What is included in the daily management of fixed assets

Fixed assets mainly include houses, buildings, machinery, machinery, means of transportation, as well as other equipment, appliances and tools related to production and business activities. Fixed assets are non-current assets of the enterprise, is the enterprise to carry out normal production and operation activities necessary material conditions, its value with the enterprise production and operation activities gradually transferred to the product cost. The safety and integrity of fixed assets directly affects the sustainable development of the production and operation of the enterprise.

Enterprises should be based on the characteristics of fixed assets, analyze, summarize, design a reasonable business process, find the weak links in the management, improve the overall risk management and control measures to ensure that the fixed assets are safe, intact and efficient operation. Fixed assets business process, usually can be divided into obtaining, acceptance and transfer, routine maintenance, renewal and renovation and elimination of disposal and other five links.

(A) Fixed Assets Acquisition

Fixed assets involve outsourcing, self-construction, and non-monetary asset exchange. Production equipment, means of transport, buildings, office furniture and office equipment and other different types of fixed assets have different acceptance procedures and technical requirements, the same type of fixed assets will also be due to its degree of standardization, technical difficulties and other differences in the acceptance of different requirements. Generally speaking, the acceptance process of fixed assets with a high degree of standardization, such as office furniture, computers and printers, is more simplified, and a set of standardized and strict acceptance system is required for some complicated large-scale production equipments, especially customized hi-tech precision instruments, as well as for the acceptance of the completion of buildings. The main risks in this link are: irregularities in the acceptance procedures for new fixed assets may lead to asset quality not meeting the requirements, thus affecting the operation of the assets; an inadequate fixed asset insurance system may lead to failure to insure the assets that should be insured, and ineffective claiming of compensation, which may not be able to effectively guard against the risk of loss of assets.

Major control measures:

1. Establish a strict fixed asset delivery and acceptance system. Enterprises purchasing fixed assets should accept the varieties, specifications, quantities, quality, technical requirements and other contents of the purchased fixed assets according to the contract, the supplier's delivery note, etc., issue the acceptance sheet and prepare the acceptance report. Fixed assets constructed by the enterprise itself should be constructed by the construction department, the fixed asset management department, the use of the department **** with the filling out of the fixed asset transfer acceptance form, acceptance and transfer to the use of the department put into use after passing the acceptance. Unqualified assets that have not passed the inspection and acceptance shall not be accepted, and must be returned or exchanged or other remedial measures must be handled in accordance with the relevant provisions of the contract. For assets with proof of ownership, there must be a legal certificate of ownership at the time of acquisition.

2. Emphasize and strengthen the fixed assets insurance work. Enterprises should take into account the situation of fixed assets, according to their nature and characteristics, to determine and strictly enforce the scope of fixed assets and insurance policy. The insured amount and insured items strive to appropriate, should be insured fixed assets project according to the prescribed procedures for approval, for insurance procedures, standardize the insurance behavior, to cope with the risk of loss of fixed assets. For the insurance of major fixed asset projects, consideration should be given to adopting the bidding method to determine the insurer and prevent fixed asset insurance fraud. In case of loss of insured fixed assets, timely investigation of the cause and the amount of damage will be carried out, and the relevant claim procedures will be carried out with the insurance company.

(2) Asset registration

Each fixed asset acquired by an enterprise needs to be registered in detail, prepare a fixed asset catalog, and establish a fixed asset card to facilitate statistics, inspection and follow-up management of fixed assets. The main risk of this link is that the incomplete content of the fixed asset registration may lead to asset loss, distortion of asset information and discrepancy between accounts and facts.

Major control measures:

1. According to the definition of fixed assets, combined with its actual situation, develop a fixed asset catalog suitable for the enterprise, listing fixed asset number, name, type, location, department of use, responsible person, quantity, book value, service life, wear and tear, etc., which is conducive to the enterprise to understand the full picture of the use of fixed assets.

2. According to the establishment of a single asset fixed asset card, asset card should be in the asset number and fixed asset catalog to maintain a correspondence, detailed records of the source of each fixed asset, acceptance, use of the location, the responsible unit and the responsible person, operation, maintenance, renovation, depreciation, inventory and other related content, to facilitate the effective identification of fixed assets. Fixed asset catalogs and cards should be reviewed regularly or irregularly to ensure the truth and completeness of the information.

(C) Fixed Assets Operation and Maintenance

The main risk of this link is that improper operation, dilapidation or over maintenance of fixed assets may result in inefficient use of assets, high rate of product defects, or even production accidents, or waste of resources.

Main control measures:

1. The fixed asset use department together with the asset management department is responsible for the daily repair and maintenance of fixed assets, institutionalizing, proceduralizing and standardizing the daily maintenance process of assets, conducting regular inspections, eliminating risks in a timely manner, improving the efficiency of the use of fixed assets, and practically eliminating the hidden safety hazards.

2. Fixed asset use department and management department to establish fixed asset operation and management files, and based on the development of reasonable daily maintenance and overhaul plan, and approved by the competent leadership.

3. Fixed assets physical management department to review the qualifications and credentials of the construction unit, and establish management files; repair projects should be categorized, clear need for bidding projects. Repair is completed, the construction unit issued by the delivery and acceptance report, the use of assets and physical management department to check the amount of work and approval. Major projects should be specially audited.

4. Enterprise production lines and other key equipment operating efficiency and effectiveness will have a direct impact on the enterprise's safe production and product quality, operators should be qualified technicians before taking up their full pre-service training, the implementation of special equipment post licensing system, the need to hold a license to take up their posts, must be real-time monitoring of the operation of assets to ensure that the use of assets to ensure that the process and the established operating procedures in line with the safety of operation, improve the efficiency of use.

(D) Fixed asset upgrading

Enterprises need to upgrade fixed assets on a regular or irregular basis in order to continuously improve product quality, develop new varieties, reduce energy and resource consumption, and ensure production safety and environmental protection. Fixed asset renewal has a part of the update and the overall update of the two cases, part of the purpose of the update usually includes local technological transformation, replacement of high-performance components, adding new features, etc., need to weigh the cost of updating activities and the benefits of a comprehensive decision-making; the overall update of the elimination of obsolete equipment and a comprehensive upgrade, focusing on the technological advancement of the assets, in line with the overall development strategy of the enterprise. The main risk of this segment is that insufficient renewal and reconstruction of fixed assets may result in the aging of the enterprise's product line and lack of market competitiveness.

Major control measures:

1. Regularly assess the technological advancement of fixed assets, combined with profitability and sustainability of enterprise development, the asset use department will propose technical reform programs according to the needs of the budget feasibility analysis with the finance department, and through the review and approval of the management.

2. Management needs to monitor the implementation process of the technical reform program at the right time, strengthen management, and conditional enterprises to establish special funds for technical reform and regular or irregular audit.

(E) asset inventory

Enterprises should establish a fixed asset inventory system, at least an annual comprehensive inventory to ensure that the fixed assets are consistent with the accounts, timely grasp of the profitability of assets and market value. Problems found in the fixed asset inventory should be identified, held accountable and properly handled. The risk of this link is mainly: loss of fixed assets, damage caused by account discrepancies, or serious depreciation of assets.

The main control measures:

1. The financial department to organize the use of fixed assets and management departments need to carry out regular inventory, to clarify the ownership of assets, to ensure that the physical and card, financial accounts in line with the statement, before the implementation of the inventory operations to prepare an inventory program, after the management review and carry out the relevant inventory operations.

2. At the end of the inventory, the inventory personnel need to prepare an inventory report, the management needs to review the inventory report to ensure the authenticity and reliability.

3. Inventory found in the process of inventory (inventory loss), should analyze the reasons for accountability, proper handling, the report was approved by the timely adjustment of the book value of fixed assets, to ensure that the account is consistent with the real, and reported for the record.

(F) mortgage pledge

Mortgage refers to the debtor or a third party does not transfer possession of the property, but the property will be mortgaged as a guarantee of the claim, when the debtor fails to fulfill the debt, the creditor has the right to mortgage the property at a discount or by auction, sale of mortgaged property, the price of priority compensation. Pledge, also known as the right of pledge, is the debtor or a third party will be transferred to the possession of the creditor's movable property, the movable property as a guarantee of the claim, when the debtor does not fulfill the debt, the creditor has the right to the movable property sold price priority compensation. Enterprises sometimes use their fixed assets as collateral or pledge to borrow from banks and other financial institutions for reasons such as financial liquidity, and if they fail to return the borrowed funds by the due date, the bank has the right to discount the fixed assets or auction them according to law. The main risk of this link is that the fixed assets collateral system is not perfect, which may lead to the undervaluation of collateral assets and asset loss.

Major control measures:

1. Strengthen the management of fixed asset mortgages and pledges, clarify the process of fixed asset mortgages and pledges, and stipulate the procedures and approval authority of fixed asset mortgages and pledges to ensure that the asset mortgages and pledges are subject to the authorization and approval and proper procedures. At the same time, corresponding records should be made to safeguard the safety of enterprise assets.

2. When the financial department handles the asset pledge, if it needs to entrust a professional intermediary organization to appraise and evaluate the actual value of the fixed assets, it should work with the relevant personnel of the financial institution, the fixed asset management department, and the department of the use of the fixed assets to conduct on-site inspections of the collateral, and evaluate the value of the pledged assets. For the mortgaged assets, a specialized catalog of mortgaged assets shall be prepared.

(VII) Disposal of Fixed Assets

The main risk of this link is that the disposal of fixed assets in an unreasonable manner may cause economic losses to the enterprise. The main control measures: the enterprise should establish and improve the relevant system of fixed asset disposal, distinguish between different ways of disposal of fixed assets, take corresponding control measures to determine the scope of disposal of fixed assets, standards, procedures and approval authority to ensure that the scientific nature of the disposal of fixed assets, so that the enterprise's resources can be effectively utilized.

1. For the use of fixed assets expired, the normal end of fixed assets, fixed assets should be used by the department or management department to fill in the fixed assets scrap sheet, approved by the authorized departments or personnel of the fixed assets for the end of the clean-up.

2. For fixed assets whose service life is not yet completed and which are not normally scrapped, the fixed assets shall be scrapped by the fixed assets using department, indicating the reasons for scrapping, the estimated cleaning cost and recoverable residual value, and the expected disposal price. The enterprise shall organize the relevant departments to carry out technical appraisal, approval in accordance with the prescribed procedures for scrapping and liquidation.

3. For fixed assets to be sold or transferred out of investment and non-monetary exchanges, the relevant departments or personnel shall submit an application for disposal, assess the value of the fixed assets and issue an asset assessment report. They shall be sold or transferred after being reported to and approved by the authorized departments or personnel of the enterprise. Enterprises shall pay special attention to related transactions and disposal pricing in the disposal of fixed assets. Disposal of fixed assets shall be handled by the relevant authorized personnel who are independent of the fixed asset management department and the department of use, and the disposal price of fixed assets shall be reported to the authorized department or personnel of the enterprise for approval and determination. For major fixed assets disposal, consideration should be given to hiring qualified intermediary organizations to carry out asset evaluation and adopt collective deliberation or co-signing system. Involving the change of property rights, the procedures for the change of property rights shall be carried out in a timely manner.

4. For leased fixed assets, the relevant management department shall submit an application for leasing or lending, stating the reasons and causes of the application, and the application shall be reviewed by the relevant authorized personnel and departments. After passing the audit, a rental or loan contract should be signed, including the specifics of both parties to the contract, the reasons for the rental and the duration of the contents of the contract.