If the provisional valuation is recorded, the value of the fixed assets can be accounted for according to the contract price.
Borrow: Fixed assets - contract price
Loan: Accounts payable (contract price - prepayment)
What is the accounting characteristics of fixed assets?
Fixed assets refer to non-monetary assets held by enterprises for the production of products, provision of labor services, rental or operation management, and whose use time exceeds 12 months, and the value reaches certain standards, including houses, buildings, machinery, machinery, and transportation. Tools and other equipment, appliances, tools, etc. related to production and business activities. Fixed assets are the labor means of enterprises and the main assets on which enterprises depend for production and operation. From the perspective of accounting, fixed assets are generally divided into fixed assets for production, fixed assets for non-production, fixed assets for lease, unused fixed assets, fixed assets without fixed assets, fixed assets for financial leases, and fixed assets for donations.
From the perspective of purchasing fixed assets with VAT deductible input tax, fixed assets refer to:
1. Machines, machinery, transportation tools, and other production-related equipment, tools, and appliances that are used for more than one fiscal year.
2. Items that are not used for the main equipment of production and operation for more than 2 years. (In 2007, the new accounting standards for the fixed value of fixed assets were removed. As long as the company believes that the service life is greater than one fiscal year, it can be recognized as a fixed asset, and depreciation is deducted according to a certain depreciation method.)
3. The service period is longer.
4. The unit value is large.xx