What does the depreciable life of a fixed asset mean? Is it the end of life?

The depreciable life of a fixed asset is the number of years the fixed asset can be used, it is really the expiration date, but not necessarily scrap, if the quality of the asset is still available, it can still be used, but in the financial treatment of depreciation is no longer necessary.

Fixed assets and intangible assets, is used to produce products, there is a cost. Its value, which is his cost, needs to be included in the cost of the product. It needs to be amortized. This is why fixed assets are depreciated.

Except as otherwise provided by the competent financial and taxation authorities of the State Council, the minimum number of years for the calculation of depreciation of fixed assets is as follows:

(a) houses, buildings, 20 years;

(b) airplanes, trains, ships, machines, machinery, and other production equipment, 10 years;

(c) and production and business activities apparatus, tools, furniture, etc. related to production and business activities, for 5 years;

(iv) means of transportation other than airplanes, trains and ships, for 4 years;

(v) electronic equipment, for 3 years.

Baidu Encyclopedia - Depreciation of Fixed Assets