The answer to the meaning of fixed asset surplus is as follows:

Fixed asset surplus occurs when the actual quantity of fixed assets exceeds the book quantity when the enterprise conducts property inventory. of surplus. Enterprises should conduct an inventory of fixed assets regularly or at least at the end of each year to ensure the authenticity of fixed asset accounting.

Fixed asset inventory surplus refers to fixed assets that have not been recorded or exceed the book amount found during the inventory review process. The reasons for surplus fixed assets must be identified, reported to the competent department for approval according to regulations, and book records adjusted.

Generally, the full replacement value and estimated depreciation amount are recorded in the fixed assets account and depreciation account, and corresponding increase records are made on the fixed asset card. The net value is recorded in " After approval, the "Property to be Disposed" account will be transferred from the "Property to be Disposed" account to the "Fixed Fund" account to increase the company's fixed fund.

Accounting treatment: The following approach should be adopted uniformly: if there is an active market for the same or similar fixed assets, the market price of the same or similar fixed assets shall be recorded as the original price. If the asset should be depreciated, then The value loss estimated based on its age is reflected as accumulated depreciation;

If there is no active market for the same or similar fixed assets, the present value of the estimated future cash flow of the fixed asset will be used as the entry value.

Accounting treatment of fixed asset surplus: According to the relevant provisions of the "Accounting Standards for Business Enterprises No. 4 - Fixed Assets" and its application guide, the fixed asset surplus should be recorded as a previous error in "previous years' profits and losses" Adjustment" account. But it turned out to be the profit and loss for the current period.

The reason why the new standards regard fixed asset surplus as a previous error for accounting treatment is because the possibility of fixed asset surplus due to factors beyond the control of the enterprise is extremely small or even impossible.

If an enterprise has a surplus of fixed assets, it must be caused by undercounting or omitting calculations in the previous accounting period. It should be corrected as an accounting error. This can also control artificial adjustment of profits to a certain extent. possibility.