What are the initial measurements of fixed assets?

Fixed assets should be initially measured at cost. The cost of fixed assets refers to all reasonable and necessary expenditures incurred by an enterprise before the acquisition and construction of a fixed asset reaches the predetermined usable state.

These expenditures include direct incurring prices, freight and miscellaneous costs, packaging costs and installation costs, as well as indirect incurred, such as interest on borrowings, differences in translation of foreign currency borrowings and other indirect costs to be apportioned.

A compensation method for the part of the value of fixed assets transferred to the product due to wear and tear in the process of use is called depreciation, and the calculation methods of depreciation mainly include the average life method, the workload method, the accelerated depreciation method, the sum of life method, etc.; Fixed assets are replaced in material form and compensated in the form of value, that is, renewed; In addition, there is the maintenance and repair of fixed assets, etc.

The initial measurement of a fixed asset refers to the determination of the initial cost of the fixed asset. Under the general situation, fixed assets are measured according to the actual cost of finished potatoes, that is, the historical cost.

When a unit obtains fixed assets, the accounting treatment is debit: fixed assets, credit: bank deposits and other accounts.

The initial measurement of fixed assets can be understood as the determination of the initial cost of fixed assets. What are the main initial measurement methods for fixed assets?

The initial measurement methods of fixed assets include historical cost, present value, fair value, etc. The cost structure of fixed assets varies depending on the way in which they are acquired. Enterprises should distinguish between different methods such as outsourcing, self-construction, financial leasing and investment, etc., and record them in accordance with the corresponding measurement methods.

In general, fixed assets are measured at actual cost, i.e., historical cost, and recorded at the consideration at the time of acquisition of fixed assets.

If the purchase price of a fixed asset is deferred in excess of the normal credit terms, and it is essentially of a financing nature, the cost of the fixed asset shall be determined on the basis of the present value of the purchase price.

The cost of fixed assets invested by investors shall be determined in accordance with the value agreed in the investment contract or agreement, unless the value agreed in the contract or agreement is unfair.

For specific fixed assets in special industries, enterprises should include the present value of disposal costs in the cost of the relevant fixed assets, and at the same time recognize the corresponding estimated liabilities.

What does fixed assets mean?

Fixed assets refer to tangible assets that have the following characteristics at the same time: held for the production of goods, the provision of labor services, leasing or operation and management. Useful life of more than one fiscal year.

A fixed asset can only be recognized if it meets the definition and meets the following two conditions: the economic benefits associated with the fixed asset are likely to flow into the enterprise. The cost of this fixed asset can be reliably measured.

What are the costs of purchasing fixed assets?

The cost of the fixed assets purchased by the enterprise includes the purchase price, relevant taxes and fees, transportation costs, loading and unloading costs, installation costs and professional service fees attributable to the fixed assets before the fixed assets reach the intended usable state. Among them, the relevant taxes and fees do not include the deductible VAT input tax paid when purchasing fixed assets as stipulated in the tax law, including customs duties, deed taxes, cultivated land occupation taxes, vehicle acquisition taxes, etc. The original value of fixed assets does not include employee training expenses, which are included in the profit or loss for the current period when slag occurs.

The cost of fixed assets refers to all reasonable and necessary expenditures incurred by an enterprise before the acquisition and construction of a fixed asset reaches the predetermined usable state. The initial measurement of Guwang's assets is obtained in different ways. The principle of initial measurement of fixed assets is that fixed assets should be initially measured in accordance with the stupid and difficult file report.

For specific fixed assets in a particular industry, disposal charges should also be taken into account when determining their initial recorded costs.

When an enterprise obtains fixed assets and carries out initial measurement in the course of operation, it generally involves unrecognized financing expenses and other accounts, and how to deal with the corresponding accounting treatment?

Accounting entries for the initial measurement of a fixed asset.

1. Purchase fixed assets that do not need to be installed, and borrow: fixed assets.

Tax Payable – VAT payable (input tax).

Credit: bank deposits, accounts payable, etc.

2. Roll over the purchase of fixed assets that need to be installed.

Borrow: Construction in progress.

Tax Payable – VAT payable (input tax).

Credit: bank deposits, accounts payable, etc.

When the intended usable state is reached.

Borrow: Fixed assets.

Credit: Construction in progress.

3. When the purchase price of fixed assets exceeds the normal credit terms and deferred payment, the fixed assets of the construction in progress (the present value of the purchase price concession) shall be borrowed

Unrecognized financing charges (unpaid interest).

Credit: Long-term payables (unpaid principal and interest).

Borrow: Construction in progress Financial expenses.

Credit: Financing charges are not recognized.

What is 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.

What is a construction in progress?

Construction in progress refers to the unfinished project expenditure such as new construction, reconstruction, expansion or technical transformation, equipment renewal and major repair of enterprise assets. There are usually two ways to "self-operate" and "outsource" for projects under construction. Self-operated projects under construction refer to projects in which the enterprise purchases engineering materials, constructs and manages by itself; The project under construction is contracted by the enterprise through the signing of a contract and the construction of the project by other engineering teams or units.

What are the unrecognized financing charges?

The unrecognized financing expense account reflects the unrealized financing expenses incurred by financing leased assets (such as fixed assets and intangible assets) or long-term borrowings that should be amortized during the lease period. It can also be regarded as the interest that the lessee must pay to the lessor for the purpose of financing, because the financial lease itself contains the purpose of financing.