Inventory is a reporting item in the balance sheet. It is a big category, including many small items, including raw materials used by enterprises to produce products. The materials used in the project are called engineering materials, which are filled in the construction in progress when filling in the balance sheet.
Non-current assets refer to assets other than current assets, mainly including long-term equity investment, fixed assets, intangible assets, long-term deferred expenses, projects under construction, engineering materials, research and development expenditures, etc.
Engineering materials refer to building materials used to build fixed assets, such as steel, cement, glass, etc. Incorporate projects under construction into the balance sheet.
Enterprise accounting files set up the subject of engineering materials, accounting for the actual cost of various materials prepared by the enterprise for infrastructure projects, reconstruction projects and major repair projects, including the actual cost of materials prepared for the project, the actual cost of installing equipment that has not been delivered for installation, the actual cost of prepaying large-scale equipment according to the project budget during the capital construction period, and the actual cost of purchasing tools and instruments prepared for production. The purchase of equipment that does not need to be installed by enterprises should be accounted for in the "fixed assets" account, not in this account.
legal ground
Accounting standards for public institutions
Article 21
Non-current assets of public institutions include long-term investment, projects under construction, fixed assets and intangible assets.
Long-term investment refers to all kinds of equity and creditor's rights investments obtained and held by institutions for more than 1 year (excluding 1 year) according to law.
Construction in progress refers to all kinds of buildings (including new construction, reconstruction, expansion and repair, etc.). ) and equipment installation projects that have incurred necessary expenses but have not been completed and delivered.
Fixed assets refer to the assets held by public institutions whose service life exceeds 1 year (excluding 1 year), whose unit value is above the specified standard, and which basically maintain the original material form during use, including houses and structures, special equipment, general equipment, etc. Although the unit value does not meet the prescribed standards, a large number of similar materials with a durable time exceeding 1 year (excluding 1 year) should be accounted for as fixed assets.
Intangible assets refer to identifiable non-monetary assets held by institutions without physical form, including patents, trademarks, copyrights, land use rights and non-patented technologies.