On the issue of overhaul of fixed assets, the difference between overhaul and modernization of fixed

On pages 74-75 of the Explanation of Accounting Standards for Business Enterprises, subsequent expenses such as repair costs related to fixed assets that do not meet the conditions for recognition of fixed assets should be included in the current management expenses or sales expenses when they occur according to different circumstances. Under normal circumstances, after the fixed assets are put into use, due to the wear and tear of the fixed assets and the different durability of each component, it may lead to local damage to the fixed assets, in order to maintain the normal operation and use of the fixed assets and give full play to their use efficiency, the enterprise will carry out necessary maintenance of the fixed assets. Expenses such as daily repair costs and major repair costs of fixed assets only ensure the normal working condition of fixed assets, and generally do not generate future economic benefits.

Therefore, it is usually not eligible for the recognition of fixed assets and should be directly included in the profit or loss for the current period when incurred. Follow-up expenses such as fixed asset repair costs incurred by the production workshop (department) and administrative management department of the enterprise shall be included in the "management expenses".If an enterprise has a special sales department, the subsequent expenses such as fixed asset repair expenses related to the special sales organization shall be included in the "sales expenses". For fixed assets that are no longer in use during the process of repair and renovation, if the repair and renovation expenses do not meet the recognition conditions of fixed assets, they will also be directly included in the profit or loss for the current period when they occur.

According to what you said, the overhaul expenses incurred in the workshop, the accounting treatment is as follows: Debit: Administrative expenses, Credit:

Cash or bank deposit.

Depreciation is stopped during the overhaul period, capitalization that meets the conditions for capitalization is met, and replacement parts are excluded according to the book value of the parts.

Borrow: Administrative Expenses - Repair Costs Credit: Bank Deposits.

First, the characteristics of the definition are different.

1. Major repair of fixed assets.

The major repair of fixed assets is to partially update the fixed assets of the enterprise, and its main characteristics are: large repair scope, long interval, small number of repairs, and large expenditures. Repair expenses reach more than 50% of the tax base at the time of acquisition of fixed assets;The service life of fixed assets will be extended by more than 2 years after repair.

2. Modernization.

The reconstruction and expansion of fixed assets is also known as the improvement of fixed assets. Repairs of fixed assets that meet one of the following conditions shall be regarded as improvements:

The decoration expenditure incurred reaches more than 20% of the original value of fixed assets;

After renovation, the economic service life of the asset in question is extended by more than two years;

The fixed assets that have been renovated are used for new or different purposes.

Second, the bookkeeping treatment is different.

1. Major repair of fixed assets.

The amortization period is more than 1 year, and it is amortized in installments through the "Deferred Assets" account.

If the amount is large or the occurrence of non-appeal is sufficiently balanced, the withholding or amortization method should be used.

2. Modernization.

The reconstruction and expansion of fixed assets should generally be accounted for through the "construction in progress" account, and then transferred to the "fixed assets" account after the project is completed and delivered, and the fixed assets card should be updated in a timely manner.

If the long-term amortization method is adopted for the major repair of fixed assets, the cost will be treated as the cost to be amortized and the split when the major repair is completed. if the apportionment period is less than one year, it shall be debited to the account of "long-term amortized expenses"; Debited to the "Deferred Assets" account with an apportionment period of more than one year.

In addition, the actual cost of self-operated major repairs by the auxiliary production workshop shall be credited to the general ledger account of "auxiliary production" and the auxiliary production sub-ledger of the repair workshop to which it belongs; The price paid or payable to an external unit for the contract to carry out major repairs shall be credited to the accounts of "bank deposits" or "accounts payable".

When amortizing the major repair expenses that have been incurred on a monthly basis, the average monthly amortized expenses during the amortization period shall be included in the debit side of the general ledger account of "auxiliary production", "manufacturing expenses" and "management expenses" and the sub-ledgers to which they belong; The credit is credited to both the Expense to Amortize or Deferred Assets general ledger account and the subsidiary ledger to which it belongs. When the provision method is used for accounting for major repair costs, the amount of provision for each period shall be calculated in advance.

Major repairs and renovations of fixed assets are all follow-up measurements of fixed assets. Major repair refers to the renewal and repair of existing fixed assets to restore them to a normal state; Modernization refers to the transformation of existing fixed assets into fixed assets of Xinyunda, so that it has a more advanced technical level.

Depreciation shall be accrued for fixed assets that are out of service due to major repairs, and the depreciation accrued shall be included in the relevant costs and expenses; The cost of overhaul of fixed assets refers to the cost of overhauling more than 50% of the taxable standard when acquiring the fixed assets, and at the same time meeting the conditions for extending the service life of the fixed assets for more than 2 years after repair; However, depreciation is not required when renovating fixed assets, and depreciation is not required when the fixed assets are transferred to a construction project under construction during modernization.

<> example questions for calculating the recorded value of modernization and transformation in line with capitalization.

1) Capitalized follow-up expenditures.

The subsequent expenditure of capitalization generally refers to the expenditure on the reconstruction and expansion of fixed assets.

1.The book value of fixed assets is transferred to the construction in progress and depreciation is stopped.

Debit: Construction in progress (book value of fixed assets).

Accumulated depreciation (accumulated depreciation accrued for fixed assets).

Provision for impairment of fixed assets (provision for impairment of fixed assets) credit: fixed assets (original price of fixed assets).

2.Expenses incurred during the renovation process.

Borrow: Construction in progress (total expenditure for the renovation process).

Credit: Bank deposits (expenses incurred during the renovation process).

Inventory Commodities Raw materials (actual cost of requisitioned materials).

3.The fixed asset reaches the intended usable state.

Debit: Fixed asset (actual cost of fixed asset).

Credit: Construction in progress (actual cost of fixed assets).

2) Expensed follow-up expenditures.

The subsequent expenses of expense refer to the expenses that do not meet the conditions for the daily repair and maintenance of fixed assets.

Borrow: administrative expenses (expensed expenses of the administrative department).

Selling expenses (expenses and expenses of the sales department).

Manufacturing Expenses, etc. (Expensed Expenses Related to Inventory Production and Processing) Credit: Bank Deposits (Expensed Total Expenses).

Summary. Hello, what are the major repairs of fixed assets? Major repair refers to the comprehensive and thorough repair of the fixed assets of the enterprise, such as the complete dismantling and repair of machinery and equipment and the replacement of major components and accessories.

Major repair of fixed assets refers to the comprehensive and thorough repair of fixed assets in order to maintain the normal operation and use of fixed assets. It is characterized by a large range of repairs, long intervals, less occurrences, and more repair costs. 1. What are the expenses for the overhaul of fixed assets: 1. Expenditures that meet the conditions that the repair expenditure reaches more than 50% of the tax base at the time of acquisition of the fixed assets2, and the service life of the fixed assets is extended by more than 2 years after repair.

3. Legal basis: Article 69 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China stipulates that the major repair expenditure of fixed assets referred to in Article 13 (3) of the Enterprise Income Tax Law refers to the expenditure that meets the following conditions at the same time: the repair expenditure reaches more than 50% of the tax base when the fixed assets are acquired, and the service life of the fixed assets is extended by more than 2 years after repair, and the expenditure specified in Article 13 (3) of the Enterprise Income Tax Law shall be amortized in installments according to the remaining service life of the fixed assets.

I hope it can help you, I wish you good health, a happy mood and a smooth work.

Hello, what are the major repairs of fixed assets? Major repair refers to the comprehensive and thorough repair of the fixed assets of the enterprise, such as the complete dismantling and repair of machinery and equipment and the replacement of major components and accessories. Major repair of fixed assets refers to the comprehensive and thorough repair of fixed assets in order to maintain the normal operation and use of fixed assets.

It is characterized by a large range of repairs, long intervals, and low occurrences, and the repair costs are increasing. 1. What are the expenses for the overhaul of fixed assets1, the expenses that meet the conditions for repairing the fixed assets to reach more than 50% of the tax base when the fixed assets are acquired2, and extending the service life of the fixed assets for 2 years after repair. 3. Legal basis:

Article 69 of the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China stipulates that the expenditure on major repair of fixed assets referred to in Article 13 (3) of the Enterprise Income Tax Law refers to the expenditure that meets the following conditions at the same time: the repair expenditure reaches more than 50% of the tax base at the time of acquisition of the fixed asset and the service life of the fixed asset is extended by more than 2 years after repair, and the expenditure specified in Article 13 (3) of the Enterprise Income Tax Law shall be amortized in installments according to the remaining useful life of the fixed asset. I hope it can help you, I wish you good health, a happy mood and a smooth work.

Regular maintenance is not considered a major repair of fixed assets.

Hello, regular maintenance is not a major repair of fixed assets, I hope to help you, I wish you good health and a happy mood.

Is the salary of workshop equipment repair personnel an indirect production expense?

Hello, the wages and wages of workshop equipment repair personnel are indirect production expenses.

During the overhaul of fixed assets, depreciation is required to be included in the original value. Fixed assets that are out of service due to major repairs shall be depreciated accordingly, and the depreciation accrued shall be included in the relevant costs and expenses.

The expenditure on the overhaul of fixed assets refers to the expenditure that meets the following conditions at the same time: the overhaul expenditure at the time of the acquisition of the fixed capital Mengchang premature birth reaches more than 50% of the tax base, and the service life of the repaired fixed assets is extended by more than 2 years; However, depreciation is not required when a fixed asset is remodeled, because at the time of renovation, the fixed asset is transferred to a construction project under construction, so it does not need to be depreciated.

According to the current investment management system and the regulations of the relevant departments, all projects of the nature of major repair, maintenance and maintenance (such as equipment overhaul, renovation and reinforcement of buildings, farmland water conservancy projects, embankments, reservoirs, railways, etc.) shall not be included in the management of fixed asset investment and shall not be counted as fixed asset investment.

The accounting treatment of fixed assets overhaul expenses is: debit: long-term amortized expenses, credit: bank and closed deposits, etc.

The expenditure on the overhaul of fixed assets shall be amortized over a certain period of time.

The accounting treatment of the renovation of fixed assets is: borrowing: construction in progress, accumulated depreciation, and credit: fixed assets.

When the expenditure on renovation and renovation occurs, borrow: the shed rolls the project under construction, and the loan: bank deposits and other accounts.

When the completion is carried forward, borrow: fixed assets, credit: construction in progress.

Dear, hello, it is a pleasure to serve you: The overhaul treatment method that occurs after the scrapping of fixed assets is to write off the fixed assets and depreciation first: borrow:

Disposal of fixed assets - 495 machinery 400 Accumulated depreciation 800 Credit: fixed assets 1200 (2) Recovery price: borrow:

Cash 900 Credit: Disposal of Fixed Assets. Improvement and reconstruction of self-owned fixed assets:

Credited to Fixed Assets. Improvement and reconstruction of fixed assets under financial lease: recorded in "fixed assets".

Improvement and reconstruction of fixed assets included in operating lease: recorded in "long-term amortized expenses". If the fixed assets attributable to oneself in the accounting sense have the account carrier of fixed assets, the capitalization is recorded in the "fixed assets", if it is not the fixed assets attributable to oneself in the accounting sense, and there is no account carrier of fixed assets, there is really no way but to record it as "long-term amortized expenses".

In fact, whether it is included in the "fixed self-inspection" or "long-term amortized expenses", it is to form a simple asset class project, and then enter the cost or expense little by little. Thank you for your trust, the above is my reply, I hope it can help you, I wish you a happy life.

Summary. Hello, equipment overhaul needs to handle the appreciation of fixed assets.

Hello, equipment overhaul needs to handle the appreciation of fixed assets.

Article 68 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that the expenditure on major repairs of fixed assets refers to the expenditure that meets the following conditions at the same time: (1) the expenditure on revision and argumentation reaches the tax base of more than 50 at the time of acquisition of the fixed asset; (2) The service life of fixed assets after repair is extended by more than 2 years. The amortization period shall be determined according to the remaining useful life of the fixed assets.

The new tax law increases the capitalization ratio of repair expenditures from more than 20% of the original value of fixed assets to more than 50% of the tax base of acquired fixed assets.

The major repair of fixed assets is to partially update the company's fixed assets, such as the vertical search of houses and the renovation of buildings. Its characteristics are: large repair range, long interval, small number of repairs, and large repair cost at one time.

The cost of major repairs of fixed assets is generally collected through the "construction in progress" account, and then carried forward to the relevant accounts after the completion of the major repairs. Due to the uneven occurrence of major repair expenses, in order to balance the cost burden, the company can adopt the method of amortization of residual mold calendar expenses or expense provisioning.

1) When paying for major repairs.

Borrow: Construction in progress.

Credit: Related Accounts.

2) When the major repair is completed, the repair cost will be amortized in installments.

If the cost sharing period is less than one year:

Borrow: Expenses to be amortized.

Credit: Construction in progress.

If the cost sharing period is more than one year:

Borrow: Long-term amortized expenses.

Credit: Construction in progress.