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fixed asset, according to each type of user.
Level 1 account: According to the account
regulations issued by the Ministry of Finance
Level 2 account: Type of fixed asset
Level 3 account: Target users of fixed assets…
Fixed assets books and reports: The company
should prepare books and reports on the situation
of using of fixed assets according to each division,
reports on the increase or the decrease of fixed
assets by each source of capital, reports on fixed
assets by each fixed asset group.
Construction companies need to open
accounting books for the purpose of using fixed
assets, the situation on the use of fixed assets, the
efficiency of using fixed assets, the situation of
using fixed assets by each user.
This register is used to record the situation of
increase or decrease of fixed assets at the place
of use in order to manage the assets of the parts
already granted by the enterprise. At places
where using fixed assets such as department,
section, construction teams, etc. it is necessary
to use “fixed assets book using by each unit”
to monitor the situation of the increase or the
decrease of fixed assets managed by each unit.
Each using unit will have to have a separate book
in which writing down its fixed assets’ increase or
decrease according to each record of the increase
or the decrease, in chronological order of those
operations.
The fixed asset management accounting book
system provides sufficient information to the
manager in a timely manner. Therefore, the design
of the book form must meet certain requirements
and must be derived from the management
objectives of the unit manager while ensuring the
relationship between the general ledger and the
detailed accounting book.
Management accounting Report:
Fixed assets management accounting report is a
necessary source of information for administrator
at various levels, especially middle and high level
managers in the use of fixed asset effectively in
the enterprise.
Through thefixedassetmanagement accounting
report system will provide information to help
managers have a basis for planning, control, and
implementation to achieve the planned short-term
goals of using, managing effectively fixed asset.
However, for the preparation of management
accounting reports on fixed assets, construction
companies should ensure that:
- Fixed asset management accounting report
must be designed simply, easily to understand
and suitable for the information demands of
business managers.
- Fixed asset management accounting reports
must be developed in accordance with the specific
business objectives of the enterprise. Must be
built in accordance with the scope of supply of
management accounting information, and at
the same time to ensure the service of the state
management functions.
- Fixed asset management accounting reports
should be prepared on the basis of aggregated
data from the management accounting books
and be opened according to the management
requirements of the enterprise in combination
with other necessary information sources.
Construction companies need to make fixed
asset reports by each department using, according
to each capital source, make reports on fixed asset
increase and decrease by each subject.
Inside:
Making reports on fixed assets by each
department will help enterprises to attach
responsibility for preservation and use of assets
to each department, thereby helping businesses
improve accountability and efficiency in the use
of fixed assets.
To report fixed assets according to each source
of capital so that enterprises may grasp the
TABLE 2. FORM OF BOOK: FIXED ASSET BOOK BY SOURCE OF CAPITAL
No
Name of
property
FIRST
YEAR
INCREASE BY YEAR
DECREASE BY YEAR
Original
price
Depreciation The rest
value
Original price Depreciation The rest value Original price Depreciation The rest
value
Source: Suggested by the Author
