The useful lives of the six major categories of fixed assets are as follows:
Land in perpetuity, houses and buildings generally 20 years, machinery and equipment generally 10 years, transportation generally 8 years, electronic equipment generally 5 years, and furniture and decorations generally 5 years.
Land Use in Perpetuity
Land, as a type of fixed asset, is considered to have a perpetual useful life. This means that land can be used for a long period of time without any time constraints. However, it is important to note that in cases stipulated by national laws and regulations, the ownership of land belongs to the state or the collective, and individuals or organizations can only obtain the right to use land.
Houses and Buildings
Houses and buildings, as fixed assets, are generally recognized as having a limited useful life. According to the relevant regulations, the useful life of houses and buildings is generally 20 years. This means that after 20 years, the relevant authorities will conduct an assessment and if the conditions permit, they can continue to be used, otherwise they need to be repaired, remodeled or demolished and rebuilt.
Machinery and equipment
Machinery and equipment, as a category of fixed assets, has a relatively short useful life. Typically, the useful life of machinery and equipment is set at 10 years. With the progress of science and technology and the renewal of technology, the life of machinery and equipment has been affected to a certain extent. Therefore, it needs to be evaluated and adjusted according to the specific situation during the actual use.
Transportation tools
Transportation tools, as a kind of fixed assets, have a relatively short service life. According to the regulations, the useful life of transportation tools is generally 8 years. This is mainly due to the fact that transportation tools are subject to bumps, wear and tear, and natural aging in the course of use, so their life expectancy is relatively short.
Electronic equipment
Electronic equipment, as an indispensable fixed asset in the modern society, its service life is also defined as a certain time limit. Typically, electronic equipment has a service life of 5 years. This is because with the advancement of technology, electronic equipment is updated very quickly, and the new generation of products can often provide better performance and functionality.
Furniture and Furnishings
Furniture and Furnishings, as a category of fixed assets, are similar to electronic equipment in terms of useful life. Typically, the useful life of furniture and decorative items is set at five years. This is due to the fact that furniture and décor may be subject to wear and tear, damage, or stylistic obsolescence over time, and therefore need to be replaced and modernized in a timely manner.