2. Functional depreciation is due to the development of science and technology, resulting in the depreciation of the assessed equipment compared with new equipment, the relative backwardness of the functionality of the depreciation caused by the use of new technologies, new materials, new processes resulting in the depreciation of the assessed equipment. Influencing factor: technology.
3. Economic depreciation, also known as external loss, refers to the loss of value caused by the external influence of the asset itself. Influencing factor: the market.
I. Physical depreciation
The physical depreciation of equipment is due to use and storage. Equipment in the process of use, due to the relative movement of parts and components with the surface of the friction generated by the relative movement, resulting in wear and tear of the body; equipment operation process of impact, vibration also makes the internal defects of the material continues to expand;
Additionally, the working environment of the acid, alkali substances, but also on the material of the equipment to produce erosion. This makes the use of equipment function gradually decline, the failure rate continues to rise, precision gradually reduced, maintenance costs continue to rise until the equipment completely lost the use of value.
Two, functional depreciation refers to the depreciation caused by the relative backwardness of technology.
Assessment (estimation) of functional depreciation, the assessor is mainly based on the utility of the asset, production and processing capacity, labor consumption, material consumption, energy consumption levels and other functional differences in the cost increase and benefit reduction, and accordingly determine the amount of functional depreciation of assets.
At the same time, the appraisers should also pay attention to the factors of technological progress, the impact of alternative equipment, alternative technologies and alternative products, as well as the status quo of the industry's technological equipment level and the speed of asset replacement.
Third, economic depreciation
Mainly manifested as a decline in the utilization rate of equipment in operation, or even idle, and the resulting reduction in the operating income of the equipment. The economic depreciation caused by external conditions can originate from international, domestic industry base or local. A variety of external factors affect the potential economic return and, therefore, directly impact the market value of an asset or property.
Determining the age of a piece of equipment for physical depreciation
The age approach estimates depreciation from a useful life perspective, assuming that the machinery and equipment has a certain useful life and that the rate of depreciation of the evaluated machinery and equipment is proportional to the number of years of its useful life, and that the relationship is linear. For example, if the normal useful life of a certain type of machinery and equipment is 20,000 hours, and if the equipment has been used for 5,000 hours, then its physical depreciation is about 25%.
Depreciation rate = years of use / years of durability
But in fact, the service life of machinery and equipment is affected by a number of factors, such as the utilization rate of the equipment, the maintenance of the equipment, the maintenance of the equipment, the level of the operating workers, the use of the environment, the workload and so on.
So the dispersion of the service life of the equipment is very large. For example, the equipment we mentioned earlier, it may have been used 20,000 hours, but can still operate normally, for this case, we can use the following formula to calculate the depreciation rate:
Depreciation rate = has been used years / (has been used years + still available years)