Fixed Assets of Hotel Business

means the assets with a useful life of more than 1 year such as land, building, construction, machinery, vehicles, etc., including addition, modification and improvement for useful life extension or increasing efficiency.

Fixed Assets are classified into:

• Land

• Building and construction

• Machinery and Equipment such as electric generators, tools used in a metal worker mine, construction tools, tools in industrial works such as cranes, hoists and others that are similar.

• Office equipment such as furniture and office furnishings, etc

• Vehicles such as cars, tractors and trolleys, etc.

• Software such as package software and bookkeeping programs, etc.

• Other fixed assets such as copyright and patent, etc.

Depreciation of Fixed Assets

means depreciated value of fixed assets according to usage duration in the accounting period.

Purchase Value of Fixed Assets consists of:

  • Purchase Value of New or Self-Produced Fixed Asset during the Year means the purchase value of a fixed asset that have never been used in the country before and is additionally purchased during January – December. Fixed assets that have just been imported in the country are regarded as new fixed assets either being passed for use or not. This includes all expenses used for the creation or production of fixed assets in order to be used in the establishment and used in big repairs that can enhance work efficiency or the extension of useful life of that fixed asset. Such expenses include labor cost and material cost, etc.

  • Sale Value of Used Fixed Asset during the Year means the actual purchase value of a fixed asset that has ever been used in the country before the establishment purchases in the period of January – December.

Sale Value of Used Fixed Asset during the Year

means the value based on the sale price of a fixed asset sold during January – December including the value of the fixed asset that is used and exchanged for a new asset by additional payment. It is deemed that the former price of the asset is the sale value of the used fixed asset and former price of the asset plus the additional amount of money paid to the purchase value of the fixed asset which is additionally purchased by the establishment

Changed Asset Value

means the expense value of the asset possessory right transfer between the owner of that asset and the other person.

Ownership Transfer Fee

It is calculated by: Purchase Value of Fixed Asset Plus Ownership Transfer Fee Minus Sale Value of Fixed Asset