Is off the books fixed assets a fixed asset profit?

According to the Accounting Standard for Business Enterprises No. 4 - Fixed Assets

and the relevant provisions of the application guide, the profit of fixed assets should be recorded as an error in the previous period in the account of "profit and loss adjustment of previous years", but it was originally regarded as a profit or loss for the current period, and the reason why the new standard treats the profit and loss of fixed assets as an error in the previous period.

The accounting treatment is based on the theory that the possibility of these assets, especially fixed assets, being profitable due to factors beyond the control of the enterprise is extremely small, or even impossible.

If the enterprise is caused by its own "subjective" reasons, or if it is caused by accounting errors such as undercounting or omitting these assets in the previous accounting period, it should be corrected according to the errors in the previous period. Under the old standard, it was directly included in the non-operating income.

The new standard adjusts the undistributed profits through the adjustment of profits and losses of previous years, making the statements of enterprises more transparent, which can also control the possibility of artificial mediation profits to a certain extent.

Hello, a little through the online school your questions.

Off-the-books fixed assets are fixed assets that are not recorded in the account, such as fixed assets that are still in use after depreciation; The fixed assets of the inventory profit are the fixed assets that are not recorded during the inventory, so the fixed assets of the inventory profit are a kind of off-the-books fixed assets.

Hope it helps.

After the implementation of the new accounting standards in 2006, the accounting for the surplus of fixed assets has changed.

The profit and loss of fixed assets in the standard are usually included in the account of "property loss and excess to be disposed of - loss and excess of fixed assets to be disposed of" before the approval of resale, and then transferred from this account to the account of "income from business offices" after the approval of resale. According to the new standard, the profit and loss of fixed assets should be recorded as an error in the previous period in the account of "profit and loss adjustment for previous years". The profit and loss of fixed assets is no longer included in the profit or loss of the current period, but is regarded as an accounting error in the previous period.

The monetary performance of fixed funds as fixed assets also has the following characteristics:

1. The cycle period of fixed funds is relatively long, which does not depend on the production cycle of the product, but on the service life of the fixed assets.

2. The value compensation and physical renewal of fixed funds are carried out separately, the former is gradually completed with the depreciation of fixed assets, and the latter is realized by using the depreciation accumulated in ordinary times when the fixed assets cannot be used or are not suitable for use.

3. In the purchase and construction of fixed assets in Ranzhou, it is necessary to pay a considerable amount of monetary funds, and this investment is a one-time investment, but the investment is carried out through the depreciation of fixed assets.

The balance of the fixed assets in surplus according to the market** or appraised value of the same or similar fixed assets after deducting the estimated depreciation according to the newness of the fixed asset shall be debited to the "Fixed Assets" account and credited to this account (loss and excess of non-current assets to be disposed of).

When all kinds of materials, finished products, commodities, fixed assets, cash, etc. are processed after approval in accordance with the management authority, this account (loss and excess of current assets to be disposed of, loss and excess of non-current assets to be disposed of) shall be debited according to the balance of this account, and the account of "non-operating income" shall be credited.

1. Tax treatment of fixed asset surplus.

1 Item 4 of Article 58 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that the fixed assets of the same type shall be calculated on the basis of the full replacement value of the same type of fixed assets, that is, the balance after deducting the depreciation estimated according to the degree of newness of the fixed assets shall be taken as the recorded value according to the market ** or appraised value of the same or similar fixed assets. The initial measurement of fixed assets is accounted for in accordance with the tax law.

2 Article 22 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that the other income mentioned in Item 9 of Article 6 of the Enterprise Income Tax Law refers to the income obtained by the enterprise in addition to the income specified in Paragraphs 1 to 8 of Article 6 of the Enterprise Income Tax Law, including the income from the surplus of enterprise assets, the income from the deposit of the packaging materials that have not been returned within the time limit, the payable that cannot be repaid, the receivables that have been recovered after the treatment of bad debt losses, the income from debt restructuring, the income from subsidies, the income from liquidated damages, the income from foreign exchange, etc., that is, the surplus of fixed assets. In the tax law, it is included in the taxable income of the current period as the surplus income of assets.

1) Enterprises implement the "Accounting Standards for Small Enterprises", and there is no fiscal and tax difference.

2) If an enterprise implements the "Accounting Standards for Business Enterprises", it is regarded as an accounting error in the previous year, and it is not regarded as the current income through the account of "profit and loss adjustment of the previous year", and the tax law is included in the taxable income of the current period as the surplus income of assets. When enterprise A makes an annual declaration, it does not fill in the "Income Schedule" in Schedule 1 of the annual tax return of enterprise income tax, but directly fills in the "increase amount" of 60,000 yuan in line 19 of Schedule 3 "Tax Adjustment Schedule" in line 19 "18 and others".

3. If the fixed assets are abnormal, it is recommended that the enterprise complete the explanation of the handling of the inventory (including the handling opinions signed by the management and the replacement value assessment report and other documentary evidence) for the tax authorities to check.

2. Accounting treatment of inventory loss of fixed assets.

The inventory loss of fixed assets refers to the situation that the inventory of fixed assets is less than the number on the book when it is found during the inventory of fixed assets. For the inventory loss of fixed assets, it is necessary to find out the cause and fill in the "Fixed Assets Inventory Loss Report". Fill in the fixed asset number, name, model, quantity, original value, depreciation, shortage and damage reasons in the report form, and report it in accordance with the prescribed procedures.

1 Before approval (when discovered):

Borrow: Loss or overflow of property to be disposed of.

or) Borrow: Accumulated depreciation.

Credit: Fixed Assets.

2 After approval:

Borrow: Non-operating expenses - inventory loss of fixed assets.

In the daily production and operation activities of the enterprise, the enterprise needs to regularly take stock of fixed assets, and when the fixed assets are counted, there is a situation of fixed assets surplus, how to do the accounting?

Borrow: Fixed assets.

Credit: Accumulated depreciation.

Prior Year Profit and Loss Adjustments.

Debit: Profit and loss adjustments for prior years.

Credit: Tax Payable – Income Tax Payable.

Debit: Profit and loss adjustments for prior years.

Credit: Profit Distribution – Undistributed Profits.

Accounting treatment of inventory loss of fixed assets.

The fixed assets of an enterprise that are losing money in the process of property inventory shall be accounted for through the account of "property loss and excess to be disposed of - loss and excess of fixed assets to be disposed of", and the loss caused by the inventory loss shall be accounted for through the account of "non-operating expenses - inventory loss and loss" and shall be included in the profit or loss for the current period.

Before Approval:

Borrow: Loss and excess of property to be disposed of - Loss and excess of fixed assets to be disposed of.

Accumulated depreciation. Provision for impairment of fixed assets.

Credit: Fixed Assets.

After the approval of the report.

Recoverable Insurance Compensation or Fault Compensation:

Debit: Other receivables.

Credit: Property Loss and Excess to be Handled - Loss and Excess of Fixed Assets to be Treated.

By the amount that should be included in non-operating expenses:

Borrow: Non-operating expenses - inventory loss.

Credit: Property Loss and Excess to be Handled - Loss and Excess of Fixed Assets to be Treated.

Accounting treatment related to the disposal of fixed assets.

Borrow: Disposal of fixed assets.

Accumulated depreciation. Provision for impairment of fixed assets.

Credit: Fixed Assets.

Borrow: Disposal of fixed assets.

Credit: Bank deposits.

Tax Payable – VAT payable.

Borrow: Bank deposit.

Raw materials. Credit: Disposal of fixed assets.

If you use financial software, you should find the card of the fixed asset in the fixed asset card and add the content.

Accounting entries for fixed assets that are omitted:

1. Supplementary credit for fixed assets.

Borrow: Fixed assets.

Credit: Bank Deposits - ** Line.

2. Retrofit depreciation.

Debit: Profit and loss adjustments for prior years.

Credit: Accumulated depreciation.

3. Carry forward the profit and loss of previous years.

Debit: Profit distribution - undistributed profit.

Credit: Prior Year Profit and Loss Adjustment.

Data expansion: According to the internal control management system of the enterprise, the enterprise should conduct an inventory of assets on a regular basis, at least once a year at the end of each year. Therefore, at the end of each year, the enterprise should conduct an inventory of fixed assets at least once.

As a result of the inventory, there may be a profit or loss of fixed assets, or the fixed assets may be damaged or even scrapped. According to the results of different inventory, different fiscal and tax treatments should be made. 1. Accounting treatment of fixed assets (1) the implementation of the accounting standards for business enterprises or the accounting system for enterprises; The possibility of an enterprise's fixed assets making a profit is extremely small, and the company's fixed assets must be undercounted or omitted from the previous accounting period, and it should be corrected as an error in the previous period.

The fixed assets of the enterprise that are profitable in the property inventory should be treated as errors in the previous period. The fixed assets of the surplus should first be accounted for through the "profit and loss adjustment of previous years" account, and the fixed assets should be valued and recorded according to the replacement cost method.

The recorded value of a fixed asset shall be determined in accordance with the following provisions: if there is an active market for the same or similar fixed asset, the recorded value shall be taken as the recorded value according to the market ** of the same or similar fixed asset, minus the estimated value loss of the asset according to the newness of the asset;

If there is no active market for the same or similar fixed assets, the present value of the expected future cash flows of the fixed asset shall be recorded as the recorded value.

If the results of the inventory are inconsistent with the book records, the reasons shall be ascertained and processed before the closing of the period after approval by the general meeting of shareholders or the board of directors, or the meeting of managers (factory directors) or similar institutions in accordance with the management authority stipulated in the internal control system of the enterprise.

The profit of fixed assets is recorded as follows:

1. Enterprises that implement the "Accounting Standards for Small Enterprises" should carry out accounting through the account of "property loss and excess to be disposed of", and the specific entries are:

Borrow: Fixed assets.

Credit: Accumulated depreciation.

Pending property loss and overflow.

Borrow: Loss or overflow of property to be disposed of.

Credit: Non-operating income.

2. Enterprises that implement the "Accounting Standards for Business Enterprises" should be corrected through the "profit and loss adjustment of previous years" account, and the specific entries are as follows:

1) When it is found that the fixed assets are in surplus:

Borrow: Fixed assets.

Credit: Accumulated depreciation.

The profit and loss of previous years were adjusted to the same level.

2) Adjustment of income tax:

Debit: Profit and loss adjustments for prior years.

Credit: Tax Payable - Income Tax Payable.

3) Carry forward the profit and loss adjustment of the previous year, and if the surplus reserve is involved, the "surplus reserve" account should also be adjusted

Borrowing from the model: Profit and loss adjustments for previous years.

Credit: Profit Distribution – Undistributed Profits.

Surplus Reserve – Statutory surplus reserve.

Fixed asset inventory profit means that the fixed assets have not been recorded or exceeded the book quantity in the inventory process. So how to deal with the accounting treatment of fixed asset surplus?

Accounting entries for the profit and earnings of fixed assets.

Borrow: Fixed assets.

Credit: Prior Year Profit and Loss Adjustment.

Adjusted Income Tax:

Debit: Profit and loss adjustments for prior years.

Credit: Tax Payable – Income Tax Payable.

Carry forward prior year profit and loss adjustments:

Debit: Profit and loss adjustments for prior years.

Credit: Surplus Reserve – Statutory Surplus Reserve.

Profit distribution - the balance base is not distributed profits.

Accounting entries for inventory losses on fixed assets.

Before Approval:

Borrow: Loss and overflow of property to be disposed of - to be disposed of in Dali fixed assets.

Accumulated depreciation. Provision for impairment of fixed assets.

Credit: Fixed Assets.

After the approval of the report.

Debit: Other receivables.

Credit: Property Loss and Excess to be Handled - Loss and Excess of Fixed Assets to be Treated.

By the amount included in non-operating expenses:

Borrow: Non-operating expenses - inventory loss.

Loan Feng learned: property loss and excess to be disposed of - loss and excess of fixed assets to be disposed of.

What is a pending property loss?

"Property loss and excess to be disposed of" is an asset class account, which accounts for the profit, loss and damage of various property and materials that have been identified by the enterprise in the process of property inventory. However, it should be noted that this account is a transitional account, with an increase in income (or a decrease in costs) on the credit side and an increase in the registration expense on the debit side, such as a surplus on current assets to offset administrative expenses.

The "Pending Property Loss and Surplus" account shall be set up for detailed accounting, such as "Pending Loss and Excess of Fixed Assets" and "Pending Disposal of Current Asset Loss and Surplus".

The loss or excess of the property to be disposed of is directly related to the asset before the approval is reported, and is directly related to the profit or loss for the current period after the approval is reported.

Fixed assets should be accounted for at the actual cost at which they were destroyed at the time of acquisition. Specifically: (1) The purchased fixed assets shall be recorded according to the actual purchase price paid or the original book value of the unit sold (deducting the original installation cost), packaging costs, transportation and miscellaneous expenses and installation costs.

2) Self-built fixed assets shall be accounted for according to all expenditures actually incurred during the construction process. The interest on borrowings and related expenses of fixed assets incurred before the fixed assets have been delivered for use or put into use but the final accounts have not yet been completed, as well as the exchange differences of foreign currency borrowings, shall be included in the value of fixed assets; After that, the interest and related expenses of the surplus borrowings and the exchange differences of foreign currency borrowings shall be included in the profit or loss for the current period. Fixed assets that have been put into use but have not yet gone through the handover procedures can be recorded at the estimated value first, and then adjusted after the actual value is determined.

3) The solid filial piety pure fixed assets invested by other units shall be recorded according to the appraisal confirmation or the ** agreed in the contract or agreement. (4) The fixed assets leased by financial lease shall be recorded according to the lease agreement to determine the purchase price of equipment, transportation costs, insurance premiums on the way, installation and commissioning fees and other expenses. (5) For fixed assets that are reconstructed or expanded on the basis of the original fixed assets, the original book price of the original fixed assets shall be subtracted from the valuation income incurred in the process of reconstruction and expansion, plus the increased expenditure due to the reconstruction and expansion.

6) The value of the donated fixed assets shall be determined according to the market ** of the same type of assets or relevant vouchers. All expenses incurred when accepting the donation of fixed assets shall be included in the value of fixed assets. (7) Fixed assets with surplus shall be recorded at the full replacement value.

Accounting Entries Credit: Fixed Assets Credit: Bank Deposits.