What accounts are included in the fixed asset impairment provision are introduced as follows:

The fixed asset impairment provision is an asset account.

If a fixed asset is damaged, has obsolete technology or other economic reasons, causing its recoverable amount to be lower than its book value, this situation is called impairment of fixed assets. If the recoverable amount of a fixed asset is lower than its book value, impairment provisions shall be made based on the difference between the recoverable amount and its book value, and shall be included in the current profit and loss.

China's regulations on asset impairment provisions not only illustrate the importance of the principle of prudence, but are also intended to avoid the inflated increase in assets leading to an inflated increase in corporate profits, while ensuring the authenticity and comparability of corporate financial information. It should be noted that the application of the prudence principle does not mean that an enterprise can set up secret preparations. Otherwise, it will be an abuse of the prudence principle and will be treated as a major accounting error.

When one of the following circumstances exists, the fixed asset impairment provision shall be made in full based on the book value of the fixed asset:

1. If it is idle for a long time, it will not be used in the foreseeable future. Fixed assets that will no longer be used in the future and have no transfer value.

2. Fixed assets that are no longer usable due to technological advancement and other reasons.

3. Although the fixed assets can still be used, a large number of substandard products will be produced after use.

4. Fixed assets that have been damaged so that they no longer have use value or transfer value.

5. Other fixed assets that can no longer bring economic benefits to the enterprise.

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, and the value transferred is partially recovered. A depreciation fund is then formed.

As the monetary expression of fixed assets, fixed funds also have the following characteristics:

1. The cycle period of fixed funds is relatively long. It does not depend on the production cycle of the product, but on the production cycle of the product. The useful life of fixed assets.

2. The value compensation and physical renewal of fixed funds are carried out separately. The former is gradually completed with the depreciation of fixed assets, and the latter is accumulated with the usual accumulation when the fixed assets cannot be used or are not suitable for use. Depreciation funds are used to achieve this.

3. When purchasing and constructing fixed assets, a considerable amount of monetary funds needs to be paid. This investment is one-time, but the recovery of the investment is carried out through the depreciation of fixed assets in installments.