Depreciation of fixed assets is divided into two cases:
1, the purchase of fixed assets that do not need to be installed, from the fixed assets recorded in the next month to start depreciation.
2, the acquisition of fixed assets that need to be installed, from the installation is put into use the next month to start depreciation.
According to the new standard, depreciation of fixed assets to reach the intended use of the state of the next month to start. If a fixed asset has reached its intended state of use but has not yet been finalized, its cost should be determined according to its estimated value and depreciation should be provided. After the completion of the final accounts, then the actual cost to adjust the amount of depreciation.
Fixed assets fully depreciated, regardless of whether they can continue to use, are no longer depreciated; early retirement of fixed assets, no longer depreciated.
ExpandedFixed Assets Depreciation Note
1. Note the scope of depreciation, according to the current accounting standards, in addition to the following cases, the enterprise should be depreciated for all fixed assets:
a. Has been fully depreciated fixed assets continue to use;
b. In accordance with the provisions of the separate valuation of the land as a fixed asset accounted for;
c. Fixed assets in the process of upgrading.
2. Unused machinery and equipment, instruments, means of transportation, tools and appliances, and seasonal decommissioning are also subject to depreciation.
3. Note that the re-accrual of fixed assets this is to be considered in the provision for impairment of fixed assets.
4. Note that the depreciation period across the year when the annual depreciation amount is determined.
Baidu Encyclopedia - Depreciation of fixed assets