Depreciation is not an accounting object

Accrual of depreciation does not belong to the accounting object, it is an accounting act, and the asset for which depreciation is accrued is the accounting object.

The accounting object refers to the content to be accounted for and supervised by the accounting work; Specifically, the accounting object refers to the capital movement shown by enterprises and institutions in their daily business activities or business activities, that is, the capital movement constitutes the content of accounting and accounting supervision.

The object of accounting is the economic activity that can be expressed in the form of money in the process of enterprise reproduction, that is, the movement of funds in the process of enterprise reproduction. To carry out production and operation activities, industrial enterprises must first use monetary funds to purchase production equipment and materials to prepare for the production process, and then put them into the production process of the enterprise to produce products, and finally to produce the products to the outside world and recover the monetary funds obtained due to the products. In this way, the funds of industrial enterprises have successively gone through the first process, production process and sales process, and their form has also changed.

When purchasing production equipment, materials and materials with money, monetary funds are converted into fixed funds and reserve funds; When the workshop produces products and receives materials and materials, the reserve funds are converted into production funds; After the finished product is inspected and entered into the finished product warehouse, at this time, the production funds are converted into monetary funds; When the finished product is recovered and the monetary funds are recovered, the finished product funds are converted into monetary funds. We start the capital from the form of money, then through the reserve funds, production funds, finished funds, and finally back to the monetary funds, this movement process is called the capital cycle, and the cycle of capital circulation is called capital turnover. In fact, the production and operation process of the enterprise is carried out repeatedly, uninterruptedly and cyclically, that is, the enterprise continues to invest raw materials, process products, and sell products, and its funds are also constantly circulating.

Hello, Accountant Zheng Diantong Online School This question:

It belongs to the matters in economic and operational matters.

Accounting Lao Zheng Yitong online school, specializing in accounting certificate training, 448 yuan tutoring package passed, the requirements here are strict, do other schools simply can't do, and don't want to do:

Measure to ensure 1: answer questions throughout the process. One-on-one, tutoring, voice Q&A, answer questions at any time, and eliminate problems in the bud.

Measures to ensure the second thing: full supervision. Discuss an executable study plan, require strict implementation, and require students to report their learning status and the accuracy of chapter practice every day.

Reporting method: where the plan goes, where it actually goes, whether it is fast or slow compared to the plan. The accuracy of the chapter needs to be reported in screenshots.

Measures to ensure that the curriculum is easy to understand. Broken up, crumpled, in-depth lectures, easy to understand teaching, because it is so easy to understand, the students call the teacher the accounting translator (accounting professional terms translated into a language that everyone can understand).

Measures to ensure four: three rounds of review and provide practice software. In the first round, we will comprehensively and accurately understand the basic knowledge, and provide practice software that can test the accuracy of understanding, with an accuracy rate of 80% and no big problems in passing the test; In the second round, we will do questions like crazy, provide the same exam software as the exam mode, and adapt to and be familiar with the exam environment; In the third round, check and fill in the gaps.

Review the mistakes of the first and second rounds and prepare for the exam.

Measures to ensure five: one step at a time, steady and steady, step by step. Read ** first, read the book again, and then do chapter exercises. It is required that the accuracy rate of each chapter practice is not up to 80%, and it is not allowed to study the next chapter, one step at a time.

As long as you make accounts, the assets that are included in the fixed assets account need to be depreciated, and if they are low-value consumables, they will be amortized.

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 payable is the amount of depreciation of fixed assets that needs to be accrued in the current period calculated according to a certain depreciation method.

Whether it should be mentioned: Except for the land use rights recorded in fixed assets, fixed assets that have been depreciated enough to continue to be used, and fixed assets that are no longer used and transferred to liquidation according to the new standards, depreciation shall be provided for the rest of the fixed assets.

The accounting accounts that may be involved in the provision of depreciation of fixed assets are: debit the accounts such as "manufacturing expenses", "administrative expenses", "sales expenses", "research and development expenses", "other business costs", and credit the "accumulated depreciation" account.

Depreciation entries for fixed assets:

1. Accounting treatment.

Article 17 of the new accounting standards for enterprises enterprises should reasonably choose the depreciation method of fixed assets according to the expected realization of economic benefits related to fixed assets, and the depreciation methods that can be selected include the average life method, the workload method, the double declining balance method and the sum of years method.

Second, tax treatment.

According to Article 32 of the Enterprise Income Tax Law, if the fixed assets of an enterprise really need to accelerate depreciation due to technological progress and other reasons, the depreciation period can be shortened or the method of accelerated depreciation can be adopted;

3. Accounting entries.

Borrow: Administrative Expenses - Depreciation Expenses.

Operating expenses – depreciation expenses.

Manufacturing expense—depreciation expense.

Credit: Accumulated depreciation – xx

Correct answers: a, b, c, d

Analysis: When an enterprise accrues the depreciation of fixed assets, it should debit the accounts of "manufacturing expenses", "management expenses", "sales expenses", "construction in progress", "other business costs", "R&D expenditures", and credit the "accumulated depreciation" account.

Hello landlord

Fixed assets and intangible assets are subject to depreciation.

For example, if the company buys a piece of equipment, the bank deposit pays 100,000 yuan.

And this equipment company can use it for five years, which means that it should be 20,000 yuan per year.

The fundamental reason is that China's accounting system is based on the accrual system, and the 100,000 yuan paid in the current period cannot be fully amortized in the current expenses, but according to a certain method, scientifically and evenly distributed in the subsequent benefit period.

The provision of depreciation is to make a depreciation expense of 20,000 yuan per year.

This is the reason for the provision of depreciation.

Provision for depreciation. It is the part of the value of fixed assets that is accrued according to a certain method in the process of use and transferred due to gradual attrition. There are workload method, straight-line method, sum of years method, etc., which are generally straight-line methods.

The account used is the "Accumulated Depreciation" account, which can be set up under the secondary account, which corresponds to the secondary account of the fixed asset.

Depreciation is provided for fixed assets and intangible assets. Amortize their value into costs on average each month.

Only fixed assets are subject to depreciation.

Accumulated depreciation is the allowance account for fixed assets, and fixed assets minus accumulated depreciation is the book value of fixed assets.

Since fixed assets are asset classes, natural accumulated depreciation is also asset classes.

The provision for depreciation of fixed assets reflects the principle of consistency in accounting.

In order to reflect the principle of consistency, the depreciation method of fixed assets cannot be modified in each depreciation method within one year, and depreciation will not be carried out when the month that has been mentioned is not less than the expected use month. The fixed assets increased in the current period are not depreciated, and the decrease in the current period is subject to depreciation to comply with the principle of comparability.

Enterprises should choose the depreciation method according to the expected realization of the economic benefits contained in the fixed assets. The depreciation methods that can be selected mainly include the average of the years method, the workload method, the double declining balance method, the 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 provision for depreciation of fixed assets means that under the condition that the enterprise adopts the accrual principle of accounting, in accordance with the requirements of the matching principle, the value of fixed assets needs to be allocated within the depreciation life of fixed assets according to a certain distribution method. In addition, the use of accelerated depreciation method for depreciation of fixed assets reflects the principle of prudence.

Accrued fixed assets:

1. Houses or buildings (whether in use or idle).

2. Machinery and equipment, instrumentation, means of transportation, tools and appliances in use.

3. Seasonal out-of-service and repair out-of-service equipment.

4. Fixed assets leased out in the form of operation.

5. Fixed assets leased in the form of lease.

Fixed assets that should not be depreciated:

1. Unused and unused fixed assets other than buildings.

2. Fixed assets leased in the form of operating leases.

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

4. Fixed assets that are scrapped in advance without sufficient depreciation.

5. Land (whether in use or idle) as fixed assets shall be valued separately according to the regulations

6. Fixed assets for which impairment provisions have been fully accrued.

The scope of depreciation.

Fixed assets for which depreciation is accrued.

1) Housing buildings;

2) Machinery and equipment, food instruments, transport vehicles, tools and appliances in use;

3) Seasonal out-of-service and repair out-of-service equipment;

4) Fixed assets leased out in the form of operating leases and fixed assets leased in the form of financial leases.

Fixed assets for which depreciation is not accrued.

1) Fixed assets that have been fully depreciated and continue to be applicable;

2) Land that has been valued separately in previous years.

3) Fixed assets that are scrapped in advance.

4) Special cases of fixed assets leased in the form of operating leases and fixed assets leased in the form of financial leases.

1. Fixed assets that have reached the intended state of use, if the final accounts have not yet been completed, shall be provisionally estimated and recorded according to the estimated value, and depreciation shall be accrued. After the completion of the final accounts, the original provisional value will be adjusted according to the actual cost, and the depreciation amount that has been accrued is not adjusted. Depreciation accrued in the current period is treated as costs and expenses in the current period.

2. Fixed assets that are out of use in the process of renovation shall be transferred to the book value of the project in progress and depreciation shall not be accrued. After the renovation project reaches the intended usable state and is converted into a fixed asset, depreciation shall be accrued according to the redetermined depreciation method and the remaining useful life of the fixed asset.

3. Fixed assets that are out of service due to major repairs shall be depreciated accordingly, and the amount of depreciation accrued shall be included in the cost of the relevant assets or the current profit or loss.

Depreciation of fixed assets begins in the month following the purchase of the fixed assets, and depreciation cannot be provided for production-related equipment that has been depreciated or put into use at the end of the year.

Depreciation of fixed assets.

It refers to the depreciation of fixed assets extracted according to the prescribed depreciation rate of fixed assets in a certain period of time to make up for the loss of fixed assets, or the depreciation of fixed assets calculated virtually according to the depreciation rate stipulated in the unified national accounts. It reflects the transfer value of fixed assets in current production. The depreciation of fixed assets of various enterprises and enterprises refers to the depreciation expenses actually accrued; The depreciation of fixed assets of ** organs, institutions under non-enterprise management and residential housing that does not provide for depreciation is a fictitious depreciation calculated according to the depreciation rate and the original value of fixed assets.

Because the fixed assets of the enterprise participate in the production and operation for a long time and still maintain their original physical form, but their value will gradually be transferred to the cost of the products produced with the use of fixed assets, which constitutes the expenses of the enterprise. Thus, with the transfer of the value of fixed assets, they are compensated in the form of depreciation in the revenue from product sales.

Depreciation is also an expense, but this expense does not pay real monetary funds during the accrual period, but this expense is the expenditure that has been incurred in advance, and the income of this expenditure is reflected in the effective use period of the asset after it is put into use, whether it is on the accrual basis or the cash basis, the provision of depreciation is necessary! Therefore, if depreciation is not accrued or depreciation is not accrued correctly, it will have an incorrect impact on the calculation of product costs or operating costs of the enterprise.

The depreciation of fixed assets refers to the part of the value of fixed assets that is gradually lost in the process of use and transferred to commodities or expenses, and it is also the cost of fixed assets that is apportioned by an enterprise during its service life due to the use of fixed assets in the process of production and operation.

First of all, clarify the conditions for the recognition of fixed assets

1) Held for the purpose of producing goods, providing labor services, leasing or business management;

b) The service life is more than one fiscal year.

Service life refers to the expected period during which an enterprise will use a fixed asset, or the quantity of products or services that the fixed asset can produce.

Article 4 Fixed assets can only be recognized if they meet the following conditions at the same time:

1) The economic benefits related to the fixed assets are likely to flow into the enterprise;

2) The cost of the fixed asset can be reliably measured.

Depreciation refers to the systematic apportionment of the accrued depreciation amount according to the determined method during the service life of the fixed assets.

The depreciation of fixed assets is because: in the process of use, fixed assets will gradually produce tangible wear and tear in physical objects and intangible wear and tear in time, and the value of the depreciation will be transferred to the manufacturing cost of the product by the method of depreciation on a monthly basis, and finally realized through the sale of the product. At the same time, it embodies the principle of proportioning.

The real meaning of depreciation of fixed assets is to offset the total profit by amortization of installment expenses, so that the investment cost of fixed assets can be gradually recovered through sales revenue, so that there are funds to replace fixed assets when fixed assets are scrapped.