What is? Depreciation of fixed assets

Depreciation of fixed assets refers to the apportionment of fixed assets in the life of fixed assets according to the method of depreciation.

Service life refers to the time limit for fixed assets to be used. The life of some fixed assets can also be expressed by the quantity of products or services provided by the asset.

The amount of accrual depreciation refers to the balance after the original price of the fixed assets that is depreciated should be deducted from its estimated net salvage value. If the provision for impairment of the fixed assets has been made, the accumulated amount of the fixed assets impairment reserve that should be calculated should also be deducted.

　　 Depreciation of fixed assets Range

In addition to the following circumstances, the enterprise shall depreciate all fixed assets:

(1) fixed assets that have been used for depreciation;

(2) a separate valuation of land as a fixed asset.

In accounting practice, fixed assets in renewal and upgrading do not need to be depreciated, and the depreciation of fixed assets in major repairs is required.

　　 Depreciation of fixed assets Calculation Of Method

The enterprise should choose the depreciation method according to the expected realization way of the economic interest contained in the fixed assets. The methods of depreciation mainly include the average age method, the workload method, the double declining balance method and the annual sum method. Once the depreciation method is determined, it is not allowed to change at will. If necessary, it should be explained in the notes to the accounting statements.

In order to embody the principle of consistency, the depreciation method of fixed assets can not be modified in one year in the depreciation methods. When the mentioned months are not less than the estimated months of use, depreciation will no longer be made. Depreciation of fixed assets during the current period is not mentioned. Depreciation should be depreciated in the current period to conform to the principle of comparability.