Fixed asset depreciation is the systematic apportionment of accrued depreciation over the useful life of a fixed asset in accordance with a defined method. The useful life of a fixed asset is the estimated life of the fixed asset, or the amount of product or labor that can be produced or provided by the fixed asset. Accrued depreciation is the original cost of a depreciable fixed asset less its estimated net residual value. Fixed assets for which provision for impairment has been made should also be deducted from the cumulative amount of provision for impairment of fixed assets that has been made.
The process of systematically and rationally allocating the cost of fixed assets over their useful life. In accordance with the matching principle, the cost of fixed assets is not only the cost incurred to obtain the current period of income, but also the cost incurred to obtain all subsequent income, i.e., the cost of fixed assets is the cost incurred to obtain the income in the effective period of use of the fixed assets, which is naturally proportional to the income.
What are the depreciable life regulations for equipment
1. The depreciable life regulations for equipment are as follows:
(1) 15 to 20 years for equipment of power supply system, 11 to 18 years for equipment of heating system;
(2) 10 to 20 years for central air-conditioning equipment, 8 to 10 years for communication equipment;
(3) 5 to 10 years for washing equipment, and maintenance equipment 10 years;
(4) kitchen utensils equipment 5 to 10 years;
(5) electronic computer system equipment 6 to 10 years, elevator 10 years;
(6) photo developing equipment 8 to 10 years, copying and typing equipment 3 to 8 years.
I hope the above can help you, if you have other questions please consult a professional lawyer.
Legal basis: "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China*** and the People's Republic of China"
Article 60 Unless otherwise provided by the competent departments of finance and taxation under the State Council, the minimum number of years for calculating depreciation of fixed assets shall be as follows:
(1) For houses and buildings, 20 years;
(2) For airplanes, trains, vessels, machines, machinery and other production equipment, for 10 years;
(iii) apparatus, tools, furniture, etc., related to production and business activities, for 5 years;
(iv) means of transportation other than airplanes, trains and ships, for 4 years;
(v) electronic equipment, for 3 years. Article 61 Enterprises engaged in the exploitation of mineral resources such as petroleum, natural gas and the like, the expenses incurred before the commencement of commercial production and the depreciation and depreciation methods of the relevant fixed assets shall be separately regulated by the competent authorities of the State Council in charge of finance and taxation. Article 63 The depreciation of productive biological assets calculated in accordance with the straight-line method shall be allowed to be deducted.
Enterprises shall calculate depreciation of productive biological assets from the month following the month in which they are put into use; productive biological assets that have ceased to be used shall cease to be depreciated from the month following the month in which they cease to be used.
Enterprises shall reasonably determine the estimated net residual value of productive biological assets based on the nature and use of productive biological assets. Once determined, the estimated net residual value of productive biological assets shall not be changed.