Scrapping application: the asset management department or relevant responsible person receives the scrapping application, including the detailed description, reasons, scrapping evaluation and other information of the fixed assets to be scrapped.
Asset evaluation: conduct asset evaluation to evaluate the residual value, recoverable value or scrap loss of scrapped assets. This may need to entrust a professional appraisal institution or appraiser for appraisal.
Decision-making approval: Scrapping applications go through internal approval process, and the relevant departments or management make approval decisions. Approval may involve cost-benefit analysis, compliance with laws and regulations, company strategy and other factors.
Asset scrapping confirmation: after the scrapping decision is approved, the asset management department confirms the accuracy of the scrapped assets and cancels them from the fixed assets register.
Asset disposal: according to the scrapping decision, choose appropriate asset disposal methods, such as auction, sale, scrapping treatment, donation, etc.
Financial treatment: according to the way of asset disposal, carry out corresponding financial treatment. Specific accounting treatment methods may include:
If it is sold, it shall be recorded according to the actual money received, and relevant expenses and scrapping losses shall be deducted.
If scrapped, the scrapped losses will be included in the income statement, and the fixed assets and accumulated depreciation accounts will be adjusted accordingly.
If a donation is made, the fixed assets account will be adjusted accordingly and the donation fee will be recorded.
Asset statement adjustment: according to the above treatment, adjust the relevant accounting subjects to ensure that the financial statements accurately reflect the disposal of assets scrapped.
It should be noted that the scrapping process of fixed assets of state-owned enterprises may be different due to internal regulations, policy requirements or regulatory requirements of specific industries. In practice, it is recommended to follow the company's internal regulations and relevant laws and regulations and consult financial professionals or certified public accountants to ensure accuracy and compliance. Solicit opinions on the evaluation problem.