On the issue of the transformation and renewal of fixed assets

1000-500 + 500-(300-500 * 300 1000) = 8.5 million yuan.

When the fixed assets are improved, one of the equipment is replaced, and the book value of the replacement part should be deducted when calculating the cost of construction in progress, and the book value of the replacement part should be used to use the original book value - accumulated depreciation - fixed assets impairment provision, in this question, the total depreciation amount is given as 500, then calculate the proportion of the book value of the equipment to the total book value, and then multiply by the total depreciation amount to calculate the depreciation amount of the equipment, and after deduction, it becomes 300-500 * 300 1000 = 1.5 million yuanIf the depreciation method, net residual value and age are given in the question, the current book value can be calculated directly based on the original book value of the equipment, and the result is the same, understand?

The original book value of the equipment is 3 million, the original value of the production line is 10 million, and now the value of the production line is 5 million, then the value of the equipment is (300 1000) * 500

300 * 500 1000 can also be written as 300 1000 * 500, which is equivalent to the equipment is a part of the production line, and the equipment is depreciated in proportion to the original book value. That is, 300 (book value of equipment) 1000 (book value of production line) * 500 (depreciation).

The construction projects are classified according to the nature of the construction to reflect the direction of investment and use, study the investment effect, etc., and divide the construction projects into new construction projects, expansion projects, renovation or renovation projects, relocation projects, and restoration projects.

1. New projects: generally refer to enterprises, institutions and administrative units that have been under construction since the beginning of the year. 2. Expansion project:

Existing enterprises in factories or elsewhere to expand the production capacity of original products or increase the production capacity of new products. 3. Transformation or renovation projects: existing enterprises and institutions, technical transformation or renewal of existing facilities and technical conditions projects.

4. Relocation project: The original enterprises and institutions are relocated to another piece of land for various reasons. 5. Restoration project: Due to natural disasters and wars, the original enterprises and institutions will scrap all or part of the fixed assets owned by the original macro and reinvest in construction projects.

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.

Answer: The characteristics of the renovation of fixed assets include: large investment capital, long cycle, high risk, high technical content, and can effectively improve the production efficiency and competitiveness of the enterprise.

Explanation: The renovation of fixed assets is usually an investment behavior in which enterprises adopt new technologies, new equipment or improve old equipment in order to improve production efficiency and reduce production costs, and comprehensively upgrade and transform existing fixed assets. Therefore, this kind of behavior has prominent characteristics, requires a large amount of capital investment, has a long time cycle, high risk, and high technical content, but can effectively improve the production efficiency and competitiveness of enterprises.

Extended subparagraph: The first paragraph: the definition of the modernization and transformation of fixed assets.

Explain the basic concepts of fixed asset renovation, including what is the renewal and transformation of fixed assets, why it is necessary to carry out the renewal and transformation of fixed assets, etc.

The second paragraph: the characteristics of the modernization and transformation of fixed assets.

This paper introduces the characteristics of the renovation of fixed assets, including large investment capital, long cycle, high risk, high technical content, and can effectively improve the production efficiency and competitiveness of enterprises.

The third paragraph: the role of the modernization and transformation of fixed assets.

Explain the role of fixed assets modernization and transformation on enterprises, including improving production efficiency and competitiveness, reducing production costs, improving product quality, etc.

The fourth paragraph: practical cases of renovation and transformation of fixed assets.

Through the actual enterprise fixed assets renewal and transformation cases, deepen the understanding of fixed assets renovation, such as a construction machinery enterprise using new technology, new materials and new technologies to update the old equipment, thereby improving production efficiency and product quality, and gaining market competitive advantages.

The fifth paragraph: the prospect of the modernization and transformation of fixed assets.

Looking forward to the future development prospects of fixed asset renovation, the opportunities and challenges faced by fixed asset renovation, and putting forward relevant suggestions to provide reference for the practice of fixed asset renovation.

The modernization and transformation of fixed assets usually refers to the behavior of enterprises to partially or completely update and transform the original fixed assets to improve the performance of equipment, extend the service life and ensure production safety. Its main features include:

1.Modernization is carried out on the basis of the original, usually to upgrade or upgrade the existing equipment to improve the capacity and efficiency of the equipment.

2.Modernization and transformation is selective, according to the actual needs and economic benefits, the company will carry out the modernization and transformation of some key equipment or key links.

3.Modernization requires certain technical support, in addition to the company's own technical strength, sometimes need to introduce experts or technical service units to support to ensure the effectiveness and smooth implementation of the modernization.

4.The investment in modernization is relatively large, but the investment will be relatively small compared to the new equipment, which can save a certain amount of money. At the same time, when modernizing existing equipment, enterprises can better integrate new and old equipment, reduce conversion losses between equipment and implementation costs.

5.Modernization is one of the commonly used means for enterprises to improve productivity and enhance core competitiveness, which can improve the production efficiency of enterprises, reduce production costs, and increase economic and social benefits.

The modernization and transformation of fixed assets is the upgrading and transformation of existing fixed assets in order to improve production efficiency and reduce costs. Its characteristics mainly include the following aspects:

1.Sustainability: The modernization and transformation of fixed capital consumption production is a sustainable investment, which can allow enterprises to improve production efficiency and reduce costs without purchasing new equipment, and extend the life of the original equipment.

2.Technical: The renewal and transformation of fixed assets requires the application of advanced technology and equipment to meet the production needs of enterprises and improve production efficiency and product quality.

3.Economy: The renovation of fixed assets is an economic investment, which can improve the profitability and market competitiveness of enterprises without increasing their liabilities.

4.Flexibility: The renovation of fixed assets can be flexibly adjusted according to the production needs and market changes of the enterprise to meet the production needs and market needs of the enterprise.

In short, the renovation of fixed assets is the upgrading and transformation of existing fixed assets in order to improve production efficiency and reduce costs, which has the characteristics of sustainability, technology, economy and flexibility.

1.The characteristic of the renewal and transformation of fixed assets is that it must be carried out within a certain period of time to ensure the production and operation capacity and competitiveness of the enterprise.

2.The reasons for the modernization and transformation of fixed assets include technology upgrading, market demand changes, equipment aging, etc., which need to be updated to improve the production efficiency and product quality of enterprises.

3.The content of the renovation of fixed assets includes equipment renewal, technical improvement, process optimization, etc., which need to be specifically planned and implemented according to the actual situation of the enterprise.

At the same time, it is also necessary to consider factors such as capital, manpower, and time to ensure the smooth progress of the renovation.

Methods of depreciation of fixed assets: average method, workload method, double declining balance method and sum of years method, etc. In addition, the enterprise shall reasonably select the corresponding depreciation method of fixed assets within the scope of the foregoing, based on the expected realization method of the economic benefits related to fixed assets.

Article 32 of the Enterprise Income Tax Law stipulates that if the depreciation of fixed assets of an enterprise really needs to be accelerated due to technological progress and other reasons, the depreciation period may be shortened or the method of accelerated depreciation may be adopted.

In order to improve the performance of fixed assets and extend their service life, how to carry out accounting treatment when enterprises update and transform fixed assets?

Article 6 of Accounting Standards for Business Enterprises No. 4 - Fixed Assets stipulates that subsequent expenditures related to fixed assets that meet the recognition conditions specified in Article 4 of this standard shall be included in the cost of fixed assets; If it does not meet the recognition conditions stipulated in Article 4 of this standard, it shall be included in the profit or loss for the current period when it occurs.

Accounting Standard for Business Enterprises No. 4 - Fixed Assets" Application Guide: 2. The follow-up expenditure of fixed assets stipulates: "The follow-up expenditure of fixed assets refers to the renovation and repair expenses incurred in the process of use of fixed assets.

Subsequent expenditures such as the renovation and transformation of fixed assets that meet the recognition conditions specified in Article 4 of these Standards shall be included in the cost of fixed and differential assets, and if there is a part to be replaced, the book value shall be deducted per acre; The repair costs of fixed assets that do not meet the recognition conditions stipulated in Article 4 of these Standards shall be included in the profit or loss for the current period when incurred. ”

According to the above provisions, the follow-up expenditure of the regular replacement of fixed assets of the enterprise shall be handled in accordance with the provisions of the "Fixed Assets" standard on follow-up expenditure.

Generally speaking, the classification of capital expenditure or expensed expenditure is based on whether the fixed assets meet the criteria for recognition, rather than the size of the amount.

To do expense:

Borrow: management expenses, sales expenses, manufacturing expenses - maintenance costs.

Credit: raw materials, cash in hand, bank deposits, etc.

If it is eligible for capitalization: the original fixed assets are transferred to the fixed assets disposal first.

Borrow: Disposal of fixed assets.

Accumulated depreciation. Credit: Fixed Assets.

Transfer of works in progress:

Borrow: Construction in progress.

Credit: Disposal of fixed assets.

Add the amount of the maintenance part:

Borrow: Construction in progress.

Credit: raw materials, cash in hand, bank deposits.

Then transferred to fixed assets:

Borrow: Fixed assets.

Credit: Construction in progress.

Construction in progress is an asset account. The follow-up expenses related to fixed assets of the enterprise, including the daily repair costs, major repair costs, renovation expenses, and house decoration costs incurred by the fixed assets, shall be accounted for in this account if they meet the conditions for the recognition of fixed assets stipulated in the fixed assets standards; If the conditions for recognition of fixed assets are not met, they should be accounted for in the "management expenses" account, not in this account.

What does a fixed asset include?

Fixed assets are classified according to economic use, including fixed assets for production and operation and fixed assets for non-production and operation. According to the comprehensive classification, it includes fixed assets for production and operation, fixed assets for non-production and operation, leased fixed assets, fixed assets not needed, unused fixed assets, land, and fixed assets leased by finance.

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

Features: Not like inventory for external **. The useful life is generally more than one fiscal year.

Fixed assets in the purchase, use, lease, lease or failure after the repair and continue to use, there are different accounting treatments, let's talk about today, after the renovation of fixed assets, what kind of accounting treatment should be done? Let's take a look.

Accounting treatment of expense of subsequent expenses of fixed assets.

1. The fixed assets repair expenses incurred by the production workshop and the sales department of the administrative department.

Debit: Administrative Expenses Selling Expenses.

Credit: Bank Deposits Raw Materials.

2. Lease fixed assets for reconstruction (meet the conditions for capitalization): long-term amortized expenses.

Credit: Bank deposits are lacking.

When amortization is included in profit or loss:

Debit: Administrative Expenses Selling Expenses.

Credit: Long-term amortized expenses.

3. Reconstruction expenses that have been fully depreciated.

Renovation begins. Borrow: Construction in progress.

Accumulated depreciation. Credit: Fixed Assets.

Rapid closure occurs the cost of redressing and early construction.

Borrow: Construction in progress.

Credit: Bank Deposits Raw Materials.

In the reconstruction, the fixed assets are partially dismantled, and the materials are dismantled or put into storage.

Borrow: bank deposits, raw materials, etc.

Credit: Construction in progress.

Tax Payable – VAT payable (output tax).

Non-operating income and expenditure (calculated as the difference).

4. When the renovation is completed and can be delivered.

Borrow: Fixed assets.

Credit: Construction in progress.

The accounting treatment of modernized fixed assets is as follows:1. First of all, write the summary "accounting treatment of fixed assets renovation".

2. Then. Fill in the account number of the debit side and the debit account "Construction in progress" and the amount.

3. Then follow the same steps to write the credit number and the account "Fixed Assets" and the amount.

4. After writing the borrower, fill in the preparer and submit it to the reviewer for review.

Handling methods for the replacement and improvement of fixed assets1. Cost capitalization.

The method of recording the cost of replacement or improvement of national assets into an asset account has the assumption that the old component is so small that it can be depreciated to be negligible, otherwise the asset will be overvalued because one component contains two costs**.

2. Alternative method.

If the replaced fixed asset part is accounted for separately and its original cost and accumulated depreciation are not accounted for separately but its original cost and accumulated depreciation are known, the new fixed asset or fixed asset part is rerecognized at the new cost, the old part account is written off or the cost of the old part and the corresponding accumulated depreciation are written off in the fixed asset account, and the profit or loss is recognized. This idea is idealistic and therefore not easy to operate, and under normal circumstances, fixed capital components are not accounted for separately, and there is no way to know their book cost and accumulated depreciation.

3. Write-off accumulated depreciation method.

If the replacement and improvement of fixed assets extends the useful life of fixed assets, which means that the accumulated depreciation previously accrued is overmentioned, the replacement or improvement costs should be debited to the accumulated depreciation, so as to achieve the purpose of increasing the net value of fixed assets. This method is only suitable for replacement and improvement that can extend the life of fixed assets.