The concept and classification of fixed assets, their evaluation.
In the production process, together with objectslabor at the same time using means of labor or, in other words, fixed assets. These include equipment, machinery, inventory (both economic and production), as well as other tools of production, through which the activities of the organization are carried out. In addition, structures and buildings, transfer devices, which do not themselves affect the subject of labor, are also referred to as durable assets, but they create the required conditions for the implementation of the production process.
In order to generalize all the groupslong-term assets, the classification of fixed assets. All means of labor enterprises for a long period of time participate in production, while maintaining its original value. But, at the same time, they gradually grow old and wear out, and therefore reflect their value on the newly created product.
The concept, classification and valuation of fixed assetsare very important in accounting. It should be noted that in order for the property to be classified as a long-term asset, the following two conditions must necessarily be observed:
- Their useful use should be for a period of more than one year;
- The established limit of cost per unit of means of labor must be observed.
Classification of fixed assets is based on several characteristics:
- in accordance with the type of activity (for example, in mechanical engineering there will be some long-term assets, in construction completely different, and in trade third, etc.);
- by the nature of entrepreneurial activity (there are production and non-productive);
- on participation in the production and circulation process, they are divided into active and passive;
- by ownership of the business entity, fixed assets may be owned by the enterprise or leased;
- on the fact of use (in use, on reconstruction, in reserve, on conservation).
It should be noted that the concept and classificationfixed assets - this is not all that is desirable to know. Like everything else, the organization's long-term assets require proper detailed accounting. It is conducted with the aim:
- control over documentary registration and movement of funds in the context of separate groups and objects;
- control over their safety and effective use;
- correct and timely determination of depreciation for inclusion in production costs;
- reliable reflection in the accounting of liquidation and write-off of fixed assets;
- Accurate and timely reflection of the amounts spent for their repair;
- control over the integrity and safety of long-term assets that are under conservation.
Classification of fixed assets provides,that they can enter the organization from suppliers or as a result of construction. In accounting, when receiving funds from suppliers, a bill of lading (goods-transport), as well as an act of acceptance-transfer of the object (possibly group of objects) of fixed assets should be drawn up. If the assets of non-expendable property are received by the organization as a result of construction, acts on their acceptance and transfer are drawn up after its completion.
In addition to all of the above, long-termthe assets of the organization can be classified by type: instrument, vehicles, inventory, perennial plantations, productive and working cattle, and others. It should be noted that it is the classification of fixed assets by their kinds that underlies the creation of reports on the actual availability of the organization's assets to the movement.