**Accounting for the accounting treatment of fixed assets.
I. Introduction. Accounting fixed assets refer to fixed assets formed by or based on investment. These assets have an important place in the financial statements of the company because they are an important part of the assets and reflect the financial strength and asset status of the assets. This article will introduce the accounting treatment of fixed assets to help readers better understand and apply the relevant accounting standards.
2. Recognition and measurement of accounting fixed assets.
1.Recognition: The recognition of accounting fixed assets should meet the following conditions: first, the economic benefits related to the fixed assets are likely to flow in**; Second, the cost of the fixed asset can be reliably measured.
2.Measurement: **Accounting fixed assets should be measured on a historical cost basis, i.e., the actual cost at the time of purchase or construction as the recorded value. Subsequent improvement or repair costs should be included in the carrying amount of fixed assets.
3. Accounting treatment of fixed assets.
1.Initial Entry: Accounting fixed assets should be initially recorded based on actual costs after purchase or construction is completed. The operation is as follows: the "Fixed Assets" account is debited, and the "Bank Deposit" account is credited.
2.Provision for depreciation: **Accounting fixed assets shall be depreciated in accordance with the prescribed depreciation method. When depreciation is accrued, accounts such as "Business Activity Expenses" are debited and "Accumulated Depreciation of Fixed Assets" accounts are credited.
3.Improvements & Repairs: Accounting Fixed Assets may need to be improved or repaired during use. Improvements and repairs should be included in the carrying amount of fixed assets. The operation is as follows: the "Fixed Assets" account is debited, and the "Bank Deposit" account is credited.
4.Scrapping and disposal: **Accounting fixed assets may be scrapped or disposed of due to wear and tear, natural disasters and other reasons in the process of use. When scrapped or disposed of, accounting treatment should be carried out in accordance with relevant regulations. The specific operations are as follows: debit the "Asset Disposal Expenses" and other accounts, and credit the "Fixed Assets" account; At the same time, accounts such as "bank deposits" are debited and accounts such as "financial contributions payable" are credited.
Fourth, ** accounting fixed assets statement display.
*Accounting fixed assets should be presented in the financial statements. The specific presentation method is as follows: in the balance sheet, the balance of the "Fixed Assets" account should be listed under "Non-current Assets"; In the notes to the financial statements, information such as depreciation policy, improvement and repair of fixed assets should be disclosed.
V. Conclusions. This article introduces the accounting treatment methods of fixed assets in accounting, including recognition and measurement, initial entry, depreciation provision, improvement and repair, scrapping and disposal. These contents are very important for accountants because they help to accurately record and reflect the asset status and financial strength of the company. At the same time, this article also introduces the presentation method of accounting fixed assets in financial statements to help readers better understand and apply relevant accounting standards.
Autumn and Winter Check-in Challenge