I. Fixed assets scrapped no fixed period of years. Only fixed assets due to participation in production or some special reasons, the loss of its value and the use of waste to be scrapped.
Second, there are two kinds of fixed assets scrapped:
One is due to wear and tear or obsolescence, destruction and other reasons, it can not continue to use;
The second is due to technological advances, replaced by advanced equipment.
Three, the fixed assets retirement age is not specified, the depreciation period is as follows: the Chinese people's *** and the implementation of the State Enterprise Income Tax Law Regulations, Article 60 In addition to the State Council, the competent departments of finance and taxation, except as otherwise provided.
Article 60 of the Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China
Except as otherwise provided by the competent financial and taxation authorities of the State Council, the minimum number of years for the calculation of depreciation of fixed assets shall be as follows:
(1) for houses and buildings, 20 years;
(2) for airplanes, trains, ships, machinery, machines and other production equipment, 10 years;
(3) for buildings, 20 years; and p>
(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.
Expanded:
There are two types of fixed asset obsolescence: one is due to wear and tear or obsolescence, the expiration of the useful life can not continue to be used; and the other is due to technological advances, must be replaced by advanced equipment.
Fixed assets scrapped, on the one hand, due to the fixed assets out of the enterprise caused by the reduction of fixed assets, on the other hand, in the process of cleaning up some clean-up costs will be incurred, but also may be made a certain amount of income from the change in value. Therefore, the accounting for fixed assets scrapped should be carried out in accordance with the following procedures:
(1) write off the original value of fixed assets scrapped and depreciated. According to the net value of fixed assets, debit "fixed assets clearance" account; according to the depreciation amount, debit "accumulated depreciation" account; according to the original value of fixed assets, credit "fixed assets" account.
(2) Carry forward the residual value and realization income. According to the recovery of the residual value and realization of income, debit "bank deposits", "raw materials" and other accounts, credit "fixed assets" account.
(3) Payment of liquidation costs. According to the cleaning costs incurred, debit "fixed assets cleaning" account, credit "bank deposits" and other accounts.
(4) carry forward the net gain or loss after liquidation. Fixed assets after liquidation of the net proceeds, debit "fixed assets cleanup" account, credit "non-operating income - fixed assets proceeds" account; fixed assets after liquidation of the net loss, debit "non-operating expenditures - Loss of fixed assets" account, credit "fixed assets cleaning" account.
Baidu Encyclopedia - Fixed Asset Retirement