(a) houses and buildings;
(b) machinery and equipment in use, instruments and meters, transportation vehicles;
(c) seasonal out-of-service and overhaul of out-of-service equipment;
(d) the economic forestry of agricultural enterprises. Article 6 The following fixed assets shall not be depreciated:
(1) Land;
(2) Fixed assets that have been renewed as a whole through localized rounds of overhaul;
(3) Unused and unneeded equipment. Article 7 The fixed assets that have been fully depreciated in the accounts shall no longer be depreciated. However, before the promulgation of these Regulations has been fully depreciated fixed assets in use, if the technical performance of the equipment is still good, and no advanced equipment to replace, before 1990 still need to continue to use, can be depreciated. After 1990, depreciation will no longer be provided. Article 8 Workshops that have been continuously shut down for more than one month and enterprises that are basically in a state of shutdown are not entitled to depreciation of their equipment. The equipment of an enterprise in a state of semi-suspension with insufficient production tasks shall be depreciated by half, unless otherwise provided by the State. Article 9 Outdated equipment that must be replaced by advanced equipment due to social and technological progress, as well as equipment with high energy consumption that should be eliminated according to state regulations, shall be scrapped by the enterprise for review and approval by the competent department, and the depreciation not fully depreciated may be added back; fixed assets that are scrapped in advance due to mismanagement of the enterprise shall not be depreciated back to the extent of the depreciation not fully depreciated. Article 10 The mine shafts, shaft engineering and related surface and underground facilities of the extractive enterprises, and the railroads, highways and temporary facilities in the logging areas of the logging enterprises, shall all extract the renewal and reconstruction fund in accordance with the production volume and the accrual standard stipulated by the State. Chapter III Basis and Method of Calculating and Extracting Depreciation Article 11 The basis for calculating depreciation is the original value of fixed assets.
Fixed assets purchased and constructed with capital construction appropriations or capital construction loans, the value of fixed assets determined in the property schedules delivered for use by the construction unit as the original value.
Fixed assets purchased and constructed with special appropriations, special funds and special loans are valued at the actual cost of purchase and construction.
The fixed assets transferred with compensation, the transfer price or the price agreed between the two sides, plus packaging costs, transportation and installation costs for the value of the original value.
The fixed assets transferred in without compensation shall be valued at the original book value of the transferring unit minus the original installation cost, plus the value after the installation cost of the transferring unit. Article XII of the method of calculating and withdrawing depreciation, the average life method (i.e. straight-line method, the same below) and workload method. Article 13 The depreciation of the following professional equipment shall be calculated and extracted according to the workload method:
(1) Passenger and freight cars of transportation enterprises and professional fleets of other enterprises shall be calculated and extracted on the basis of the unit mileage depreciation amount and the actual mileage traveled;
(2) Large-sized equipment, shall be calculated and extracted on the basis of the hourly depreciation amount and the actual working hours;
(3) Large-sized (C) large construction machinery, calculated and withdrawn on the basis of the depreciation amount per shift and the actual work shift. Article 14 Except for those stipulated in Article 13, depreciation of fixed assets shall be calculated and extracted according to the average life method, i.e., according to the original value of the fixed assets, the stipulated depreciation life and the proportion of net salvage value, and shall be calculated and extracted on an equal annual basis. Article 15 Depreciation shall be extracted on a monthly basis and included in the cost of the month.
The production equipment of a seasonal production enterprise shall be depreciated for the whole year and fully depreciated during the production period and included in the cost of the production period. Chapter IV Depreciation Rate and Unit Depreciation Article 16 The depreciation of fixed assets is calculated and extracted in a categorized manner. The depreciation life of each type of fixed assets shall be determined according to the value of physical wear and tear and natural depletion of each type of fixed assets. For equipment and large-scale precision instruments with rapid technological development, etc., the factor of intangible depletion can be appropriately considered. The depreciable life of each type of fixed assets is shown in the attached table. Article 17 The depreciation rate and unit depreciation of fixed assets shall be determined as follows:
(1) The annual depreciation rate of the average life method shall be determined according to the original value of fixed assets minus the net salvage value and the depreciation life. The net salvage value of a fixed asset is the salvage value less the cost of liquidation.
(ii) The depreciation of workload (mileage, working hours and work shifts) of professional equipment is determined on the basis of the balance of the original value of the equipment less its net salvage value and the total workload (total mileage, total working hours and total work shifts) specified.