derecognize the carrying value of the replaced part.
Baidu Encyclopedia-Fixed Assets