What should I do if the fixed assets of public institutions are scrapped without physical objects?

If the fixed assets of public institutions have no physical objects after being scrapped, that is, they cannot be disposed of in the form of physical objects, they can be handled according to the following steps:

Asset scrapping confirmation: confirm that the fixed assets have reached the scrapping standard and can no longer be used or disposed of.

Asset evaluation: conduct asset evaluation to determine the estimated value or residual value of scrapped assets. This can be done by entrusting a professional appraisal agency or appraiser to comprehensively consider the service life, technical condition and market value of assets.

Record the scrapped losses: according to the assets evaluation results, determine the estimated value of scrapped assets. If the estimated value of scrapped assets is lower than its original value or residual value, scrapping losses will occur. In accounting records, waste loss needs to be included in the income statement.

Debit: Scrap Loss Account

Loan: fixed assets account

Voucher record: according to the above accounting treatment, make corresponding accounting voucher records. Ensure that the voucher contains necessary information, such as the description, amount and retirement date of the asset.

Statement preparation: During the preparation of financial statements, the scrapped losses will be included in the income statement, and the statements will accurately reflect the disposal of scrapped assets.

It should be noted that the specific accounting treatment may be affected by the accounting standards and regulations of the country or region where the institution is located. It is recommended to follow the corresponding accounting standards and policies and consult financial professionals or certified public accountants to ensure accuracy and compliance. Solicit opinions on the evaluation problem.