Fixed assets input:

Transfer to liquidation

Debit: Fixed assets liquidation

Accumulated depreciation

Fixed assets impairment reserve (impairment reserve accrued according to the fixed assets)

Loan: Fixed assets

Transfer to investment:

Borrow: Long-term equity investment

Loan: The monetary expression of fixed assets also has the following characteristics:

1. The cycle period of fixed funds is relatively long, which does not depend on the production cycle of products, but on the service 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 realized with the depreciation fund accumulated at ordinary times when the fixed assets cannot be used or should not be used.

3. When purchasing and building fixed assets, you need to pay a considerable amount of monetary funds. This investment is one-off, but the investment is recovered by stages through the depreciation of fixed assets.

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