Whether depreciation can be accrued for the fixed assets of financial leases, etc

Need. When an enterprise leases fixed assets by way of financial leasing, the lessee essentially obtains the main economic benefits provided by the assets during the lease period, and at the same time bears the risks related to the assets. Therefore, the lessee should record the financial leased assets as a fixed asset, recognize the corresponding liabilities, and provide for the depreciation of the fixed assets.

Cai Shui [2005] No. 165 Article 6: Dealing with Inventory and Retained Tax Credit at the Time of Cancellation of General Taxpayers.

When a general taxpayer is cancelled or disqualified as a general taxpayer during the counseling period and becomes a small-scale taxpayer, its inventory will not be transferred out of the input tax, and the retained tax credit will not be refunded.

Therefore, the fixed assets of financial lease need to be depreciated; After the revocation of general taxpayers, their input VAT will not be refunded. Depreciation of new fixed assets in the current month will not be accrued in the current month, and depreciation will be accrued in the next month; The depreciation of fixed assets is reduced in the current month, and it will not be accrued from the next month.

Intangible assets are the exact opposite of fixed assets:

The intangible assets added in the current month are amortized in the current month; The intangible assets that are reduced in the current month are no longer amortized in the current month.

Depreciation method. Average years method.

Also known as the straight-line method, it is a way to evenly allocate the depreciation amount of fixed assets to various periods, and the depreciation amount is the same in each period.

Annual depreciation amount = (original value of fixed assets Estimated net residual value) Depreciation period (can also be the number of months).

For example, enterprise A has a factory building, the original value is 300,000 yuan, it is expected to be used for 10 years, and the net residual value is expected to be 5,000 yuan at the time of scrapping.

Annual depreciation: (300000-5000) 10=29500 yuan.

Workload method. A method of accruing depreciation based on actual workload. The depreciation amount per unit of work is calculated first, and then the monthly depreciation amount of a fixed asset is calculated based on the depreciation amount per unit of work multiplied by the total amount of work expected to be used.

For example, if enterprise B has a truck specially used for transporting goods, the original value is 30,000 yuan, and the total mileage is expected to be 300,000 kilometers, (assuming that there is no net residual value at the time of scrapping), and it travels 30,000 kilometers in the current month, and the monthly depreciation of the truck is required to be calculated.

Solution: Depreciation per unit of work = 30,000 300,000 = yuan km).

Monthly depreciation = 30,000 yuan.

One of the simplest methods most commonly used today is this method.

Depreciation is required for fixed assets leased under financial lease, while depreciation is not required for fixed assets leased under operating leases.

Fixed assets leased by "financing" shall be treated as self-owned assets for depreciation.

Depreciation cannot be provided for fixed assets leased from operation.

Operation" leased fixed assets.

Depreciation cannot be mentioned.

Fixed assets leased by "financing" shall be treated as self-owned assets for depreciation.

The depreciation is accrued by the lessor, and the lessee only pays the rent.

According to the current relevant provisions, financial leasing refers to the lessor's purchase of the leased Ming Lachun object selected by the lessee for the purpose of financing, and then leases the leased object to the lessee for medium and long-term use on the condition of collecting rent.

The basic characteristics of financial leasing are: the lessee selects the investment objects to be excitedly leased, and the lessor contributes capital to purchase; It is non-termintable, and the lessee has no right to terminate the contract in advance on the condition of withdrawing from the lease and deferring the return of the leased property; The absolute term of all financial lease transactions is more than one year.

More colloquial explanation:

Financial leasing is that you sign a contract with the other party, you lease the other party's fixed assets, according to the contract you pay the lease fee, and the ownership of the fixed assets belongs to you after the lease expires.

Article 11 of the Enterprise Income Tax Law of the People's Republic of China stipulates that when calculating the taxable income, the depreciation of fixed assets calculated by the enterprise in accordance with the provisions shall be allowed to be deducted.

The following fixed assets are not subject to depreciation deductions:

1) Fixed assets other than houses and buildings that have not been put into use;

2) Fixed assets leased in the form of operating leases;

3) Fixed assets leased out in the form of financial leases;

4) Fixed assets that have been fully depreciated and continue to be used;

5) Fixed assets unrelated to business activities;

6) Land recorded as fixed assets for separate valuation;

7) Other fixed assets that are not subject to depreciation deductions.

If the fixed assets leased from the operation do not belong to the assets of the enterprise, there is no need to mention depreciation, it belongs to the assets of the lessor, and the depreciation is calculated by the rental house; If the risks and rewards of the fixed assets leased out by finance have been transferred, the lessor does not need to provide for depreciation, but the lessee should provide for depreciation.

Fixed assets without depreciation:

1.Land; 2.Unused, unneeded and mothballed fixed assets other than houses and buildings;

3.fixed assets leased in the form of operating leases and fixed assets leased in the form of financial leases;

4.Fixed assets that have been fully depreciated and continue to be used;

5.Fixed assets for which maintenance fees are withdrawn in accordance with regulations;

6.Fixed assets that have been charged in a lump sum at cost;

7.fixed assets of bankrupt or closed down enterprises;

8.Other fixed assets that are not subject to depreciation as stipulated by the Ministry of Finance. Depreciation shall not be accrued for fixed property that has been scrapped in advance.

The basis for the first pass is as follows: China's standards stipulate that enterprises should depreciate all fixed assets except in the following circumstances:

Fixed assets that have been fully depreciated and continue to be used;

Land that is accounted for as a fixed asset is valued separately.

Fixed assets leased on an operating lease.

Fixed assets leased out on a financial lease.

Fixed assets that are in the process of being modernized.

Fixed assets held for sale.

According to accounting principles, substance is more important than form.

Financial leases are regarded as assets of the Company.

In fact, it is financing from the lessor.

Depreciation should be accrued on the basis of fixed assets.

An operating lease is not considered an asset of the business.

Therefore, it is not included in the balance sheet.

No mention of depreciation. The lessor depreciates.

Determine the fixed assets of the financial lease.

If it can be reasonably ascertained that the enterprise will acquire the ownership of the asset upon the expiration of the lease period, it can be considered that the enterprise has the entire useful life of the asset, so the service life of the asset should be used as the depreciation period, and if it is not reasonable to determine whether the enterprise can obtain the ownership of the leased fixed asset after the expiration of the lease period, the depreciation period shall be taken as the shorter of the lease term and the life of the leased asset. When depreciation is withdrawn, it is debited:""Manufacturing costs.

Account, credited:""Accumulated depreciation.

Account. The fair value of the leased assets will be leased on the date of commencement of the lease term on the date of commencement of the lease term.

including VAT) and the present value of the minimum lease payment, whichever is lower, plus the initial direct expenses incurred in the process of lease negotiation and the signing of the lease contract that are directly attributable to the lease project, such as handling fees, attorney's fees, travel expenses, stamp duty, etc., less the deductible value-added as the recorded value of the leased asset, debited:""Fixed assets - financial lease of fixed assets""Account. At the minimum lease payment, credited:""Long-term payables""Account. At the initial direct cost incurred, credited:

Bank deposits""and other accounts; By its difference, debited:""Financing charges are not recognized""Account.