Accounting treatment of fixed assets impairment
At the end of the period, when there are signs of impairment of fixed assets, if the recoverable amount is lower than the book value, the impairment loss of fixed assets will be accrued.
Debit: The recoverable amount of asset impairment loss is lower than the book value.
Loan: Fixed assets impairment reserve
What subject does the fixed assets impairment reserve belong to?
Fixed assets impairment reserve belongs to asset category. Fixed assets impairment reserve is the allowance account of fixed assets, which is increased at the lender and decreased at the borrower.
The recoverable amount of fixed assets is lower than its book value due to damage, outdated technology or other economic reasons. This situation is called impairment of fixed assets. If the recoverable amount of a fixed asset is lower than its book value, the impairment reserve shall be accrued according to the difference between the recoverable amount and its book value and included in the current profit and loss.
Depreciation entry of fixed assets
Debit: depreciation of fixed assets used in the process of self-built fixed assets in construction projects.
Depreciation of manufacturing expenses of fixed assets in basic production workshop.
Depreciation management expenses of fixed assets accrued by management department.
Depreciation of sales expenses accrued by the sales department from fixed assets.
Depreciation of fixed assets leased by other business expenses.
Credit: accumulated depreciation
What does fixed assets include?
1. Houses and buildings refer to all houses and buildings whose property rights belong to this enterprise.
2. General office equipment refers to the office and business equipment commonly used by enterprises.
3, special equipment, refers to all equipment belonging to the enterprise dedicated to a job.
4. Cultural relics and exhibits refer to various cultural relics and exhibits of cultural institutions such as museums and exhibition halls.
5. Books refer to books of professional libraries and cultural centers and business books of units.
6. Transportation equipment refers to various means of transportation used by the logistics department.
7 machinery and equipment, mainly machine tools, power machines, tools and standby generators used by the logistics department of the enterprise, as well as hospital instruments, testing instruments and medical equipment.
8. Other fixed assets refer to fixed assets that are not included in the above categories. The competent department may appropriately divide the above categories according to the specific circumstances, and may also appropriately divide the above categories to increase the types.