The methods of depreciation of fixed assets are:
1, the average life method, also known as the straight-line method: a method of spreading the depreciation of fixed assets evenly over the periods. Using this method to calculate the amount of depreciation for each period are equal. Calculation formula:
Annual depreciation rate = (1 - estimated net salvage rate) / estimated useful life × 100%
Monthly depreciation rate = annual depreciation rate ÷ 12
Monthly depreciation = fixed assets original price × monthly depreciation rate
2, workload method: is based on the actual workload of the depreciation amount of a method. This method can make up for the average life method only heavy use of time, do not take into account the shortcomings of the intensity of use, the formula has:
Each workload depreciation = {fixed assets original price × (1 - salvage rate)}/expected total workload
A fixed asset monthly depreciation = the fixed asset workload of the month × each workload depreciation amount
3, accelerated depreciation method, also known as rapid depreciation or declining depreciation method, which is characterized by more depreciation in the first period of the effective life of the fixed assets, less depreciation in the later period of depreciation, thus relatively accelerated depreciation speed, in order to accelerate the cost of fixed assets to be compensated for the effective use of the life of the fixed assets.
There are two commonly used accelerated depreciation methods:
①Double Declining Balance Method: a method of calculating depreciation of fixed assets based on the net book value of fixed assets at the beginning of each period and the double straight-line method of depreciation, without taking into account the salvage value of fixed assets. Calculation formula:
Annual depreciation rate = 2 / expected depreciable life × 100%
Monthly depreciation rate = annual depreciation rate ÷ 12
Monthly depreciation = net book value of fixed assets × monthly depreciation rate
②Total number of years method is also known as the total number of years method: is the original value of the fixed assets less the net residual net amount and a decreasing fraction of the annual depreciation amount, this fraction of the annual depreciation amount, this fraction of the total number of years method, also known as the total number of years method: is the original value of fixed assets minus net salvage and a decreasing fraction of the annual depreciation amount, this fraction of the annual depreciation amount. Annual depreciation, the numerator of this fraction represents the number of years the fixed assets can still be used, the denominator represents the number of years of use of the sum of the yearly figures. Calculation formula:
Annual depreciation rate = the number of years of useful life / the total number of years of expected use of the sum of the depreciation
Monthly depreciation rate = annual depreciation rate ÷ 12
Monthly depreciation = (original value of the fixed asset - the estimated net salvage value) × monthly depreciation rate