(a) Enterprises purchasing fixed assets that do not need to be installed, according to the amount to be included in the cost of fixed assets, debit this account, credit "bank deposits" and other accounts. Purchase of fixed assets that need to be installed, first recorded in the "construction in progress" account, and then transferred to this account when it reaches the intended state of use.
If the purchase of fixed assets is deferred beyond the normal credit terms, which is essentially of a financing nature, the present value of the purchase price payable shall be debited to this account or the "construction in progress" account, and the amount to be paid shall be credited to the "Long-term payables" account, and the difference shall be debited to the "Long-term payables" account. The difference is debited to "Unrecognized Financing Costs".
(2) Fixed assets constructed by oneself to reach the state of intended use are debited to this account and credited to the "construction in progress" account. Fixed assets that have reached the intended state of use, but have not yet been finalized, should be recorded at the estimated value, to determine the actual cost and then adjusted.