The impact of the provision for impairment of fixed assets on the provision for accumulated deprecia

There will be an impact.

1. If a fixed asset has made an impairment provision, the depreciation rate and depreciation amount shall be recalculated according to the carrying amount of the fixed asset (the original price of the fixed asset minus the accumulated depreciation and the impairment provision provided) and the remaining useful life, i.e., (100-10-5) 9;

If the value of a fixed asset for which an impairment provision has been made is restored, the depreciation rate and amount shall be recalculated according to the carrying amount and remaining useful life of the fixed asset after recovery. However, when the depreciation amount of fixed assets is adjusted due to the provision for impairment of fixed assets, no adjustment will be made to the accumulated depreciation that has been accrued before.

2. When the impairment of fixed assets occurs and the provision for impairment is made, the enterprise shall re-examine the depreciation method, estimated useful life and estimated net residual value of the fixed assets, and adopt different treatment methods according to different circumstances

1) If the recoverable amount of a fixed asset is greater than its book value, the accounting system for business enterprises stipulates that the impairment provision that has been made in the previous period shall be reversed, but the amount reversed shall not exceed the original provision for impairment of fixed assets.

2) If the value of the fixed assets for which the impairment provision has been made is restored, the depreciation rate and depreciation amount shall be recalculated according to the book value of the fixed assets after the recovery and the remaining useful life.

3) When the depreciation amount of fixed assets is adjusted due to the provision for impairment of fixed assets, no adjustment shall be made to the accumulated depreciation that has been accrued before.

I agree with Budahuhu 90%, but I disagree with him that fixed assets cannot be reversed after the impairment provision is made, and can only be reversed when the fixed assets are disposed of again.

Yes, it will not be 100,000 in the future, the depreciation in 09 is 100,000, and the depreciation in 10 years is calculated as follows:

100-10-5) 9 = 10,000.

There should be no impact, but the provision for impairment of fixed assets should be reversed in subsequent years.

There are four main factors that affect the depreciation of fixed assets:

1) The original price of fixed assets. Refers to the cost of fixed assets. For fixed assets that have reached the intended state of use, but have not yet completed the final accounts, the cost shall be determined according to the estimated value, and depreciation shall be provided; After the completion of the final accounts, the original provisional value will be adjusted according to the actual cost, but the depreciation amount that has been accrued is not adjusted.

2) Estimated net residual value. It refers to the amount obtained by an enterprise from the disposal of a fixed asset after deducting the estimated disposal costs when the expected useful life of the fixed asset has expired and is at the end of its useful life. The question is generally given directly as a known condition.

3) Provision for impairment of fixed assets. It refers to the accumulated amount of provision for impairment of fixed assets.

4) The service life of fixed assets. It refers to the estimated period of use of fixed assets by an enterprise or the quantity of products or services that can be produced or services provided by such fixed assets. When determining the useful life of fixed assets, enterprises should consider the following factors:

the projected production capacity or physical production of the asset;

physical wear and tear of the asset, such as wear and tear in the use of equipment, natural erosion of buildings, etc.;

The intangible wear and tear of the asset, such as the technical level of the existing asset is relatively obsolete due to the emergence of new technologies, and the product is obsolete due to changes in market demand;

Restrictions on the use of the asset as provided for by law or similar.

Answer]: The difference and connection between the impairment provision for fixed assets and the accumulated depreciation:

Accumulated depreciation is the allowance account for fixed assets accrued in accordance with the regulations, and it is determined when the fixed assets are increased and a certain amount is calculated every year according to a certain accrual method. The provision for impairment of fixed assets is made when the following situations occur:

If the facts and evidence show that there is a reduction in the fixed assets, so that the balance of the original value of the fixed assets minus the accumulated depreciation is still greater than the present value or the amount receivable in the future, it is necessary to make an impairment provision for the difference.

2. The connection between the impairment provision for fixed assets and the accumulated depreciation:

Impairment and depreciation of fixed assets are an important part of fixed asset accounting, and from the content of the balance sheet, "depreciation" and "impairment provision" are both provision items of "fixed assets", which complement each other and jointly reflect the reduction of the book value of fixed assets. Whether it is the provision for impairment or the withdrawal of depreciation, it reflects the "prudent" principle of "correctly calculating losses and overpayments, reducing risk losses, and reasonably determining the degree of cost compensation" to varying degrees.

The accumulated depreciation after the provision for impairment of fixed assets is not the original, because the book value of fixed assets has been reduced after the provision for impairment of fixed assets, and the accumulated depreciation is the original value of fixed assets minus the accumulated depreciation that has been accrued, therefore, the accumulated depreciation is the book value of the remaining depreciation after deducting the impairment loss of fixed assets, so that in the process of accruing depreciation later, there is no need to deduct the depreciation accrued before. This reduces the amount of accounting effort and the chance of errors. Therefore, after the provision for impairment of fixed assets is made, the accumulated depreciation does not need to be reverted to the original value.

Summary. The provision for impairment of fixed assets will affect the carrying amount of fixed assets, including accumulated depreciation. Because the impairment provision is used to reduce the carrying amount of a fixed asset, the carrying amount of the fixed asset will be reduced accordingly after the impairment provision is made.

Accumulated depreciation refers to the depreciation that has been accrued in past use, so the impairment provision will not affect the amount of depreciation that has been accrued. However, since the impairment provision will reduce the carrying amount of the asset, it may cause the residual value rate of the asset to become higher and the depreciation amount to be lower, which may lead to a change in the subsequent depreciation amount.

The provision for the high value of fixed assets will affect the book value of fixed assets, including accumulated depreciation. Because the impairment provision is used to reduce the carrying amount of a fixed asset, the carrying amount of the fixed asset will be reduced accordingly after the impairment provision is made. Accumulated depreciation refers to the depreciation that has been accrued in past use, so the impairment provision will not affect the amount of depreciation that has been accrued.

However, since the impairment provision will reduce the carrying amount of the asset, it may lead to a higher residual value rate of the asset and a lower depreciation amount, which will lead to a change of several feet in the subsequent depreciation amount.

Can you tell us more about that?

The provision for the high value of fixed assets will affect the book value of fixed assets, including accumulated depreciation. Because the impairment provision is used to reduce the carrying amount of a fixed asset, the carrying amount of the fixed asset will be reduced accordingly after the impairment provision is made. Accumulated depreciation refers to the depreciation that has been accrued in past use, so the impairment provision will not affect the amount of depreciation that has been accrued.

However, since the impairment provision will reduce the carrying amount of the asset, it may lead to a higher residual value rate of the asset and a lower depreciation amount, which will lead to a change of several feet in the subsequent depreciation amount.

Summary. Reasons: 1. The depreciation of fixed assets is calculated in accordance with the depreciation method stipulated in the financial accounting standards, and the different depreciation methods will lead to different depreciation amounts; 2. The service life of fixed assets will also affect the depreciation amount, and if the service life changes, the depreciation amount will also change; 3. The depreciation amount of fixed assets may also be affected by the depreciation rate, and if the depreciation rate changes, the depreciation amount will also change.

Solution: 1. Determine the depreciation amount according to the depreciation method specified in the financial accounting standards; 2. Determine the amount of depreciation according to the service life of fixed assets; 3. Determine the depreciation amount according to the depreciation rate. Personal Tips:

1. Be familiar with the depreciation method stipulated in the financial accounting standards, so as to correctly accrue depreciation; 2. Be familiar with the service life of fixed assets, so as to correctly accrue depreciation; 3. Be familiar with the depreciation rate in order to correctly accrue depreciation.

Accumulated depreciation because the accumulated depreciation is calculated according to the service life of the fixed assets, and the service life of fixed assets may change, for example, because of technological progress, the service life of fixed assets may become shorter, at this time, it is necessary to recalculate the accumulated depreciation, and the accumulated depreciation will not be the original accumulated depreciation.

Excuse me, but please go into more detail?

Reasons: 1. The depreciation of fixed assets is calculated in accordance with the depreciation method stipulated in the financial accounting standards, and the different depreciation methods will lead to different depreciation amounts; 2. The service life of fixed assets will also affect the depreciation amount, and if the service life changes, the depreciation amount will also change; 3. The depreciation amount of fixed assets may also be affected by the depreciation rate, and if the depreciation rate changes, the depreciation amount will also change. Workaround:

1. Determine the depreciation amount according to the depreciation method specified in the financial accounting standards; 2. According to the service life of fixed assets, determine the amount of depreciation of section splitting; 3. Determine the depreciation amount according to the depreciation rate. Personal tips: 1. Be familiar with the depreciation method stipulated in the financial accounting standards, so as to correctly accrue depreciation; 2. Be familiar with the service life of fixed assets, so as to correctly accrue depreciation; 3. It is necessary to be familiar with the old rate of folding chain burning, so as to correctly accrue depreciation.