How does the lessee determine the policy for depreciation of leased equipment?

For assets leased under finance leases, when depreciating the leased assets, the lessee should adopt the same depreciation policy as that for its own depreciable assets. As with owned depreciable assets, the depreciation methods for leased assets generally include the average annual life method, workload method, double declining balance method, and the sum-of-the-years method. If the lessee or a third party related to the lessee has provided a guarantee for the residual value of the leased asset, the total amount of depreciation accrued is the recorded value of the fixed asset at the commencement date of the lease term, less the residual value of the guarantee. The total amount of depreciation accrued shall be the recorded value of the fixed asset at the commencement date of the lease term.　　The period over which depreciation of leased assets is to be determined shall be determined by the lease contract. If it is reasonably certain that the lessee will obtain the ownership of the leased asset at the end of the lease term, it can be considered that the lessee owns the full useful life of the asset, and therefore the life of the leased asset at the commencement date of the lease term should be used as the depreciation period; if it is not reasonably certain that the lessee will be able to obtain the ownership of the leased asset at the end of the lease term, the shorter of the lease term and the life of the leased asset should be used as the depreciation period. The lease period should be the shorter of the lease term and the life of the leased asset.