What Is an Asset Size?

The scale of assets refers to the existing total assets or fixed assets owned or controlled by an enterprise, a natural person, or the state. With the development of an enterprise, the asset scale of the enterprise will increase. Sometimes it also means not the assets of the enterprise, but the total assets that the enterprise can control. For example, the asset size of a fund company mainly refers to the total assets of others under its trust.

Asset size

Asset size refers to the enterprise,

Value composition of fixed assets

In the process of confirming the value composition of fixed assets, the principle that should be paid attention to is: according to different sources of fixed assets, determine its different value composition, as follows:

(1) For purchased fixed assets that can be used without going through the construction process, the booked value shall be the actual paid purchase price, packaging costs, transportation costs, installation costs, and related taxes paid. The foreign-invested enterprise receives the value-added tax refunded by the tax authority for purchasing domestic equipment, and deducts the booked value of the fixed assets.

(2) For self-built fixed assets, all expenditures incurred before the construction of the asset reaches its intended use will be recorded as the book value.

(3) The fixed assets invested by investors shall be the recorded value based on the value recognized by the investing parties.

(4) For fixed assets financed by lease, the lower of the original book value of the leased assets and the present value of the minimum lease payments on the lease start date shall be taken as the recorded value. If the proportion of the financial lease assets to the total assets of the enterprise is equal to or less than 30%, on the lease start date, the enterprise may also use the minimum lease payment as the booked value of the fixed assets.

(5) In the case of alteration or expansion on the basis of the original fixed assets, the book value of the original fixed assets plus the expenditure incurred before the asset is ready for its intended use due to alterations or expansions shall be reduced by the process of alterations or expansions The variable income generated during the period shall be used as the book value.

(6) If the debtor accepts the fixed assets acquired by the debtor in the form of non-cash assets to settle debts, or the debt receivables are exchanged for fixed assets, the book value of the debts receivable plus relevant taxes and fees payable shall be taken as the recorded value. If the premium is involved, the book value of the fixed assets transferred shall be determined according to the following rules:

(1) If the premium is received, the book value of the debt receivable minus the premium and the relevant taxes and fees payable shall be taken as the book value.

(2) Where the premium is paid, the book value of the debt receivable plus the paid premium and related taxes and fees payable shall be taken as the book value.

(7) For fixed assets exchanged in non-monetary transactions, the book value of the exchanged assets plus the relevant taxes and fees payable shall be taken as the book value. If the premium is involved, the booked value of the fixed assets shall be determined in accordance with the following provisions:

(1) When the premium is received, the book value of the assets to be exchanged plus the gains to be recognized and related taxes and fees payable minus the premium shall be taken as the book value.

(2) If the premium is paid, the book value of the assets to be exchanged plus the relevant taxes and premiums payable shall be taken as the book value.

(8) The fixed value of donated fixed assets shall be determined in accordance with the following provisions:

(1) If the donor provides relevant vouchers, the amount indicated on the vouchers plus the relevant taxes and fees payable shall be taken as the recorded value.

(2) If the donor does not provide relevant evidence, the booked value is determined in the following order:

If there is an active market for similar or similar fixed assets, the estimated amount based on the market price of similar or similar fixed assets, plus relevant taxes and fees payable shall be taken as the book value;

If there is no active market for similar or similar fixed assets, the present value of the estimated future cash flows of the fixed assets that are to be donated shall be used as the book value.

(3) If the old fixed assets donated are old ones, the value determined in accordance with the above method, minus the value estimated from the old and new levels of the asset, will be used as the recorded value.

(9) For a fixed asset that is profitable, the balance shall be the booked value at the market price of similar or similar fixed assets minus the estimated value of the asset s old and new.

(10) For fixed assets that have been approved for free transfer, the book value of the transferred unit plus related expenses such as transportation and installation costs incurred shall be taken as the book value.

In addition, it is necessary to pay attention to the following points: The booked value of fixed assets should also include related taxes such as deed tax paid by the enterprise to obtain fixed assets, land occupation tax, vehicle purchase tax, etc.

Whether an enterprise's borrowing interest expenses and related expenses for obtaining fixed assets are included in the cost of fixed assets is an important issue in the valuation of fixed assets. The capitalization of borrowing costs should generally be based on whether the fixed assets are delivered or used as a time limit, rather than on completion of the final accounts. That is, the borrowing costs incurred before the fixed assets are delivered for use should be included in the cost of the fixed assets purchased and subsequently incurred. Shall be included in the current profit and loss. If the purchase and construction of fixed assets is interrupted, the borrowing costs should be handled in different situations:

(1) If the acquisition and construction of a fixed asset is abnormally interrupted for a long period of time, the borrowing costs incurred during the interruption period will not be included in the cost of the acquisition and construction of the fixed asset and shall be included in the current profit and loss until the acquisition and construction restarts Time. After the purchase and construction restarted, capitalization continued.

(2) If the interruption is the procedure necessary to bring the purchased and constructed fixed assets to a usable state, the expenses incurred during the interruption period shall still be included in the cost of the purchased and constructed fixed assets.