The latest accounting standards do not stipulate the depreciation life, but the tax law stipulates the depreciation life of fixed assets. The Enterprise Income Tax Law stipulates:
(1) 20 years for houses and buildings
(2) 10 years for aircraft, trains, ships, machines, machinery and other production equipment
(3) Appliances, tools, furniture, etc. related to production and business activities, 5 years
(4) Transportation tools other than airplanes, trains, and ships, 4 years
(5) Electronic equipment, for 3 years.
As long as the depreciation period is not less than the above-mentioned depreciation period, it can be included in the cost of the enterprise, and the depreciation can be included in the deduction part when calculating income tax.
Residual value rate Accounting standards and tax laws do not stipulate residual value rate, and most companies expect the residual value rate to be positioned at 5.
The new accounting standards do not stipulate the value of fixed assets. The conditions for the recognition of fixed assets are:
(1) The useful life is more than 1 year (exclusive)
(2) ) Economic benefits can flow into the enterprise
(3) The asset can be measured reliably