What account is included in the asset valuation fee when dealing with fixed assets?

When dealing with fixed assets, it involves the treatment of asset valuation expenses. In general, asset valuation expenses can be charged to the following accounts:

Asset Disposal Expense: If the valuation expense of a fixed asset is incurred as a result of the disposal and disposal of the fixed asset, it can be included in the Asset Disposal Expense account.

Administrative or administrative expenses: If the valuation expenses of a fixed asset are related to management and administrative activities, they can be included in the administrative or administrative expenses account.

Other expenses: If they cannot be clearly categorized into a specific account, you can charge the asset valuation expense to the other expense account.

It is necessary to determine which account to include the asset valuation expense in the context of the situation and the requirements of the accounting standards. It is advisable to consult with an accounting professional or the finance department to ensure proper accounting treatment and classification. If you need to do an evaluation, please nod your head or contact Zhenglian Kunqi for third-party evaluation consultation.

Disposal of fixed assets.

It refers to the scrapping and liquidation of fixed assets, as well as the liquidation of fixed assets that have been damaged and lost due to various force majeure natural disasters.

The disposal of fixed assets belongs to the asset class account, which is a transitional account, and before the completion of all the liquidation work, the income and losses incurred due to the liquidation, the income lender and the loss borrower are recorded. Finally, the total credit is used to subtract the total debit, which is positive for profit and negative for loss.

Therefore, when dealing with fixed assets, the valuation expenses incurred should be included in the debit side of the fixed asset disposal and finally collected in the non-operating income and expenditure account.

However, the state stipulates that the book value can be adjusted by appraising the value only in the following two situations:

First, in accordance with the provisions of the "Company Law", the assets of the enterprise shall be evaluated, and the original book value of the corresponding assets of the enterprise shall be adjusted according to the value confirmed by the asset appraisal;

The second is enterprise merger, that is, when purchasing all the equity of other enterprises, if the acquired enterprise retains its legal personality, the purchased enterprise shall adjust the book value of the relevant assets according to the value confirmed by the appraisal, and if the purchased enterprise loses its legal personality, the purchasing enterprise shall record the value of the assets of the purchased enterprise according to the value after the appraisal.

In the above two cases, the part of the appraised value of the fixed assets will increase the book value of the fixed assets accordingly, and the credit will be credited to the capital reserve account, and the accounting entries are:

Borrow: Fixed assets.

Credit: Capital Reserve.

The results of the fixed asset valuation show that there is no impairment of the two assets in question, and there is no change in the estimated net residual value. There is no change in the useful life, so according to the principle of prudence, there is no need to adjust the book value and depreciation method of fixed assets.

The circumstances in which depreciation is stopped are:

1. The fixed assets have been scrapped and cannot bring future economic benefits to the enterprise.

2. The management has made a resolution to let the fixed assets, and has signed an irrevocable contract with the buyer 3. The fixed assets are in the process of improvement.

The appraisal fee is included in the Management Expenses - Consultant Fees account.

Appraisal fee refers to the cost of appraisal services in the process of appraising, valuing or rating assets or liabilities. This fee is usually charged by an assessment agency or professional during the assessment process. In terms of accounting and finance, the assessment fee is usually charged to the respective expenditure account.

For businesses, the appraisal fee is usually incorporated into the capital expenditure, i.e. the asset valuation fee or the underlying rating fee. Capital expenditure refers to the expenditure of funds used to purchase or improve assets. Since asset valuation and rating are often an important part of a business's long-term investment, the appraisal fee can be included in the capital expenditure to spread the cost of appraisal.

If the appraisal fee is incurred by the enterprise when purchasing an asset or investment project, it can be included in the spinal cost of the relevant asset. If the evaluation fee is part of the research and development expenses, it can be included in the development cost. If the assessment expense is incurred in the course of preparing the company's annual consolidated statements, it can be charged to the expense category of the company's profit and loss account.

Provisions for the Bearing of Assessment Fees:

1. Enterprise commitment.

If a company needs to evaluate its assets, liabilities, and business, the company shall bear the cost of the evaluation. Because the assessment work is carried out by the enterprise itself, it is the need to maintain the operation of the enterprise, and it is more appropriate for the enterprise to undertake it by itself. In this case, the assessment agency serves the enterprise, and the enterprise can choose its own assessment agency and set the price according to the assessment agency's fees.

2. The demand-side bears.

If the assessment is carried out to meet the needs of a certain party, then the cost of the assessment should generally be borne by the demander. If an appraisal is required at the time of the transfer of ownership of the real estate, the appraisal fee shall be paid by the person or purchaser. Because the appraisal of real estate is to determine the value of the real estate, and the interests of both the buyer and the seller are involved, the parties will agree on it in the purchase contract.

3. Undertaken by the evaluation agency.

In order to obtain a contract or order and conclude a business cooperation, the evaluation agency may offer preferential treatment such as free evaluation or reduced fees. In this case, the evaluation agency can design the plan at its own expense, so as to strive for long-term cooperation with the client.