How to depreciate fixed assets acquired during the start up period

According to the provisions of the Accounting Standards for Business Enterprises and the Accounting System for Business Enterprises:

1.The depreciation range of the fixed asset.

Depreciation shall be accrued to all fixed assets except in the following cases:

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

2) Land recorded as fixed assets shall be separately valued in accordance with the regulations.

2.Fixed asset depreciation method.

Enterprises should choose the depreciation method according to the expected realization of the economic benefits contained in the fixed assets, and the depreciation methods that can be selected include the average life method, the workload method, the double declining balance method or the sum of years method. Except as provided in the Accounting Standards for Business Enterprises, once the depreciation method has been selected, it shall not be adjusted at will. The various depreciation methods are calculated according to:

The formula for averaging the number of years.

Annual depreciation amount = (original value of fixed assets - estimated net residual value) Estimated useful life.

Monthly depreciation = annual depreciation 12

Workload method calculation formula (omitted).

Double declining balance calculation formula (omitted).

Formula for calculating the sum of years method (omitted).

Enterprises should reasonably determine the useful life and estimated net residual value of fixed assets according to the nature and use of fixed assets. Except as stipulated in the Accounting Standards for Business Enterprises, the useful life and estimated net residual value of fixed assets shall not be adjusted arbitrarily once selected.

3.Depreciation time of fixed assets.

Enterprises should generally withdraw depreciation on a monthly basis, and the fixed assets increased in the current month will not be depreciated in the current month, and depreciation will be accrued from the next month; The depreciation of fixed assets reduced in the current month shall be provided for in the current month, and the depreciation shall not be provided from the next month.

After the depreciation of fixed assets is fully depreciated, no depreciation will be withdrawn regardless of whether they can continue to be used; Depreciation will not be made for fixed assets that are scrapped in advance. The so-called full depreciation refers to the total amount of depreciation that should be provided for the fixed asset. The total amount of depreciation payable is the original value of the fixed asset less the estimated salvage value plus the estimated disposal costs.

4.Depreciation entries for fixed assets.

The depreciation of fixed assets shall be included in the cost of the relevant assets or current expenses respectively according to the use of the fixed assets.

Borrow: manufacturing expenses or administrative expenses, etc.

Credit: Accumulated depreciation.

New fixed assets are depreciated in the month following the purchase.

After the start of business, it is enough to make up the depreciation.

Hello, happy with your question.

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.

Accounting Standards for Business Enterprises No. 4 - Fixed Assets Provisions: The fixed assets added in the current month shall not be depreciated in the current month, and the depreciation shall be accrued from the next month... According to the measurement rules of fixed assets, the cost of fixed assets refers to the expenses incurred by the enterprise before the construction of fixed assets reaches the predetermined usable state.

In other words, depreciation of fixed assets starts from the second month in which they can be used, regardless of whether they are in preparation or not.

Therefore, as long as it is recognized as a fixed asset during the preparation period, it must be depreciated.

The depreciation of fixed assets purchased by an enterprise shall be accrued from the following month. If during the preparation period, "long-term amortized expenses - start-up expenses" are debited and "accumulated depreciation" is credited, and during the production and operation period, "manufacturing expenses" and "administrative expenses" accounts are debited and "accumulated depreciation" is credited.

Depreciation of fixed assets should be accrued from the next month after they are put into use, so whether depreciation is mentioned or not should be seen whether they have been put into use (excluding houses and buildings), and if they have been put into use, they will be included in the long-term amortized expense-depreciation expense.

1. If the fixed assets are not put into use after purchase, depreciation shall be accrued from the next month after purchase.

2. Article 14 of the Accounting Standards for Business Enterprises No. 4 - Fixed Assets stipulates that an enterprise shall provide depreciation for all fixed assets. Fixed assets shall be depreciated on a monthly basis, and the fixed assets increased in the current month shall not be depreciated in the current month, and depreciation shall be accrued from the next month after the mold is assigned; Depreciation is still accrued for fixed assets reduced in the current month, and no depreciation is accrued from the next month.

3. The fixed assets without depreciation are:

1) Fixed assets that have been fully depreciated and are still applicable to the continuation of the goods;

2) land that has been valued separately in previous years;

3) Fixed assets that are scrapped in advance;

4) Fixed assets leased out by finance.

Enterprises should generally accrue depreciation on a monthly basis, and the fixed assets increased in the current month shall not be depreciated in the current month, and depreciation shall be accrued from the next month; The depreciation of fixed assets reduced in the current month shall be provided for in the current month, and the depreciation shall not be provided from the next month.

Article 59 The depreciation of fixed assets calculated according to the straight-line method shall be allowed to be deducted.

The enterprise shall calculate the depreciation from the month following the month in which the 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.

Enterprises should reasonably determine the estimated net residual value of fixed assets according to the nature and use of fixed assets. Once the estimated net residual value of a fixed asset has been determined, it cannot be changed.

Hello, depreciation can be accrued from the next month of purchase.

According to the latest "Accounting Standards for Business Enterprises" on the provision of depreciation of fixed assets, the fixed assets increased in the current month will not be depreciated in the current month, and depreciation will be accrued from the next month, regardless of whether the fixed assets purchased or the fixed assets received for investment and donation;

The depreciation of fixed assets reduced in the current month is still accrued in the current month, and the depreciation will be stopped from the next month, regardless of whether the fixed assets are processed or exchanged;

Depreciation range. 1. Fixed assets for depreciation.

1) Housing buildings;

2) Machinery and equipment, instrumentation, transportation 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.

2. Fixed assets without depreciation.

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

2) land that has been valued separately in previous years;

3) Fixed assets that are scrapped in advance;

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

3. Special circumstances.

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 modernization and transformation shall be transferred to the book value of the construction in progress and no depreciation shall be provided. 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 relevant assets or current profit or loss.