Is there any provision for depreciation of the plant that is provisionally recorded in the accounts?

Provisional estimates are recorded. The plant, the assembly line can.

Provision for depreciation. When the fixed assets reach the intended usable state, all the expenses that have been incurred shall be collected, and the price reasonably expected to continue to be invested in the future shall be summed up to calculate the provisional value of the fixed assets that should be recognized, and the depreciation shall be recorded accordingly and depreciation shall be calculated in the following month. After receiving the invoice, the original provisional value can be adjusted, but the depreciation that has been accrued will not change, and only the total amount of depreciation that has not been mentioned will be amortized equally over the remaining useful life.

2.Although fixed assets can be provisionally recorded for depreciation in accounting, they are still available in the following accounts.

Final settlement. will still be increased to calculate income tax. Therefore, the general operation is to wait for the invoice to come before it is recorded.

The plant is included in the fixed assets, and the depreciation is generally calculated by the average life method, and the depreciation period is 20 years, and the land is generally included in the intangible assets, which is not depreciated and amortized according to the service life of the contract.

When purchasing and building a factory:

Borrow: Fixed assets.

Credit: construction in progress, bank deposits, etc.

Depreciation is accrued every month from the second month of entry:

Borrow; Manufacturing expense – Depreciation expense of fixed assets.

Credit: Accumulated depreciation.

When acquiring land:

Borrow: Intangible assets - land use rights.

Credit: Bank deposits.

Amortization: Borrow: Administrative Expenses - Amortization of Intangible Assets.

Credit: Accumulated amortization.

Legal analysis: Unused factories need to be depreciated. Cases in which depreciation is not accrued:

1. Fixed assets that have been fully depreciated and continue to be used; 2. In accordance with the provisions of the separate valuation of the land recorded as fixed assets, in the process of renovation and transformation, the fixed assets that are no longer in use shall be transferred to the book value of the construction in progress, and no depreciation shall be provided; 3. 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; 4. Reduce the depreciation of fixed assets in the current month, and do not accrue it from the next month.

Legal basis: Article 13 of the Provisions on the Liability for Repair, Replacement and Return of Some Commodities During the validity period of the three guarantees, if the conditions for replacement are met, if the seller requests to return the product because there is no product of the same model and specification, and the consumer is unwilling to exchange other models and specifications, the seller shall return the product; If there is a product of the same model and specification, and the consumer is unwilling to exchange it and requests to return it, the seller shall return the product and charge depreciation for the used goods in accordance with these provisions.

The depreciation expense is calculated from the date of issuance of the invoice to the date of return, which shall deduct the time occupied by the repair and the time to be repaired.

The factory building belongs to immovable property, and immovable property includes: real estate for production and operation, and real estate for non-production and operation. This obviously belongs to the use of production and operation: such as warehouses, factories, offices, canteens, etc., generally included in the "management expenses".

In accordance with the latest accounting standards for business enterprises, the administrative expenses are as follows:

Borrow: administrative expenses - depreciation - workshop.

Credit: Accumulated Depreciation - Plant.

The depreciation expense of fixed assets is calculated and determined according to the original value of the fixed assets and the prescribed depreciation rate, and the indirect costs and period expenses recorded in each period are apportioned according to certain standards.

The depreciation of buildings, machinery and equipment used in the production workshop shall be included in the manufacturing expense account as an indirect expense, and the administrative office building of the factory shall be included in the management expense account and shall be borne by the current income.

The total depreciation is credited to the Accumulated Depreciation account.

Fixed assets will be worn and consumed in the process of use, and their value will gradually decrease, and this reduction in value is the depreciation of fixed assets. When there is a decrease in the value of a fixed asset, the decrease in value should be calculated (i.e. depreciation) and recorded in the accounts. The decrease in the value of fixed assets also leads to an increase in expenses, so theoretically speaking, when accruing depreciation, depreciation expenses should be included according to the beneficiary objects of the fixed assets, and the principle of who benefits and who bears the burden should be adopted.

Depreciation is accrued in the month following the provisional valuation of the assets recorded in the accounts.

1. The fixed assets that have reached the intended usable state but have not completed the final accounts shall be recorded at the provisional value;

2. Depreciation shall be calculated according to the book value of fixed assets from the beginning of completion, and the depreciation that has been accrued shall not be adjusted;

3. When it comes to provisional valuation and accounting, depreciation is calculated from the next month when it reaches the intended usable state, and then the book value of fixed assets is adjusted from the current month when the final accounts are completed, and the depreciation amount is recalculated.

Note: Adjusted book value = total cost after completion settlement - accumulated depreciation accrued in the account since the valuation - estimated residual value.

Depreciation has been accrued in the provisional accounting, and it is found that the under-mentioned part should not be made up when it is officially recorded, but the under-mentioned part should be amortized in the remaining depreciation period. When fixed assets need to be depreciated separately by different depreciation methods, they must be accounted for separately, and you can amortize the depreciation according to the cost ratio at the time of formal accounting.

Legal analysis: depreciation should be accrued for idle factories. Provision for depreciation is a pre-accounting of certain depreciation expenses that have been incurred but not actually paid in the company's financial treatment.

When accruing depreciation, it is necessary to distinguish between the accounting period and the depreciation period, and the period referred to by the two nuclear banqueters is not necessarily the same. Accrual of depreciation is an asset account. Common methods for accruing depreciation of fixed assets include the average life method, the workload method, the double declining balance method, and the sum of years method.

Legal basis: Article 11 of the Enterprise Income Tax of the People's Republic of China 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 deduction:

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 separately valued; (7) Other fixed assets that are not subject to depreciation deduction.

If the original value is increased, depreciation can be accrued in the month of increase.

Specifically, it is divided into: 1. During the period of reconstruction and expansion, fixed assets shall be transferred to the project under construction, and depreciation shall be stopped. After the completion of the project, it will be transferred to the fixed assets, and the book balance of the fixed assets will be reconfirmed according to the reconstruction and expansion.

After deducting the estimated net residual value, it is used as the accrued depreciation amount, and is amortized over the estimated remaining useful life using the depreciation method prescribed by the enterprise.

2. If the estimated net residual value of fixed assets is zero, the original price of the discounted fixed assets is the accrued depreciation amount, which is amortized by the depreciation method specified by the enterprise.

Extended Information: Fixed Asset Depreciation Method.

Enterprises should choose the depreciation method according to the expected realization of the economic benefits contained in the fixed assets. The main depreciation methods available are the averaging of the life method.

Workload method, double declining balance method.

Sum of years method, etc. Once the depreciation method is determined, it cannot be changed at will. If there is a need for change, it should be explained in the notes to the accounting statements. The commonly used depreciation methods are described as follows:

1. Average life depreciation method 1.

Monthly depreciation rate. (1-Residual Value Rate) Estimated use month.

Monthly depreciation amount = monthly depreciation rate Original value = (original value - residual value) Estimated use month.

Residual value = original value Residual value rate.

It can be seen that the average life depreciation method is related to three parameters: the original value, the residual value (or residual value rate), and the expected use month. The amount of depreciation is related to the "accumulated depreciation."

The accrued month (when the accrued month is smaller than the expected month)" is irrelevant.

How to accrue depreciation for a new plant?

Newly built factories are fixed assets and should be depreciated.

Accrual of depreciation method:

Item 2 of Article 59 of the new Regulations for the Implementation of the Enterprise Income Tax Law stipulates that an enterprise shall calculate depreciation from the month following the month in which Xiaoliang's 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.

Article 58 stipulates that depreciation of self-constructed fixed assets shall be based on the expenses incurred before the completion of the settlement.