Accrued depreciation is the company's financial treatment, pre-accrual of certain depreciation expenses that have been incurred, but not actually paid.
Accrued depreciation: is the original cost of fixed assets that should be depreciated, less their estimated net salvage 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.
Accrued depreciation = original value - net salvage value - provision for impairment.
Monthly depreciation rate=Annual depreciation rate/12, Monthly depreciation amount=Original value of fixed assets*Monthly depreciation rate.
I. Annual average method:
1. Formula:
Annual depreciation = (original cost - estimated net salvage value) ÷ estimated useful life.
=original price × (1-expected net salvage value/original price) ÷ expected useful life.
=Original price x annual depreciation rate.
2. Case Calculation:
At the end of January 2020, Company A temporarily purchased a set of medical equipment due to the pneumonia epidemic, the cost of the equipment is 3.3 million yuan, the estimated useful life of 10 years, the estimated net salvage value of 300,000 yuan, the amount of depreciation that should be charged in 2020 by the average annual life method is calculated as follows: (330-30)/10/12x11 = 275 million yuan.
Two, the workload method:
1, the formula:
Unit workload depreciation = fixed assets original price × (1 - expected net salvage rate) ÷ expected total workload.
Monthly depreciation of a fixed asset = workload of the month of the fixed asset × unit workload depreciation.
2, the case calculation:
Now the company has a car, the original value of the car is 200,000 yuan, the car is expected to be used for 10 years, the annual mileage of 8,000 kilometers, the net salvage value of the rate of 10%, the mileage of 2,000 kilometers in the month, the car's depreciation of the month according to the workload for the amount of: 20 x (1-10%) / 10/8000 x 2000 = 0.45 million dollars.
Three, double-declining balance method:
1, formula:
Annual depreciation = beginning of the period of net fixed assets × 2 / expected useful life.
The last two years are changed to the average annual life method.
Net fixed assets = original cost of fixed assets - accumulated depreciation.
2, case calculation:
A company builds a production line to put into use, the production line construction cost of 300,000 yuan, the estimated net salvage value of 0.8 million yuan, the use of 5 years. The production line according to the double-declining-balance method of depreciation in each year as follows:
Double-declining-balance method of depreciation = 2/5 = 40%.
Depreciation due in the first year = 30x40% = $120,000 dollars.
The second year's depreciation = (30-12) x 40% = $72,000 dollars.
The third year's depreciation = (30-12-7.2) x 40% = $43,200.
Depreciation due in the fourth and fifth years = (30-12-7.2-4.32-0.8)/2 = 28,400 yuan.