In accordance with the provisions of ASBE No. 4 - Fixed Assets, fixed assets should be measured initially at cost. The cost of purchased fixed assets includes the purchase price, related taxes and fees, as well as transportation, loading and unloading costs, installation costs and professional service fees attributable to the fixed assets before they reach their intended useable state.
The company's acquisition of fixed assets should be recorded at the price of the transaction, as well as the auction commission paid, the handling of delivery and transfer fees (if necessary), taxes, etc. as the recorded value, debit "fixed assets", credit "bank deposits", "accounts payable" and other accounts.
For depreciation, according to the new standard, enterprises should be based on the nature and use of fixed assets, a reasonable determination of the useful life of fixed assets and the estimated net salvage value, on this basis, the original price of the determination of the net salvage value of the amount deducted as the amount of depreciation accrued in the useful life of the fixed assets in accordance with the method of determining the depreciation accrued to be systematically apportioned.
In this case, it is not necessary for the enterprise to take into account the original book value of the asset, its depreciation, and its appraised value before the auction. If the enterprise can obtain reliable information on the original use of the asset, it can be used as a reference for determining the reasonable useful life of the asset, but it is not necessary to stick to the original book value, net value and other indicators. There is no significant difference between the relevant provisions of the Accounting System for Enterprises and the Guidelines, and there is no clear difference in the provisions for tax purposes.
Fixed assets how to do accounting
(1) is an important means of production in the production and management process. Fixed assets are tangible assets with the following three characteristics: ① for the production of products, services, rental or management and held; ② useful life of more than one accounting period; ③ high unit value. Enterprises should set up a "fixed assets" account, this account accounts for the original cost of fixed assets held by the enterprise.
(2) fixed assets should be established in detail. Generally in accordance with the category of fixed assets (production and operation of fixed assets, non-production and operation of fixed assets, leased fixed assets, fixed assets, fixed assets, unused fixed assets, fixed assets under finance leases, land, etc.) to set up the secondary accounts. It is also possible to set up secondary accounts according to the use (plant, machinery and equipment, instruments, electronic equipment, means of transportation and others).
(3) "Fixed Assets Liquidation" account accounting for enterprises due to the sale, scrap and destruction of fixed assets transferred to liquidation of the value of the process of liquidation in the liquidation of the liquidation costs and liquidation revenues, etc.. This account should be set up in accordance with the fixed assets being liquidated ledger, for detailed accounting.
(4) "to be dealt with property profits and losses - fixed assets to be dealt with profits and losses" account accounting for enterprises in the process of fixed assets identified in the inventory of fixed assets of all kinds of fixed assets, inventory losses and the value of the destruction.
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