Fixed assets is to ensure that the production and operation of the enterprise can be a smooth and healthy development of the important material basis, which includes buildings, machinery and equipment, office furniture, transportation tools, etc., all belong to the category of fixed assets. Fixed assets in the use of the process, will gradually produce physical wear and intangible value of the reduction, and accounting in the production and operation of the accounting cycle, according to the original book value of the statistics, will affect the business managers to the expected economic benefits of the enterprise's judgment decision-making, there are deviations.
It is in this case, reasonable choice of depreciation method of fixed assets, the use of the calculation of amortization of installment costs, the value of the long-term use of fixed assets transferred to the annual cycle of the cost of production and operation activities of the enterprise, favorable to the enterprise to assess the economic benefits of the expected realization of the fixed asset value, making the Maximize the value of fixed assets, reduce the idleness and waste of assets.
There are four main ways to depreciate fixed assets:
1. Average annual depreciation
Annual depreciation = (original price - expected net salvage value)÷expected useful life
=original price × (1-expected net salvage value/original price)÷expected useful life
= original price × annual depreciation rate
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 projected useful life of 10 years, the projected net salvage value of 300,000 yuan, the amount of depreciation that should be accrued in 2020 by the average method of annual life is calculated as: (330 - 30 )/10/12x11=275,000 yuan.
2. Workload method
Depreciation per unit of work = original cost of fixed assets × (1 - expected net salvage rate) ÷ expected total workload
Monthly depreciation of a fixed asset = workload of the fixed asset in the month × depreciation per unit of workload
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 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 calculation of: 20 x (1-10%)/10/8000x2000 = 0.45 million yuan< strong>3. Double Declining Balance Method
Annual Depreciation = Net Fixed Assets at the beginning of the period x 2 / Estimated Useful Life
The last two years changed to the average annual life method
Net Fixed Assets = Fixed Assets Original Value - Accumulated Depreciation
Case Calculation: An enterprise builds a production line for use on its own, which was constructed at a cost of 300,000 yuan, with an estimated net salvage value of 0.8 million yuan and a useful life 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%
The first year of depreciation = 30x40% = 120,000 yuan
The second year of depreciation = (30-12) x 40% = 72,000 yuan
Third year of depreciation = (30-12) -7.2) x 40% = 72,000 yuan
Three years of depreciation = (30-12) -7.2) x 40% = 7.2) x 40%. 7.2)x40%=43,200 yuan
Depreciation for the fourth and fifth years=(30-12-7.2-4.32-0.8)/2=28,400 yuan
4. Sum-of-the-years method
Annual depreciation=(original cost - estimated net salvage value)xannual depreciation
Annual depreciation is determined by a decreasing fraction of the original cost. The depreciation rate is expressed as a declining fraction, where the number of years in each period is added together as the denominator of the declining fraction, and the number of years in each period is reversed as the numerator of the declining fraction for each year.
Case Calculation: A company purchased a piece of equipment on June 15, 2019, with a booked value of $3.7 million, an expected use of 5 years, and an expected net residual value of $100,000, the depreciated value of the equipment in 2019 under the sum-of-the-years method is calculated as (370-10)/(1+2+3+4+5)x5 /12x6=600,000 yuan
Note: The calculation is generally depreciated from the following month for fixed assets added in the current month.
The above is a simple introduction to the four ways of depreciation of fixed assets in the management of fixed assets in the enterprise and the calculation of the case, I hope to be able to help you! Although these formulas are very simple to understand, but in practice, the enterprise if the use of manual + Excel on the value of fixed assets statistics, in the face of the huge number of assets is very easy to make mistakes.
Therefore, enterprises with more mature informationization construction usually choose fixed asset management system. Asset cloud management can be based on the needs of enterprises in different industries, set up different fixed asset depreciation formula, efficient and accurate, convenient and quick, greatly improving the efficiency of enterprise fixed asset management.