1, according to the economic use is divided into two categories of production and non-production business
Production fixed assets refers to the production and operation of the whole process of fixed assets, such as plant, machinery and equipment, warehouses, sales sites, transportation vehicles and so on.
Non-production fixed assets refers to fixed assets that do not directly serve the production and operation, but are used to meet the needs of the employees' material culture and living welfare, such as staff dormitories, canteens, nurseries, kindergartens, bathrooms, infirmaries, libraries, as well as scientific research and other aspects of the use of fixed assets such as housing, equipment and so on.
2, according to the use of the situation is divided into use, unused, not need to use three categories
Fixed assets in use refers to the enterprise is using a variety of fixed assets, including due to seasonal and major repairs and other reasons temporarily out of service and stored in the use of the department for replacement of machinery and equipment. Unused fixed assets refers to new fixed assets not yet put into use and approved fixed assets out of use. Unused fixed assets are those fixed assets that are not needed by the enterprise and are ready to be disposed of.
Specific Application of Recognition Conditions
If the components of fixed assets have different useful lives or provide economic benefits to the enterprise in different ways, and thus different depreciation rates or depreciation methods are applied, it indicates that these components actually provide economic benefits to the enterprise in a separate way, and therefore, the enterprise should recognize each component as a single fixed asset. For example, if the engine of an aircraft has a different useful life from the fuselage of the aircraft and is subject to different depreciation rates and depreciation methods, the enterprise should recognize it as a separate fixed asset.
Reference: Baidu Encyclopedia-Fixed Assets