the net value of fixed assets
The net value of fixed assets is the difference between the original value of fixed assets minus accumulated depreciation and impairment reserve.
Generally speaking, the original value of fixed assets should be recorded according to the actual cost at the time of acquisition. However, due to the different sources of fixed assets, the specific content of their value composition is also different. Net fixed assets = book value of fixed assets = original price of fixed assets-provision for accumulated depreciation-provision for impairment of fixed assets = net fixed assets-provision for impairment of fixed assets.
engineering material
Engineering materials refer to building materials (such as steel, cement, glass, etc. ) for the construction of fixed assets, as well as high-priced turnover parts of enterprises (such as aircraft engines). Buy back assets for reprocessing and reconstruction. Listed as non-current assets in the balance sheet.
Engineering materials accounting enterprises for infrastructure projects, renovation projects and major repair projects, the actual cost of various materials, including materials prepared for the project, the actual cost of equipment that has not been delivered for installation, and the actual cost of prepaying large-scale equipment and purchasing tools prepared for production according to the project budget during the capital construction period. The purchase of equipment that does not need to be installed by enterprises should be accounted for in the "fixed assets" account, not in this account.
construction in progress
Construction-in-progress refers to the expenditure of unfinished projects such as new construction, reconstruction and expansion of enterprise assets, or technical transformation, equipment renewal and major repair projects. Projects under construction usually have two ways: "self-supporting" and "contracting out". Self-operated construction in progress refers to the projects that enterprises purchase engineering materials, construct and manage themselves; Construction in progress refers to projects contracted by other engineering teams or units by enterprises through signing contracts.
Liquidation of fixed assets
Fixed assets cleaning refers to the identification, scrapping, write-off and residual value treatment of assets. For fixed assets that have lost their production capacity due to wear and tear, suffered serious disasters and accidents, or have to be eliminated and updated because of obsolescence. After technical appraisal and economic evaluation, the fixed assets are confirmed to be scrapped and transferred to liquidation, which means that the fixed assets are withdrawn from the production and operation process of the enterprise, and the original fixed capital investment is reduced accordingly. Therefore, the original price and depreciation of assets should be cancelled in accounting, and fixed funds should be reduced at the same time. In order to ensure the simple reproduction of fixed assets, its depreciation should be equal to the depreciation amount. If the fixed assets are scrapped in advance and are not fully depreciated, they should be fully replenished in principle. However, if the fixed assets scrapped in advance due to poor management of the enterprise are not fully depreciated, they will not be supplemented. Scrapped fixed assets should be written off directly according to the original price of fixed assets. When the scrapped fixed assets are written off, the "fixed assets" account shall be credited according to its original price, and the "depreciation" account shall be debited according to the accumulated depreciation amount.
Extended data:
The balance sheet, also known as the statement of financial position, is the main accounting statement that reflects the financial position of an enterprise on a certain date (usually at the end of each accounting period), that is, the status of assets, liabilities and owners' equity. The balance sheet adopts the principle of accounting balance.
The accounting transactions of assets, liabilities and shareholders' equity are divided into two parts: assets and liabilities and shareholders' equity. After accounting procedures such as entry, transfer, suspense, trial calculation and adjustment, it is condensed into a statement according to the static enterprise situation on a specific date. In addition to internal debugging, business direction and fraud prevention, its report function can also let all readers know the business situation of the enterprise in the shortest time.
Balance sheet is an accounting statement that reflects all assets, liabilities and owners' equity of an enterprise on a specific date (such as the end of the month, the end of the quarter and the end of the year), and it is a static embodiment of the business activities of the enterprise. According to the balance formula of "assets = liabilities+owners' equity", according to certain classification standards and certain order, the specific items of assets, liabilities and owners' equity on a specific date are properly arranged and compiled.
It shows the economic resources owned or controlled by the right on a specific date, the existing obligations undertaken and the owner's right to claim the net assets. It is a static statement that reveals the financial situation of an enterprise at a certain point in time.
Based on the principle of accounting balance, the balance sheet divides the transactions of assets, liabilities and shareholders' equity that conform to accounting principles into two parts: assets and liabilities and shareholders' equity. After accounting procedures such as entry, transfer, suspense, trial calculation and adjustment, it is condensed into a report based on the static enterprise situation on a specific date. In addition to internal debugging, business direction and fraud prevention, its report function can also let all readers know the business situation of the enterprise in the shortest time.
Balance sheet is a very important financial statement in accounting, and its most important function is to show the operating conditions of enterprises.
References:
Baidu Encyclopedia-Balance Sheet