What does the new accounting standard say about fixed assets???

Fixed assets refer to non-monetary assets held by enterprises for the production of products, provision of labor services, leasing or operation and management, which have been used for more than 12 months and have reached a certain standard in value, including houses, buildings, machines, machinery, means of transportation and other equipment, appliances and tools related to production and business activities. Fixed assets are the means of labor of an enterprise, and they are also the main assets on which an enterprise relies for production and operation. From the perspective of accounting, fixed assets are generally divided into production fixed assets, non-production fixed assets, leased fixed assets, unused fixed assets, unused fixed assets, financial lease fixed assets, and donated fixed assets.

Added: Key features:

From the perspective of the purchase of fixed assets with VAT credit for input tax, fixed assets refer to:

1.Machines, machinery, means of transport, and other production-related equipment, tools, and appliances that have been used for more than one fiscal year;

2.Items with a service life of more than 2 years that do not belong to the main equipment of production and operation. (07 new accounting standards on the recognition of fixed assets value restrictions abolished, as long as the company believes that it can and the useful life is greater than one fiscal year can be recognized as fixed assets, depreciation according to a certain depreciation method.)

The scope of the provisions here is narrower than that in the Accounting Standards for Business Enterprises, and it mainly does not include real estate such as houses and buildings, because the sale of houses and buildings is subject to business tax and no value-added tax.

For general taxpayers, the input VAT of fixed assets used for production and operation can be deducted.

Articles 3 and 4 of the Accounting Standards for Business Enterprises No. 4 - Fixed Assets define fixed assets:

Fixed assets refer to tangible assets that have the following characteristics at the same time:

1) Held for the purpose of producing goods, providing labor services, leasing or business management;

b) The service life is more than one fiscal year.

Service life refers to the expected period during which an enterprise will use a fixed asset, or the quantity of products or services that the fixed asset can produce.

Article 4 A fixed asset can only be recognized if it meets the following conditions at the same time:

1) The economic benefits related to the fixed assets are likely to flow into the enterprise;

2) The cost of the fixed asset can be reliably measured.

Fixed assets are tangible assets that have the following characteristics at the same time:

Legal analysis: 1) Assets with a service life of more than one year and a unit value of more than 2,000 yuan are called fixed assets; Those that meet one of the following conditions should also be classified as fixed assets. (2) It is a part of the whole, which is inconvenient or not suitable for division, and its overall total value meets the standard of fixed assets, should be listed as fixed assets (3) Where the same type and specification of equipment, appliances, and service life is more than one year, although the unit value is less than 2,000 yuan, but the quantity is large, the total value is larger, and the centralized manager should also be listed as fixed assets.

4) A single motor with a power of more than 30kw (including 30kw) should be listed as a fixed asset. (5) The pipes, valves, instruments and lines on the complete set of production equipment shall be listed as fixed when completed.

Legal basis: Article 11 of the Enterprise Income Tax Law of the People's Republic of China When calculating the taxable income, the depreciation of fixed assets calculated by the enterprise in accordance with the provisions shall be allowed to be deducted. The following fixed assets are not subject to depreciation deductions:

1) Fixed assets other than houses and buildings that have not been put into use; (2) Liquidation of fixed assets leased in the form of operating leases; (Shouyan first three) fixed assets leased out in the form of financial lease; (4) Fixed assets that have been fully depreciated and continue to be used; (5) Fixed assets unrelated to business activities; (6) Land recorded as fixed assets separately valued; (7) Other fixed assets that are not subject to depreciation deduction.

The new accounting standards for fixed assets include capitalization standards, capitalization amounts, depreciation policies, and impairment tests for fixed assets.

1. Capitalization standard: According to the new accounting standards, fixed assets must meet two conditions before they can be capitalized. First, the economic benefits of the asset will flow into the business and can be reliably measured; Second, the business is able to reasonably estimate the cost of the asset.

Only when these two conditions are met can a business capitalize its fixed assets.

3. Depreciation policy: The new accounting standards require enterprises to formulate depreciation policies based on the expected useful life and estimated residual value rate of assets. Depreciation refers to the process of allocating the cost of a fixed asset over its expected useful life.

4. Impairment test of fixed assets: The new accounting standard requires enterprises to conduct impairment tests on fixed assets on a regular basis to determine whether there are signs of impairment.

The difference between the new accounting and the old accounting is mainly reflected in the differences in accounting concepts, changes in accounting standards, and advances in accounting technology

1. Differences in accounting concepts: The old accounting was mainly based on historical costs, emphasizing past transactions and events. The new accounting, on the other hand, is more focused on fair value and cost-effectiveness, with an emphasis on current transactions and events.

2. Changes in accounting standards: The old accounting mainly followed the International Financial Reporting Standards (IFRS) and the United States Generally Accepted Accounting Principles (GAAP), while the new members paid more attention to corporate social responsibility and sustainable development, so new accounting standards were introduced in many aspects, such as corporate social responsibility reporting (CSR), environmental, social and governance (ESG), etc.

3. Progress of accounting technology: With the development of information technology, new accounting has introduced many new technologies, such as big data, cloud computing, artificial intelligence, etc., which make accounting work more efficient and accurate.

1. Assets with a service life of more than one year and a unit value of more than 2,000 yuan are called fixed assets;

2. If it is a part of the whole and is inconvenient or inappropriate to divide, and its overall total value meets the standard of fixed assets, it should be listed as a fixed pure asset;

3. All the same type and specification of equipment, appliances, and service life of more than one year, although the unit value is less than 2,000 yuan, but the quantity is more than that of the branch pants, the total value is larger, and the centralized management is also listed as fixed assets;

4. If the power of a single motor is more than 30 kilowatts, it should be listed as a fixed asset;

5. The pipes, valves, instruments and lines on the complete set of production equipment should be listed as fixed assets when completed.