Scope and accounting method of depreciation of fixed assets under finance lease

1、three concepts：①Depreciation：refers to the useful life of fixed assets，Systematically allocate the accrued depreciation amount according to the determined method。②Accrued depreciation amount：Refers to the original price of a fixed asset that should be depreciated minus its estimated net residual value.。③Estimated net residual value：Refers to the expected state of a fixed asset assuming that its estimated useful life has expired and is at the end of its useful life.，The estimated deductions currently received by the enterprise from the disposal of the asset

cost

The amount after。

1. Fixed assets depreciation range：Except for the following circumstances，Enterprises should provide depreciation for all fixed assets：① Fixed assets that have been fully depreciated and are still in use;② Land that is separately valued and recorded as fixed assets according to regulations。

Fixed assets rented by finance lease，Fixed assets leased under operating lease：Accrued depreciation；Fixed assets leased by financial leasing，Fixed assets leased under operating lease：No provision for depreciation；Fixed assets increased during the month，No depreciation is mentioned for the month，Provision will be made from next month;Decrease in fixed assets during the month，Depreciation is still charged for the current month，No mention from next month。

After full depreciation of fixed assets，Regardless of whether it can continue to be used，No depreciation will be provided;Fixed assets that are scrapped in advance，No additional depreciation will be provided。Fixed assets that have reached the intended usable state but have not yet processed the final accounts for completion，The cost should be determined based on the estimated value，and provide depreciation;After the completion of the final accounts，Then adjust the original estimated value according to the actual cost，However, there is no need to adjust the originally accrued depreciation amount.。

1. There are 4 factors that affect the amount of depreciation of fixed assets：①Depreciation base;②Depreciation life of fixed assets;③Depreciation method;④Net residual value of fixed assets。
2. How to calculate depreciation of fixed assets：①average method;②Workload method;③Double declining balance method;④Sum of years’ digits method。Among them, the double declining balance method and the sum of the years' digits method are accelerated depreciation methods.。

①average method：official：Annual depreciation rate =(1-Estimated net salvage value rate)/Specified depreciation period × 100% monthly depreciation rate = annual depreciation rate ÷ 12-month depreciation amount = original value of fixed assets × monthly depreciation rate ② Workload method：official：Depreciation amount per unit of work ={Original value of fixed assets ×(1-Estimated net salvage value rate)}/Estimated monthly depreciation amount of total workload = current month’s workload × depreciation amount per unit of workload ③ Double declining balance method：official：Annual depreciation rate = 2/Estimated depreciation life × 100% monthly depreciation rate = Annual depreciation rate ÷ 12 months depreciation amount = Net book value of fixed assets × monthly depreciation rate ④ Sum of years’ digits method：official：The depreciation rate of each year = the remaining useful years of the fixed assets at the beginning of each year / the sum of the estimated service life of the fixed assets × 100% monthly depreciation rate = annual depreciation rate ÷ depreciation amount in December =(Original value of fixed assets - estimated net residual value)×Monthly depreciation rate 5、Enterprise determines the service life of fixed assets，The following factors should be considered：① Estimated production capacity or physical output;②Estimated tangible losses and intangible losses;③Restrictions on the use of assets by laws or similar regulations。

For details, please consult Shenzhen Hong Kong Xintong-。

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