How to accrue depreciation in industrial enterprises, and why should enterprises accrue depreciation

Depreciation shall be accrued according to the specified period, and if the fixed assets used for production are used through the manufacturing expenses, the management department shall use the management expenses.

The depreciation of industrial enterprises includes the depreciation of fixed assets, the depreciation of factories and buildings, the depreciation of land recorded as fixed assets at the valuation of the prescribed unit, and so on.

The scope is too large, and there are many classifications and methods. I don't know what you're asking.

In contemporary society, the development of enterprises does not rely on assets to win the world, because enterprises without assets are easily regarded as shell companies, that is, what we often call leather bag companies.

At this time, you will find that the importance of fixed assets to the enterprise, because when a customer or employee comes to a certain enterprise, if there is no venue, I am afraid that no one thinks that the enterprise will be powerful.

Of course, there are now a lot of asset-light enterprises, and there are fewer asset-heavy enterprises, does it mean that assets are not important? The answer is definitely no.

For enterprises, having core assets is the foundation of enterprise development.

First, let's understand the asset classification of enterprises and distinguish them according to liquidity.

Assets can be divided into: fixed assets, current assets, intangible assets, and long-term investments.

2. Let's talk about it today, why should depreciation be accrued for fixed assets?

1. Fixed assets are easy to be idle and eliminated.

Unlike other assets, it is tangible, immovable, and placed in a certain place for a long time, even if it is idle, it will be affected by the air, environment and other external influences. For example, the production equipment purchased by the enterprise will be damaged if it is exposed to the sun or in a cool and humid place.

2. During the use of fixed assets, it is easy to wear or consume.

Unlike intangible assets, you can't see or touch them. Fixed assets, generally in the process of being used, are slowly worn out and consumed. For example, the company's trucks will drive out every day, and it is inevitable that there will be traffic accidents, collisions, etc., which will cause significant wear and tear on the car.

3. Fixed assets have a specific service life.

Fixed assets, almost all have a specific service life, whether it is the enterprise's real estate, warehouse, transportation equipment, production equipment, are the established life. For example, real estate is basically scrapped in 70 years, and cars are basically scrapped in 20 years.

Unlike intangible assets, such as trademarks and brands, fixed assets have no lifespan and can be used as long as they do not go bankrupt. But fixed assets are different, they need to be used.

In the process of using fixed assets, it is equivalent to creating value for the enterprise, but it is not like labor costs, calculated on a monthly basis, because it is a one-time purchase, at this time, it is necessary to invest in the cost of the enterprise in the early stage, and convert it into the cost of the enterprise through depreciation.

4. The depreciation of fixed assets is conducive to the standardization of enterprise operation and management.

Fixed assets, for many enterprises, are conducive to cost management. After all, every enterprise will face the purchase of fixed assets and the disposal of fixed assets, and if there is no depreciation, many costs cannot be measured. For example, if you buy production equipment that the company does not need and sells it at this time, it is necessary to depreciate and calculate its entire value.

First, the basic concept of depreciation.

Depreciation refers to a financial treatment in which an enterprise amortizes the original value of fixed assets over time according to a certain depreciation rate when investing capital to purchase fixed assets. There are many ways to calculate depreciation, but the most commonly used are the average life method and the double declining balance method.

2. Calculation method of depreciation.

1.Average life method: that is, the service life of fixed assets is divided equally, and the annual depreciation amount is obtained by dividing the original value of fixed assets by the service life every year, and then depreciation is calculated according to the annual rubber bend depreciation amount.

2.Double declining balance method: that is, the original value of fixed assets is multiplied by a certain depreciation rate to obtain the annual depreciation amount, and then the depreciation is calculated according to the annual depreciation amount, and the annual depreciation amount is equal to the depreciation amount of the previous year multiplied by 2 times.

3. Tax treatment of depreciation.

The tax treatment of depreciation refers to the fact that when an enterprise accrues depreciation, it should calculate the depreciation amount in accordance with the depreciation rate and depreciation method prescribed by the tax department, and deduct the depreciation amount as an expense to reduce the tax burden of the enterprise.

4. Treatment of financial statements for depreciation.

The financial statement treatment of depreciation means that when an enterprise accrues depreciation, the depreciation amount should be included in the financial statements as an expense to accurately reflect the financial position of the enterprise.

5. Management control of depreciation.

The management control of depreciation means that when an enterprise accrues depreciation, it should establish a sound depreciation management system and check the depreciation regularly to ensure the accuracy and timeliness of depreciation.

6. Economic benefits of depreciation.

The economic benefit of depreciation refers to the fact that when an enterprise accrues depreciation, it can effectively improve the economic efficiency of the enterprise, reduce the tax burden of the enterprise, improve the financial status of the enterprise, and thus enhance the competitiveness of the enterprise.

To sum up, how to correctly accrue depreciation, enterprises must first understand the basic concept of depreciation, and then master the calculation method of depreciation, and deduct the depreciation amount as an expense in accordance with the depreciation rate and depreciation method stipulated by the tax department, so as to reduce the tax burden of the enterprise; At the same time, the depreciation amount should also be included in the financial statements as an expense to accurately reflect the financial position of the enterprise; It is necessary to establish a sound depreciation management system and regularly inspect depreciation to ensure the accuracy and timeliness of depreciation, effectively improve the economic efficiency of enterprises, reduce the tax burden of enterprises, and improve the financial status of enterprises, so as to enhance the competitiveness of enterprises.

An example of the depreciation calculation of the sum of years is as follows:There is a piece of equipment, the original value is 78,000 yuan, the estimated residual value is 2,000 yuan, it is expected to be used for 4 years, and the annual depreciation amount is calculated by the sum of the number of trial years.

Sum of years = 1 + 2 + 3 + 4 = 10.

Year 1 = (78000-2000) (4 10) = 30400.

Year 2 = (78000-2000) (3 10) = 22800.

Year 3 = (78000-2000) (2 10) = 15200.

Fourth year = (78000-2000) (1 10) = 7600. Yu Yu.

Annual depreciation rate = number of usable years 100% of the sum of years.

Annual depreciation amount = (original value of fixed assets Estimated residual value) Annual depreciation rate.

Monthly depreciation rate = annual depreciation rate 12.

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

The use of the sum of years method to accrue the depreciation of fixed assets reflects the principle of prudence in accounting.

The sum of years method, also known as the total number of years of life, is based on the net amount of the original value of the fixed assets minus the estimated net residual value, multiplied by a decreasing fraction to calculate the annual depreciation amount, the numerator of this fraction represents the number of years that the fixed assets can still be used, and the total number of years each represents the service life.

The calculation formula is as follows:

Annual depreciation rate Remaining useful life (divided by) the sum of the year-over-year figures for the pre-useful life.

Or. Annual depreciation rate (estimated useful life - useful life) (divided by) estimated useful life x (estimated useful life 1) 2

Annual depreciation amount (original value of fixed assets, estimated net residual value) x annual depreciation rate.

For example, a company has a production equipment with an original book value of 250,000 yuan, an estimated service life of 5 years, and an estimated net residual value of 4,000 yuan. Depreciation of fixed assets is calculated on the basis of the sum of years method. The annual depreciation amount is calculated as follows:

In the first year, the amount of depreciation (250,000-4,000) x5 15 = 82,000 yuan.

The depreciation amount accrued in the second year (250,000-4,000) x4 15 = 65,600 yuan.

The depreciation amount accrued in the third year (250000-4000) x3 15 = 49200 yuan.

The depreciation amount accrued in the fourth year (250000-4000) x2 15 = 32800 yuan.

The depreciation amount accrued in the fifth year (250000-4000) x1 15 = 16400 yuan.

Depreciation of fixed assets shall be accrued on a monthly basis, and the depreciation accrued shall be passed"Accumulated depreciation"Accounts are accounted for, and the cost of the relevant assets or the profit or loss for the current period are included according to the use.

1) The depreciation of the fixed assets used in the basic production workshop of the enterprise shall be included in the manufacturing expenses.

2) The depreciation of fixed assets used by the management department shall be included in the management expenses.

3) The depreciation of the fixed assets used by the sales department shall be included in the sales expenses. :

4) The depreciation of fixed assets used in the process of self-construction of fixed assets shall be included in the cost of construction in progress.

5) The depreciation of the fixed assets leased out of operation shall be included in the cost of other businesses.

6) For unused fixed assets, the depreciation accrued shall be included in the management expenses.

Entries: Debit: Manufacturing Expenses Administrative Expenses Selling Expenses Construction in Progress Costs Other Operating Costs Administrative Expenses.

Credit: Accumulated depreciation.

Do fixed assets and intangible assets of a business need to be amortized?

Fixed assets and intangible assets are used to produce products, and they also have costs. Its value, which is its cost, needs to be included in the cost of the product. Amortization is required. This is the reason why depreciation should be made for fixed assets.

However, according to the accrual principle, the period of his cost amortization should not be just one year, but the period of his use. Therefore, it is necessary to reasonably estimate the cost to be amortized for each period, which is the amount of depreciation and amortization per year. If it is directly amortized in full at the time of purchase, the expenses are high in the current year and the profit is reduced, while the profit in the following years is overvalued.

This is not allowed by accounting.

One of the main characteristics of fixed assets is that they can play a role in several production cycles and maintain their original physical form, and their value is gradually transferred to the products produced with the wear and tear of the fixed assets, and the value of the fixed assets transferred to the products is the depreciation of fixed assets.

How to calculate depreciation for fixed front assets for production? On the whole, in fact, according to the teacher's use of fixed assets for production and use in the above, the depreciation treatment can be accounted for through the accumulated depreciation account, and other accounting entries can be introduced in detail according to the above information; There are many related materials on this ** that can be learned for free, and you are welcome to pay attention to this **.