How to calculate the expected net residual value

Expected net salvage value refers to the amount obtained from the disposal of fixed assets assuming that the expected useful life of the asset has expired and is in the expected state at the end of its useful life, less the expected disposal costs. In practice, the estimated net salvage value of fixed assets of a general enterprise is recognized as a percentage of the asset, for example, if the asset is 100,000 and the estimated salvage rate is 3%, then the estimated net salvage value = 100,000 * 3% = 3,000 yuan.

Net salvage value is the value of fixed assets after the expiration of the use of fixed assets, the residual value minus the fixed asset cleanup costs payable for that part of the value. Net salvage value of fixed assets belongs to the non-transferable value of fixed assets, should not be included in the cost, expenses, in the calculation of depreciation of fixed assets, to take the method of estimation, deducted from the original value of fixed assets, to the fixed assets scrapped direct recovery. The proportion of net salvage value of fixed assets to the original value of fixed assets is generally between 3% and 5%. The proportion of residual value within 5% of the original value is determined by the enterprise itself. According to the relevant provisions of the fixed assets residual value ratio is unified at 5%.

The residual value ratio of fixed assets of foreign enterprises is generally 10%.

According to the relevant provisions, the amortization limitations are as follows: unless otherwise specified, the minimum years for depreciation of fixed assets are as follows: the estimated useful life of houses and buildings is 20 years; the estimated useful life of trains, ships, machinery, machines and other production equipment is 10 years; the estimated useful life of tools, appliances, and furniture used for production and business operations is 5 years; the estimated useful life of means of transportation other than trains and ships is 4 years; the estimated useful life of tools, appliances, and furniture used for production and business operations is 5 years; the estimated useful life of means of transportation other than trains and ships is 4 years. The estimated service life is 4 years; the estimated service life of electronic equipment is 3 years.

Legal Basis

Article 31 Depreciation of Fixed Assets shall be dealt with in accordance with the following provisions:

(1) Depreciation shall be provided for the following fixed assets

1. houses and buildings;

2. machines in use; and p>2, in-use machinery and equipment, transportation vehicles, appliances and tools;

3, seasonal out-of-service and overhaul of out-of-service machinery and equipment;

4, fixed assets leased out under operating leases;

5, fixed assets leased under finance leases;

6, the Ministry of Finance stipulates that other fixed assets should be depreciated.