How to accrue depreciation of fixed assets?

Take the provisions of the Income Tax Law as an example:

Article 59 The depreciation of fixed assets calculated according to the straight-line method shall be allowed to be deducted.

The enterprise shall calculate the depreciation from the month following the month in which the fixed assets are put into use; Depreciation of fixed assets that are no longer in use shall cease to be calculated from the month following the month in which they are discontinued.

Enterprises should reasonably determine the estimated net residual value of fixed assets according to the nature and use of fixed assets. Once the estimated net residual value of a fixed asset has been determined, it cannot be changed.

Article 60 Unless otherwise stipulated by the competent departments of finance and taxation, the minimum period for calculating depreciation of fixed assets is as follows:

1) 20 years for houses and buildings;

ii) 10 years for aircraft, trains, ships, machines, machinery and other production equipment;

3) 5 years for appliances, tools, furniture, etc. related to production and business activities;

4) 4 years for means of transport other than airplanes, trains, and ships;

e) electronic equipment, for 3 years.

Monthly depreciation amount = original price of fixed assets (1 - net residual value rate) service life 12

The depreciation of the company's fixed assets should be selected according to the specific situation of the company.

The methods of depreciation of fixed assets are usually as follows: Average life method. Also known as a straight line.

It is divided into the original value anti-distribution and the life-of-life method. Life-of-service method. This includes the production volume depreciation method and the working time depreciation method.

Accelerated depreciation method. It is divided into three types: the service life proportion method, the balance decline method and the double balance decline method. Year-round depreciation method.

Generally, the average age method is mostly used.

Legal analysis: Methods of depreciation of fixed assets: average method, workload method, double declining balance method and sum of years method, etc.

In addition, the enterprise shall reasonably choose the corresponding depreciation method of fixed assets within the scope of the foregoing according to the expected realization of the economic benefits related to fixed assets.

Legal basis: Accounting Standards for Business Enterprises No. 4 - Fixed Assets

Article 5 Where each component of a fixed asset has a different service life or provides economic benefits to the enterprise in different ways, and different depreciation rates or depreciation methods are applied, each component shall be recognized as a single fixed asset separately.

Article 17 An enterprise shall reasonably choose the method of depreciation of fixed assets according to the expected way of realizing the economic benefits related to fixed assets. Depreciation methods available include the averaging method, the workload method, the double declining balance method, and the sum of years method. Once the depreciation method of fixed assets is determined, it cannot be changed at will.

However, this does not apply to those that comply with the provisions of Article 19 of these Guidelines.

The original value of the asset is to be filled in the recorded value of the fixed asset, and the depreciation amount is entered into the credit column of the current amount in the depreciation column when the depreciation is accrued. Accumulation is the cumulative amount of accumulated depreciation. Net asset value is the recorded value of fixed assets minus accumulated depreciation.

Fixed assets and intangible assets, which are used to produce products, also have costs. Its value, which is its cost, needs to be included in the cost of the product. Amortization is required. This is the reason why depreciation should be made for fixed assets.

However, according to the accrual principle, the period of his cost amortization should not be just one year, but the period of his use. Therefore, it is necessary to reasonably estimate the cost to be amortized for each period, which is the amount of depreciation and amortization per year. If it is directly amortized in full at the time of purchase, the expenses are high in the current year and the profit is reduced, while the profit in the following years is overvalued.

This is not allowed by accounting.

One of the main characteristics of fixed assets is that they can play a role in several production cycles and maintain their original physical form, and their value is gradually transferred to the products produced with the wear and tear of the fixed assets, and the value of the fixed assets transferred to the products is the depreciation of fixed assets.

Calculation method of depreciation of fixed assets: enterprises generally use the average life method to calculate depreciation, which is based on the balance after subtracting the residual value from the original value of the fixed assets, and can also estimate the residual value according to the actual service life.

The formula is as follows: annual depreciation of fixed assets = original value of fixed assets - net residual value Estimated useful life of fixed assets, annual depreciation divided by 12 = monthly depreciation.

1. How long does the company acquisition process take.

The time required for the acquisition process is not necessarily long, which is not stipulated by the law, and is determined on a case-by-case basis.

The company's acquisition should focus on the company's non-performing assets, especially the depreciation of fixed assets, the amortization of intangible assets, and the assets that will be scrapped and cannot be scrapped.

2. What are the types of arbitrary provident fund withdrawal items?

Any CPF withdrawal items are:

1. Ordinary provident fund;

2. Balance the provident fund;

3. Insurance provident fund;

4. Debt repayment provident fund;

5. Production and development provident fund;

6. Depreciation provident fund, etc.

The ordinary provident fund is withdrawn from pure profits, with no specific purpose, only unexpected **; The balanced provident fund is to balance the company's profits and losses over the years, compensate for the company's losses or less profits**; The insurance provident fund is for the purpose of sharing the company's risk and compensating the company's risk loss; The Debt Sinking Provident Fund is withdrawn to pay off the company's debts**; The production development provident fund is used to supplement the company's current assets, increase fixed assets, and expand the scale of production and operation; The depreciation reserve fund is a reserve fund used to compensate for the consumption of fixed assets. Fixed asset updates are typically depreciated as assets.

3. Is the income from enterprise demolition compensation taxed?

Whether the compensation income of the enterprise is subject to tax depends on the situation, and the compensation fee for the land use right of the policy-based relocation is not subject to VAT. The tax payable on buildings including decoration and appurtenances shall be calculated at a rate of 5%. In other words, VAT is paid on the part of the compensation income that exceeds the original value obtained.

Regarding the compensation for the installation of the machine, if it cannot be relocated and is damaged after moving, it can only be dismantled and disposed of, and the VAT shall be calculated and paid according to the disposal of used fixed assets.

According to Article 14 of the Accounting Standards for Business Enterprises No. 4 Fixed Assets, an enterprise shall make depreciation for all fixed assets.

In the process of production and operation, the enterprise uses fixed assets and causes the loss of their value to reduce only a certain residual value, and the difference between the original value and the residual value is apportioned over its useful life, which is the depreciation of fixed assets. Determining the depreciation range of a fixed asset is a prerequisite for accruing depreciation. [1]

A monetary estimate of the value of the capital expended during the period examined. Also known as capital consumption allowance in the national income account. Depreciation of fixed assets refers to the systematic apportionment of the accrued depreciation amount according to the determined method during the useful life of the fixed assets.

Useful life refers to the expected life of a fixed asset, or the quantity of goods or services that the fixed asset can produce. Accrued depreciation refers to the amount of the original price of a fixed asset for which depreciation is accrued after deducting its estimated net residual value. For fixed assets for which provision for impairment has been made, the cumulative amount of provision for impairment of fixed assets shall also be deducted.

Depreciation of fixed assets shall be accrued on a monthly basis, and the depreciation accrued shall be recorded in the "accumulated depreciation" account, and included in the cost of the relevant assets or current profit or loss according to the use. Below, I will answer the relevant knowledge for you, I hope it will be helpful to you.

The depreciation of fixed assets used in the process of self-construction of fixed assets by enterprises shall be included in the cost of construction in progress; The depreciation of the fixed assets used in the basic production workshop shall be included in the manufacturing expenses; The depreciation of fixed assets used by the management department shall be included in the management expenses; The depreciation of the fixed assets used by the sales department shall be included in the sales expenses; The depreciation amount of the fixed assets leased out of operation shall be included in other business costs. When an enterprise accrues the depreciation of fixed assets, the accounts of "manufacturing expenses", "sales expenses" and "administrative expenses" are debited, and the "accumulated depreciation" account is credited.

Example 1] An enterprise uses the average method of life to depreciate fixed assets. In January 2007, according to the "depreciation calculation of fixed assets shows that the discussion is cracked", the depreciation amount that should be allocated to each workshop and the factory management department is: 1,500,000 yuan for the first workshop, 2,400,000 yuan for the second workshop, 3,000,000 yuan for the third workshop, and 600,000 yuan for the factory management department.

The enterprise should be accounted for as follows: borrow: manufacturing expenses - 1,500,000 in the first workshop - 2,400,000 in the second workshop - 3,000,000 in the third workshop and 600,000 in the management expenses

Accumulated depreciation 7,500,000

Example 2] The depreciation of fixed assets of Company B in June 2007 is as follows: the depreciation of the first workshop is 3,800,000 yuan, and the depreciation of machinery and equipment is 4,500,000 yuan; The depreciation of the building of the management department is 6,500,000 yuan, and the depreciation of the transportation workers and servants is 2,400,000 yuan; The depreciation of buildings in the sales department was 3,200,000 yuan, and the depreciation of transportation vehicles was 2,630,000 yuan. In the same month, a new purchase of machinery and equipment, the value of 5,400,000 yuan, the expected service life of 10 years, the enterprise similar equipment depreciation using the average method of life.

In this example, depreciation is not accrued for the month on newly acquired machinery and equipment. Among the depreciation expenses accrued this month, the depreciation expense of the fixed assets used in the workshop is included in the manufacturing expenses, the depreciation expenses of the fixed assets used by the management department are included in the management expenses, and the depreciation expenses of the fixed assets used by the sales department are included in the sales expenses. Company B should be accounted for as follows:

Borrow: manufacturing expenses - a workshop 8300000 management expenses 8900000 sales expenses 5830000 credit: accumulated depreciation 23030000