When will a fixed asset for which depreciation has been accrued be scrapped

1. There is no necessary relationship between the scrapping of fixed assets and whether the depreciation is sufficient. Some fixed assets may be scrapped before depreciation is provided, while others can continue to be used even after depreciation has been provided. When a fixed asset meets the conditions for scrapping, it should be scrapped.

2. Fixed assets can be scrapped under the following circumstances:

1. Fixed assets that have no repair value due to physical wear and tear in long-term use, loss of function, complete loss of use value, or unusable fixed assets.

2. Invisible wear and tear due to technological improvements. The products produced by the fixed assets are backward in technology, poor in quality, high in energy consumption, low in efficiency, have been eliminated and are not suitable for continued use, or the technical indicators have not met the requirements for use. It must be replaced with new and more advanced fixed assets, 3. Seriously damaged, irreparable, or repairable, but the cumulative repair cost has approached or exceeded the market value.

1. The treatment of fixed assets that have been depreciated is as follows: if they continue to be used, they will not be treated as accounts; It can't be used. If it is to be scrapped, it shall be processed through the fixed assets liquidation account, and if there is a credit balance after the liquidation, it will be included in the non-operating income, and if there is a debit balance, it will be included in the non-operating expenditure, and there is no need to go through the tax filing.

2. Prepare the scrapping table of fixed assets, and after submitting it to the leader for approval, it will also be processed through the fixed assets disposal account, but finally transferred to non-operating expenses.

Legal analysis: depreciation is accrued in the month when the fixed assets are scrapped, and the fixed assets are liquidated in the current month. The enterprise shall accrue the depreciation of fixed assets on a monthly basis, and the depreciation of fixed assets increased in the current month shall not be depreciated in the current month, and the depreciation shall be accrued from the next month; The depreciation of fixed assets reduced in the current month will still be accrued in the current month, and the depreciation will cease to be accrued from the next month.

After the depreciation is fully applied, no depreciation will be withdrawn regardless of whether it can be continued to be used; Depreciation will not be made for fixed assets that are scrapped in advance.

Legal basis: Interim Measures for the Management of State-owned Assets of Public Institutions

Article 19 The annual lease and use of state-owned assets of public institutions includes the self-use of the unit and foreign investment, leasing, lending, guarantee, etc.

Article 21 Public institutions shall conduct necessary feasibility studies on the use of State-owned assets for foreign investment, leasing, lending and guarantees, and submit an application, which shall be submitted to the financial department at the same level for examination and approval after being reviewed and approved by the competent department. Where laws and administrative regulations provide otherwise, follow those provisions. Public institutions shall carry out special management of the assets used by the unit for foreign investment, leasing and lending, and fully disclose the relevant information in the unit's financial and accounting reports.

1. After scrapping, the original value of fixed assets and accumulated depreciation are reduced by 237,000 yuan at the same time, and the corresponding account is the liquidation of fixed assets.

The scrapped entries are:

Borrow: Disposal of fixed assets.

Borrow: Accumulated depreciation.

Credit: Fixed Assets (Original Value).

2. The tax law also allows provisional valuation to be recorded and depreciation to be provided, but invoices must be obtained within 12 months from the date of provisional valuation and accounting, and when the invoices are obtained, the tax basis and the original depreciation amount must be adjusted at the same time as an adjustment item in the final income tax settlement. In accounting, it is allowed to be recorded in the accounts for a provisional estimate, and after obtaining the invoice in the future, only the original value will be adjusted, and the depreciation amount that has been accrued will not be adjusted.

Specifically, in terms of accounting, regardless of the increase or decrease of the original value of the adjustment, it is only adjusted after the invoice is obtained, and the provisional value is not continuously adjusted. That is, when the provisional estimate is recorded according to the contract, if the provisional amount needs to be adjusted again, no adjustment will be made at this time, and it will be adjusted together when the invoice is officially obtained.

1. When scrapped and transferred out:

Borrow: Disposal of fixed assets, accumulated depreciation, and provision for impairment of fixed assets.

Credit: Fixed Assets.

2. When the clean-up costs are incurred:

Borrow: Disposal of fixed assets.

Credit: Bank deposits.

Tax Payable – VAT payable (output tax).

3. Income from disposal:

Credit: Disposal of fixed assets.

4. Handling of insurance compensation.

Debit: Other receivables, bank deposits, etc.

Credit: Disposal of fixed assets.

5. Carry forward the net profit and loss.

1) It is a net income.

Borrow: Disposal of fixed assets.

Credit: Non-operating income.

2) It is a net loss.

Borrow: Non-operating expenses.

Credit: Disposal of fixed assets.

Borrow: Disposal of fixed assets.

Borrow: Accumulated depreciation.

Credit: Fixed Assets.

Borrow: Disposal of fixed assets.

Credit: Expenses incurred in the disposal of assets, such as bank deposits.

Borrow: Gains and losses on disposal of assets.

Credit: Disposal of fixed assets.

The depreciation of fixed assets will be increased in the current month and increased in the next month, and reduced in the current month. The details are as follows:

1. The enterprise shall accrue the depreciation of fixed assets on a monthly basis, and the depreciation of the fixed assets increased in the current month shall not be accrued in the current month, and the depreciation shall be accrued from the next month;

2. The depreciation of the fixed assets reduced in the current month shall still be accrued in the current month, and the depreciation shall be stopped from the next month;

3. After the depreciation is fully raised, no depreciation will be withdrawn regardless of whether the Min Ji can continue to be used in Dana. Depreciation will not be made for fixed assets that are scrapped in advance. In the month when the fixed assets are scrapped, depreciation shall be accrued in the current month, and the fixed assets shall be liquidated in the current month.

The enterprise shall accrue the depreciation of fixed assets on a monthly basis, and the depreciation of fixed assets increased in the current month shall not be depreciated in the current month, and the depreciation shall be accrued from the next month; Depreciation of fixed assets reduced in the current month will be continued in the current month, and depreciation will be stopped from the next month. After the depreciation is fully applied, no depreciation will be withdrawn regardless of whether it can be continued to be used;

Depreciation will not be made for fixed assets that are scrapped in advance.

Legal basisArticle 13 of the Enterprise Income Tax of the People's Republic of China.

When calculating the taxable income, if the rollover expenses incurred by the enterprise are amortized as long-term amortized expenses and amortized in accordance with the regulations, they are allowed to be deducted

1) Expenses for the reconstruction of fixed assets for which depreciation has been fully withdrawn.

2) Expenses for the renovation of leased fixed assets;

3) Expenditure on major repairs of fixed assets;

4) Other expenses that should be treated as long-term amortized expenses.

If a fixed-only asset has not been depreciated and has now been scrapped, the accounting treatment is as follows:

Calculate accumulated depreciation: The first step is to calculate the accumulated depreciation of the fixed asset, which is the total depreciation expense from the time the asset was first purchased. The initial value and service life of the asset can be obtained by looking at the company's accounting records and fixed asset lists, and then the accumulated depreciation amount can be calculated according to the depreciation standard of fixed assets.

Disposal of retirement losses: Subtract the original value of the fixed asset from the calculated accumulated depreciation to obtain the net value of the asset, and then compare it with the actual amount recovered from retirement. If the actual amount recovered from retirement is less than the net value of the asset, then the retirement loss needs to be accrued and recorded in the profit and loss account; If the actual amount recovered from retirement is higher than the net value of the asset, the excess amount is credited to other income or profit.

Adjustment of financial statements: When adjusting the financial statements related to the fixed assets, the depreciation expense and retirement losses that have not been previously accrued should be corrected, and the assets should be removed from the list of fixed assets.

It should be noted that the depreciation of fixed assets is the basic principle in the financial accounting of enterprises, and if depreciation has not been accrued, it will lead to untrue and inaccurate financial data of enterprises, which will seriously affect the business decision-making and credibility of enterprises. Therefore, it is recommended that enterprises standardize the management and timely accrual of depreciation of fixed assets.

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In the process of production and operation, the enterprise uses fixed assets and causes them to lose their value, resulting in a reduction in value and only a certain residual value, and the difference between the original value and the residual value is apportioned over its service 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.

Yes, the depreciation of fixed assets reduced in the current month is accordingly.