Equipment maintenance costs accounted for the proportion of total project costs are generally applied to determine the engineering quota; engineering quota refers to the normal working conditions, the completion of a qualified unit of product or completion of a certain amount of work required to consume manpower, materials, machinery and financial resources of the number of standards.
Fixed assets to extend the useful life, increase the value of fixed assets to a certain standard, the IRS regulations to extend more than two years, the value of more than 20% increase in the requirement of amortization, can not be a one-time entry into the value of fixed assets can be entered into the fixed assets;
If the equipment is required for the normal operation of maintenance and repair, such as elevators every month the maintenance fee occurs, you can be placed in current expenses;
If major repairs occur, such as once every three to five years, the benefit period will be reflected in the next three to five years, large equipment used for many years after overhaul, placed in the long-term amortization of expenses, to be apportioned over the future benefit period;
If the maintenance of the main components replaced, such as automobile engines, central air-conditioning compressors, etc., then the important components are recorded as fixed assets. Depreciation is provided over the lower of the remaining depreciable life of the equipment or the estimated useful life of the component.