Hospitals should depreciate fixed assets, except books, and spread the cost of fixed assets systematically over their estimated useful lives. In principle, hospitals should depreciate fixed assets according to the nature of the fixed assets, using the average annual method or workload method. Once the depreciation method is determined, it shall not be changed arbitrarily. If it is necessary to adopt other depreciation methods, it should be submitted for approval in accordance with the regulations and explained in the notes to the accounting statements. Hospital depreciation of fixed assets does not take into account the estimated net residual value.
Hospitals should generally be depreciated monthly, the month of the increase in fixed assets, no depreciation that month, depreciation from the next month; the month of the decrease in fixed assets, the month of depreciation, no depreciation from the next month.
Fixed assets fully depreciated, regardless of whether they can continue to use, are no longer depreciated; early retirement of fixed assets, and no additional depreciation.
When depreciation of fixed assets under finance leases is provided, the depreciation policy should be consistent with that of own fixed assets. Can be reasonably certain that the expiration of the lease term will obtain ownership of the leased fixed assets, should be depreciated over the useful life of the leased fixed assets; can not be reasonably certain that the expiration of the lease term can obtain ownership of the leased fixed assets, should be depreciated over the shorter of the lease term and the useful life of the leased fixed assets.
If a fixed asset's useful life is extended by incurring subsequent expenditures such as upgrading and reconstruction, the depreciation shall be recalculated in accordance with the cost of the fixed asset that has been re-determined after the upgrading and reconstruction as well as the re-determined depreciable life.
Hospital Financial System (Caixa [2010] No. 306) Article 47 Hospitals should, in principle, according to the nature of the fixed assets, within the estimated useful life, using the average life method or workload method of depreciation. Depreciation of fixed assets without regard to the residual value. Specific methods of depreciation by the provinces (autonomous regions and municipalities directly under the Central Government) competent departments in conjunction with the financial sector regulations or approval. Fixed assets increased in the month, no depreciation that month, depreciation from the next month; fixed assets decreased in the month, the month is still depreciated, no depreciation from the next month; has been fully depreciated still continue to use the fixed assets, no longer depreciated.
The main accounting treatment of accumulated depreciation is as follows:
(a) When depreciation of fixed assets is withdrawn on a monthly basis, according to the amount of financial subsidies, scientific and educational programs, the amount of money formed by the part, debit the "funds to be offset" account, according to the rest of the amount of depreciation to be withdrawn, debit the amount of "[medical operating costs] [medical cost]"[medical cost], debit the amount of money to be offset. Medical operation costs" [fixed assets for medical and auxiliary activities], "Administrative expenses" [fixed assets for administration and logistics management], "Other expenses" [fixed assets for operation and rental], etc., and according to the depreciation amount to be provided, debit the "Fund to be offset" account. Depreciation is credited according to the amount of depreciation that should be charged to the account.
Fixed assets such as buildings that have multiple uses and are used in a mixed manner shall be depreciated using a reasonable method of apportionment and credited to the relevant accounts.
(2) When fixed assets are disposed of or suffered a loss, according to the book value of the disposed of or suffered a loss of fixed assets minus the corresponding balance of the fund to be offset, debit the relevant account, according to the depreciation that has been drawn down, debit this account, according to the relevant balance of the fund to be offset, debit the account of the "fund to be offset". According to the book balance of fixed assets, credit the "fixed assets" account.