What is the accelerated depreciation method and what is the formula for calculating the accelerated

It's the double declining balance method. It is a method that uses twice the depreciation rate of the straight-line method as a fixed depreciation rate and multiplies the net value of fixed assets at the beginning of the period, which decreases year by year, to obtain the depreciation amount that should be provided for each year.

The accelerated depreciation method is any depreciation method that amortizes the amount to be depreciated more quickly than the commonly used straight-line depreciation method based on the expected useful life.

The accelerated depreciation method is based on diminishing utility, that is, the utility of a fixed asset gradually decreases with the shortening of its useful life, so when the fixed asset is in a newer state, the utility is high, the output is also high, and the maintenance cost is lower, and the cash flow obtained is larger; When the fixed assets are in an older state, the utility is low, the output is small, and the maintenance cost is high, and the cash flow obtained is small, so that the depreciation cost should show a decreasing trend according to the requirements of the matching principle.

There are currently two methods of calculating depreciation under the accelerated depreciation method: the double declining balance method and the sum of years method.

The main methods of accelerated depreciation are:Double declining balance methodand the sum of years method.

Double declining balance method: annual depreciation rate = 2 depreciation period 100%, monthly depreciation rate = annual depreciation rate 12, monthly depreciation amount =Fixed assetsNet book value Monthly depreciation rate.

Sum of years method: The depreciation rate of each year is different for the sum of years method, and the depreciation rate for each year is expressed by the formula: annual depreciation rate = depreciation period - number of years used depreciation period (depreciation period + 1) 2, monthly depreciation rate = annual depreciation rate 12.

Depreciation of fixed assets shall be accrued on a monthly basis, and the depreciation accrued shall be depreciated through "accumulated depreciation."

Account accounting. Borrow: manufacturing expenses (depreciation accrued on the production floor) administrative expenses. Depreciation of unused fixed assets by the management department of the enterprise) sales expenses (depreciation of the special sales department of the enterprise).

Other operating costs (depreciation of fixed assets leased by the enterprise).

R&D expenditures (R&D assets of enterprises.

depreciation is used for fixed assets).

Construction in progress (depreciation of fixed assets is used in construction in progress), special reserves, reputation (fixed assets formed by extracted safety production expenses), and employee remuneration payable.

Non-monetary remuneration).

Credit: Accumulated depreciation.

Generally speaking, depreciation is required for fixed assets.

Accelerated depreciation method calculation formula

The main methods of accelerated depreciation are the double declining balance method and the sum of years method.

Double declining balance method: annual depreciation rate = 2 depreciation period 100%, monthly depreciation rate = annual depreciation rate 12, monthly depreciation amount = net book value of fixed assets monthly depreciation rate.

Sum of years method: The depreciation rate of each year is different for the sum of years method, and the depreciation rate for each year is expressed by the formula: annual depreciation rate = depreciation period - number of years used depreciation period (depreciation period + 1) 2, monthly depreciation rate = annual depreciation rate 12.

Depreciation of fixed assets shall be accrued on a monthly basis, and the depreciation accrued shall be accounted for through the "accumulated depreciation" account.

1) Sum of years method.

The sum of years method, also known as the total life method, refers to a method of calculating the annual depreciation amount by taking the original price of a fixed asset by subtracting the estimated net residual value by a fraction of the remaining useful life of the fixed asset at the beginning of each year as the numerator and the sum of the expected useful life of the year as the denominator. The formula for calculating the grinding key suspect is as follows.

Annual depreciation rate = Remaining useful life The sum of the number of years of the estimated useful life * 100%.

Sum of years of expected useful life = n*(n+1) 2.

Monthly depreciation rate = annual depreciation rate of 12.

Monthly depreciation amount = (original price of fixed assets - estimated net residual value) * monthly depreciation rate.

2) Double declining balance method.

The equipment is booked at x and is expected to be used for n (n is large enough) years, with a residual value of y.

then the depreciation in the first year c<1>=x*2 n.

Depreciation in the second year c<2>=(x-c<1>)*2 n.

Depreciation in the third year c<3>=(x-c<1>-c<2>)*2 n.

Nature of Accelerated Depreciation:

Accelerated depreciation refers to the fact that in order to encourage investment in specific industries or sectors, taxpayers are allowed to withdraw more depreciation at the initial stage of the use of fixed assets in order to recover the investment in advance.

Accelerated depreciation refers to depreciation that is provided for at the beginning of the useful life of a fixed asset. It is possible to get depreciation and tax deductions earlier in the useful life of fixed assets.

The accelerated depreciation method is based on diminishing utility, and the utility of a fixed asset gradually decreases as its useful life decreases. When the fixed assets are in a newer state, the utility is high, the output is also high, and the maintenance costs are lower, and the cash flow obtained is larger.

If the old method of accelerated depreciation is carried out, according to the financial accounting regulations of the country where we have missed the report, you can choose the double-stage clear times declining balance method or the sum of years method, and different depreciation methods may have different calculation formulas.

Accelerated depreciation, depending on what method you use? One is the double surplus distribution of the decreasing amount method, the other is the sum of years method of double decreasing balance, that is, divide two by the number of years, and then use the hail well, the original value of the asset um, multiply this ratio, in the last two years, the average of the constitutional district by year can be, if the total number of years is legal? Then the dust is applied to all the years, and after adding up, as the denominator of the um, then the numerator is the reciprocal of all the years, and the last number begins to go into the um, the original value of the asset.

Fixed assets can be depreciated at an accelerated rate: (1) Due to technological progress, the product is updated quickly; (2) Perennial in a state of strong vibration and high corrosion.

Article 32 of the Income Tax Law on Enterprise Repatriation provides that if the fixed assets of an enterprise really need to accelerate depreciation due to technological progress and other reasons, the depreciation period may be shortened or the method of accelerated depreciation may be adopted.

The accelerated depreciation method refers to the fact that more depreciation is withdrawn in the early stage of the use of the fixed assets and less in the later stage, so that the value of the fixed assets can be compensated as soon as possible during the service life.

This method of accruing depreciation is that the state first cedes profits to enterprises, accelerates investment, and enhances the ability to repay loans. Therefore, the accelerated spinal depreciation method is only allowed for certain companies with specific reasons.

The utility of fixed assets gradually decreases with the shortening of their useful life, so when the fixed assets are in a newer state, the utility is high, the output is also high, and the maintenance cost is lower, and the cash flow obtained is larger;

When the fixed assets are in an older state, the utility is low, the output is small, and the maintenance cost is high, and the cash flow obtained is small, so that the depreciation cost should show a decreasing trend according to the requirements of the matching principle.

Accelerated depreciation uses the double declining balance method and the sum of years method.

The double declining balance method refers to a method of accelerating depreciation by multiplying the opening net book value of fixed assets by a fixed percentage without considering the estimated residual value of fixed assets.

The sum of years method refers to a method of calculating the amount of accelerated depreciation by multiplying the net amount of the original value of fixed assets minus the estimated residual value by a decreasing fraction year by year.

How accelerated depreciation of fixed assets is calculated.

1. Double declining balance method.

Calculation formula: 1) Annual depreciation rate = 2 Estimated depreciation period 100%, annual depreciation amount = opening depreciation value of fixed assets Annual depreciation rate.

2) Monthly depreciation rate = annual depreciation rate 12;

3) Monthly depreciation amount = depreciation value of fixed assets at the beginning of the year Monthly depreciation rate;

4) Net book value of fixed assets at the beginning of the period = original value of fixed assets - accumulated depreciation;

5) Last two years: annual depreciation = (original value of fixed assets - accumulated depreciation - net residual value) 2;

2. Sum of years method.

Calculation formula: the numerator of the decreasing fraction represents the number of years that the fixed asset can still be used; The denominator represents the sum of the year-by-year numbers for the number of years of use, assuming that the number of years of use is n years, the denominator is 1+2+3+......n=n(n+1) 2, the relevant calculation formula is as follows:

Annual depreciation rate = the number of years that can still be used in the year 100% of the total number of years;

Annual depreciation amount = (original value of fixed assets - estimated residual value) Annual depreciation rate;

Monthly depreciation rate = annual depreciation rate of 12.

Monthly depreciation amount = (original value of fixed assets - estimated net residual value) monthly depreciation rate.

The accelerated depreciation method is a commonly used depreciation method in enterprise accounting, which is characterized by the use of a higher depreciation rate in the first few years of fixed assets, so that the net value of fixed assets is rapidly reduced. This approach can accelerate the depreciation of the company's fixed assets and reduce the company's tax burden, but it can also cause waste for the premature obsolescence of fixed assets.

The main methods of accelerated depreciation include the double declining balance method, the sum of years method, the workload method, and the product sales volume method. Among them, the double declining balance method is the most commonly used method, and its depreciation amount is calculated according to the following formula:

Annual Depreciation Amount = (Original Value of Fixed Assets - Accumulated Depreciation) Depreciation Rate where the depreciation rate is the percentage of depreciation of fixed assets for each asset class defined by the user. In the double declining balance method, the depreciation rate is fixed, but the depreciation amount will decrease year by year with the decrease in the value of the asset, and this method allows Yu Hong's high depreciation amount to occur in the first few years of the use of fixed assets, so as to achieve the purpose of accelerated depreciation.