Because the book value of fixed assets is determined based on the fair value of the investee's identifiable net assets, and the net profit of the investee is calculated based on its book value.

Therefore, it is necessary to adjust according to the fair value when the investment is obtained. For fixed assets, it is necessary to depreciate according to the fair value when the investment is obtained. In this way, the portion included in the expenses will increase, and the corresponding net profit will decrease.

Main features: 1. Fixed assets generally have a relatively large value, are used for a long time, and can participate in the production process repeatedly for a long time.

2. Although wear and tear occurs during the production process, it does not change its physical form. Instead, its value is gradually transferred to the product according to the degree of wear and tear. The transferred value is partially recovered to form a depreciation fund.