Differences of Accounting and Tax Affairs Disposal about Fixed Assets

There are different means for dealing with fixed assets by Enterprise Income Tax Law or by new accounting criteria for enterprises. These differences exist not only in initial measurements when the enterprise obtain fixed assets by means of purchasing outside, selfconstructing, financial leasing,donations receiving, investment, nonmonetary assets exchanging and debt restructuring and so on, but also in subsequent expenditure calculations such as accrued depreciation, recognize of asset impairment loss and other subsequent expenditure calculations after the fixed assets are put into service in enterprises. Generally speaking, Different representing subjects and following principles leads to different treatment means on fixed assets, which is a necessary result. However, for a sustainable enterprise, this difference which will be offset by overall tax balance in the existing period of fixed assets.