The fixed assets allocated by the administrative unit refer to the transfer of the original fixed assets from one place to another when the transfer, exchange or donation of assets is carried out within the administrative unit. For this type of fixed asset accounting, it is necessary to determine the specific accounting treatment according to the specific situation. Here are some common scenarios and corresponding crediting methods:
1.Purchase:If the administrative unit acquires a new fixed asset by way of purchase, it shall be credited to the fixed asset account in accordance with the amount actually paid;At the same time, depending on the nature of the purchased fixed assets, they can be classified as intangible assets or other long-term assets.
2.Rental:When an administrative unit uses the fixed assets of other units for business activities, it can obtain the right to use the fixed assets by signing a lease contract. In this case, the recorded amount of the fixed asset should include two parts: one is the lease expense (i.e., rent) and the other is the depreciation expense. The payment of lease expenses is generally calculated in the form of annual rent, while depreciation expense is the accumulated depreciation amount calculated based on factors such as the original value and service life of fixed assets. Therefore, lease expenses and depreciation expenses need to be recorded separately under different accounts in the fixed asset account.
3.Assignment:If the administrative unit decides on the fixed assets it holds, then an accounting adjustment needs to be made before the administrative unit decides. First of all, it is necessary to confirm whether the original value of the asset has been impaired, and if so, the value of the fixed asset needs to be reduced accordinglySecondly, the difference between the ** proceeds and the original price needs to be recognized as non-operating income or non-operating expenses. Finally, the balance in the fixed asset account needs to be adjusted to the net value after the sale.
4.Gift without compensation: If an administrative unit donates a fixed asset to another person without compensation, the original cost of the fixed asset needs to be subtracted from the total assets of the administrative unitAccordingly, they are recorded in the balance sheet as accounts such as "Undistributed Profits" or "Surplus Reserve" under the "Liabilities" item.