REVIEW
of
FINANCE -
Apr. 2018
37
of using the fixed asset.
Encoding for each type of fixed asset will
create the unity among departments, sections in
the enterprise to help enterprises easily monitor,
check and compare fixed assets, increase binding
on fixed asset users.
Estimate purchasing, renting fixed assets
The renewal of technology and machinery
equipment in the context of the industrial
revolution 4.0 for construction firms are very
urgent to help enterprises improve construction
quality, improve labour productivity, reduce
costs and increase competition in the market.
Therefore, the enterprise’s innovation, investment
in fixed assets is inevitable.
Fixed assets often have great value, so that the
purchase of fixed assets has a significant impact
on the cash flow of the construction enterprises.
Therefore, it is necessary to make estimates of
the purchase of fixed assets to help enterprises
to be proactive in capital, at the same time
it is necessary to plan to buy fixed assets in a
reasonable way.
The bases for planning fixed asset procurement
are: the demand of the construction market, the
number of construction contracts achieved by the
enterprise in the planning period, the long-term
forecast of the construction investment projects in
the coming time, the requirements for enhancing
prestige for bidding and the status of existing
fixed assets of the enterprises.
In order to invest in machinery and equipment,
business managers need to calculate the economic
efficiency between purchasing their fixed assets
or renting fixed assets to make a rational decision.
If they equip fixed assets too much but there is
no any construction contract, the enterprises will
suffer loss due to stagnant capital. However, if
the enterprises do not have enough equipment,
they will not ensure the construction progress of
the contract, so they are not able to compete in
bidding.
Collecting information about fixed assets
Records, accounts, books and reports: In order
to reflect fixed assets according to the needs of
business managers, besides the compulsory
documents system prescribed by the Ministry
of Finance, enterprises should make additional
records relating to the fixed assets as required by
the managers as follows:
Documents to use:
Companies need to establish additional
documents such as documents related to the
purpose of using fixed assets, documents related
to places of using fixed assets, documents related
to the users of fixed assets, for example, the records
of the inventory of fixed assets at the place of use,
the minutes of inventory of fixed assets according
to the purpose of use, etc.
Accounting accounts:
Creating the system of bookkeeping accounts
should be established based on the system of
bookkeeping accounts issued by the Ministry of
Finance, thereby creating a systemof bookkeeping
accounts according to objectives and management
requirements of the business administrator.
The accounting account should be opened in
details to each type of fixed asset, each group of
fixed asset, each item of fixed asset, each section
using fixed assets.
The fixed assets accounts must be detailed into
account level 2, 3, 4 etc. detailed by each type of
TABLE 1. FORM OF BOOK: DETAILED BOOK OF FIXED ASSETS UNDER THE OBJECT OF USE
Increases in fixed assets
Decrease in fixed assets
Documents Name, code,
fixed asset
specification
Unit
Quantity Price Documents Name, code,
fixed asset
specification
Unit
Quantity Price
code
Date, month
code
Date,
month
Total
Total
Source: Suggested by the Author
