The current value and the increase or decrease of all fixed assets need to be recorded and monitored by accountants according to the original price in account 211. In the article below, MISA MeInvoice will guide businesses in detail on how to account for account 211 – Fixed assets.
See more: How to calculate net fixed assets in financial statements
Table of Contents Hide
1. Accounting principles for account 211 – Tangible fixed assets
2. Structure and reflection content of account 211 – Tangible fixed assets
3. Accounting method for some major economic transactions of account 211 – Tangible fixed assets
3.1. Accounting for increase in tangible fixed assets
3.2. Accounting for reduction of tangible fixed assets
3.3. Accounting for handling tangible fixed assets when taking inventory at the time of determining
enterprise value for equitization of 100% state-owned enterprises
ccounting principles for account 211 – Tangible fixed assets
Account 211 tangible fixed assets
a) Account 211 is the account used by enterprises to reflect the current value and the increase and decrease of all tangible fixed assets at original price.
b) Tangible fixed assets are assets in physical form cambodia telegram data held by an enterprise for use in production and business activities in accordance with the standards for recording tangible fixed assets.
c) Tangible assets with independent structures or many separate asset parts linked together to form a system to perform one or several specific functions. If any part is missing, the whole system cannot
If all four criteria below are simultaneously
satisfied, they are artificial Power in dream analysis considered fixed assets:
The enterprise is certain to obtain future economic benefits from the use of that asset;
The cost of the asset must be measured reliably;
Assets with consumer data a useful life of 1 year or more;
Assets have value according to current regulations.
In the case of a system consisting of many separate assets linked together, in which each component has a different usage time and if a certain component is missing, the whole system can still perform its main function, but due to the requirements of management and use of fixed assets, it is required to manage each asset component separately and each asset component, if simultaneously satisfying the four standards of fixed assets, is considered an independent tangible fixed asset.
For working or product-producing animals, if each animal simultaneously satisfies all four criteria of
fixed assets it is considered a tangible fixed asset.
For perennial gardens, if each garden plot or tree satisfies all four criteria of fixed assets, it is also considered a tangible fixed asset.
d) The value of tangible fixed assets is reflected in Account 211 at original cost. Accountants must monitor the original cost of each fixed asset in detail. Depending on the source of formation, the original cost of tangible fixed assets is determined as follows:
d1) The original cost of a tangible fixed asset purchased includes: Purchase price (excluding trade discounts and rebates), taxes (excluding refundable taxes) and costs directly related to putting the asset into a state of readiness for use such as site preparation costs, initial transportation and loading and unloading costs, installation and testing costs (minus (-) recoveries of products and scrap from testing), costs for experts and other directly related costs. Interest costs incurred when purchasing completed fixed assets (fixed assets that can be used immediately without going through the construction investment process) are not capitalized into the original cost of fixed assets.
