Asset confirmation: first of all, we must confirm the authenticity and integrity of land property rights and determine the ownership party of land property rights. Upon confirmation, the land is the company's asset.
Valuation included in book value: According to accounting standards, companies need to include land in book value according to fair value, which can be determined by the evaluation results of independent appraisers.
Accounting treatment: after the assets are confirmed and included in the book value, the company needs to include the land in the fixed assets account and adjust the book value and depreciation basis of the fixed assets accordingly.
Depreciation accrual: For ancillary buildings such as factories on the land, the company needs to accrue depreciation expenses in accordance with the methods stipulated in accounting standards.
In short, the company needs to correctly account for the existing factory land acquired by court auction in accordance with the provisions of accounting standards.