Fixed assets are non-monetary assets held by an enterprise for the production of products, the provision of labor services, leasing or business management, the use of more than 12 months, the value of which reaches a certain standard, including houses, buildings, machinery, machinery, means of transportation and other equipment, appliances, tools and other equipment 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.
From the point of view of purchased fixed assets for VAT input tax credit, fixed assets refer to:
1. machines, machinery, transportation tools, and other production-related equipment, tools, and appliances with a service life of more than one fiscal year;
2. items not belonging to the main equipment of the production and operation with a service life of more than two years. (The new accounting standards in 07 on the identification of fixed assets value limitations canceled, as long as the company believes that can be and the useful life of more than one fiscal year can be recognized as fixed assets, in accordance with a certain depreciation method of depreciation.)