Extended data:
Fixed assets refer to houses, machines, buildings, means of transport and other equipment, tools and appliances related to production and operation with the service life of an enterprise exceeding 1 year. It is the labor means of enterprises, and it is also the main asset on which enterprises rely for production and operation.
Fixed assets are divided into production fixed assets, non-production fixed assets, unnecessary fixed assets, financial leasing fixed assets and so on from the accounting point of view.
1 accounting characteristics
From the perspective of purchasing fixed assets with VAT deducted from input tax, fixed assets refer to:
1. Machines, machinery, means of transport and other production-related equipment, tools and appliances with a service life exceeding one fiscal year.
2. Items that have a service life of more than 2 years and do not belong to the main equipment for production and operation. (The new accounting standard for 7 years cancels the restriction on the recognized value of fixed assets. As long as the company thinks it can and its service life is longer than one fiscal year, it can be recognized as fixed assets and depreciated according to a certain depreciation method. )
3. Long service life.
4. The unit value is large.
The provisions here are smaller than those in the Accounting Standards for Business Enterprises, mainly excluding real estate such as houses and buildings, because the sales of houses and buildings pay business tax and do not pay value-added tax.
The English-Chinese Dictionary of Securities Investment by the Commercial Press explains: Fixedasset. First name. Commonly used plural. The tangible assets with a long life cycle used by the company are fixed assets, such as factories and machines. These assets usually cannot be converted into cash immediately, but the company can withdraw depreciation every year according to accounting and tax regulations.
Physical form of fixed capital
Belonging to the labor materials used to change or influence the labor object in the production process of products, it is the physical form of fixed capital. Fixed assets can play a role in the production process for a long time and keep the original physical form for a long time, but their value is gradually transferred to the product cost with the production and operation activities of enterprises, and constitutes an integral part of the product value. According to the important principle, an enterprise divides the labor materials into fixed assets and low-value consumables according to their service life and original value. For labor materials with large original value and long service life, they are accounted for according to fixed assets; For labor materials with small original value and short service life, they are accounted for according to low-value consumables. In China's accounting system, fixed assets usually refer to houses, buildings, machines, machinery, means of transport and other equipment, appliances and tools related to production and operation with a service life of more than one year.