What do you mean by idle assets?

Idle assets refer to assets that have stopped using for more than one year and are no longer needed, or have been replaced by newly purchased assets with similar purposes. Simply put, idle assets are assets that enterprises do not use in their daily operations (such as restricted equipment, land and houses), that is, assets that are temporarily unused but still listed as depreciation in the statements.

For the current production and operation of enterprises, idle assets are assets with low utilization rate, not necessarily "bad assets", but may be "high-quality assets" for another industry. Idle assets and bad assets are often mixed together.

Non-performing assets of enterprises refer to the net losses and potential losses (funds) that have not been dealt with by enterprises, as well as the estimated loss amount of various problem assets that should be provided for asset impairment according to the provisions of financial accounting system.

The management of idle assets and labor costs are high, which not only makes enterprises bear a heavy burden, but also causes a lot of waste of resources. For a large number of idle assets, enterprises should not only pay labor costs to manage them, but also repair and maintain the overall intact equipment every year.