Fixed assets include plant and equipment; transportation equipment; intangible assets; and other fixed assets.
1, plant, equipment.
Refers to the buildings, equipment, machinery, etc. purchased by the enterprise. Plant is one of the fixed assets used for production, operation as well as management of the enterprise, usually refers to the buildings used for production, processing, warehousing and other activities, its function is mainly to provide production sites, facilities and equipment required to protect production, etc..
2, transportation equipment.
Transportation equipment refers to the fixed assets of enterprises for the transportation of goods and people, mainly including highway traffic facilities, railroads, waterways and air transport facilities.
3, intangible assets.
Refers to trademarks, patents, copyrights and other intangible property. Intangible assets are an important part of the value of the enterprise, providing a long-lasting competitive advantage and making the enterprise more competitive. In corporate financial reporting, intangible assets should be included in the balance sheet of an enterprise according to their actual value in order to assess the assets and economic value of the enterprise.
4. Other fixed assets.
He fixed assets are other items owned by the enterprise that are not easily realizable, such as cultural and recreational facilities, educational equipment, medical equipment and so on. Other fixed assets require enterprises to carry out investment planning, budgeting, selection, procurement, maintenance and other management work.
Introduction of Fixed Assets:
Fixed assets refer to materials used and retained by an enterprise for a certain period of time, used in production and other business activities. Fixed assets are not usually realized immediately, but are converted into earnings for the business through gradual consumption and depreciation.
Enterprises need to carry out investment planning, budgeting, selection, procurement, transportation, installation, testing and other processes when acquiring fixed assets. Effective asset management, such as regular inspection, maintenance and renewal of fixed assets, is also required to ensure their stable operation and to safeguard the daily production and management activities of the enterprise.
In the financial report of the enterprise, fixed assets need to be included in the balance sheet of the enterprise according to their actual value, in order to assess the value of the enterprise's assets and financial status. At the same time, they need to be depreciated year by year, and their gradual depletion will be transformed into the income of the enterprise, and at the same time, provide tax incentives for the enterprise to enjoy.
Fixed assets are characterized by large investment, long-term use period, not easy to realize, diminishing value, etc. Enterprises need to reasonably manage and maintain these assets to ensure that they meet the needs of the company's production and management activities.