Annual depreciation rate = (1 - estimated net salvage rate) ÷ estimated useful life (years) * 100%
Monthly depreciation rate = annual depreciation rate / 12
Monthly depreciation = original cost of the fixed assets * monthly depreciation rate
Short for "depreciation rate of fixed assets". It is calculated as the ratio of depreciation of fixed assets to the original value of fixed assets. It reflects the extent to which the value of fixed assets is apportioned to costs.
The depreciation of fixed assets should be calculated firstly by calculating the annual depreciation rate (see the entry), taking into account the original value of the fixed assets, the net salvage value, the useful life of the fixed assets and other factors, and then in the average of the monthly depreciation. Depreciation rates include individual depreciation rates, categorized depreciation rates, and composite depreciation rates (see related entries). Annual depreciation rate is the abbreviation of "annual depreciation rate of fixed assets". It is the ratio of the annual depreciation of fixed assets to their original value, and reflects the extent of the value of fixed assets transferred to product costs or related expenses during the year. Annual depreciation rate divided by 12 is the monthly depreciation rate.
Depending on the scope of depreciable assets, depreciation rates have individual depreciation rates, categorized depreciation rates and comprehensive depreciation rates.
Individual depreciation rates are used to calculate depreciation based on the depreciation rate of each fixed asset.
Classification of depreciation rate is in accordance with the categories of fixed assets to calculate depreciation rates and calculate the amount of depreciation, that is, each strict fixed assets in accordance with the same depreciation rate to calculate depreciation, such as China's industrial enterprise financial system will be divided into fixed assets of general-purpose equipment, special equipment and housing and buildings in three major categories of 22 subcategories,*** counting the stipulation of the 34 fixed assets of the use of the life of the equipment, which institutional equipment for the 10 to 14 years, and below that there are a variety of equipment such as car grinding planing and milling.
Classification of depreciation rates should be calculated in accordance with the weighted average method, if all fixed assets are straight-line method, should be weighted by the number of years, and in the case of accelerated depreciation method, should be the cost of depreciable fixed assets as the weights.
The comprehensive depreciation rate is based on the weighted average depreciation rate of all fixed assets of the enterprise.