According to the provisions of the Accounting Standards for Business Enterprises (ASBE), an enterprise shall also depreciate unused and unneeded fixed assets, and the depreciation shall be charged to the current administrative expenses (excluding the fixed assets that are out of service due to renewal, renovation and overhaul); the depreciation of the fixed assets that are out of service due to renewal, renovation and overhaul shall be charged to the relevant costs according to the principle of benefiting from the assets.
According to Article 14 of ASBE No. 4 - Fixed Assets, enterprises should depreciate all fixed assets. However, fixed assets that have been fully depreciated but continue to be used and land that is separately accounted for are excluded.
According to the "Accounting Standard for Business Enterprises No. 4 - Fixed Assets" Application Guide:
I. Depreciation of Fixed Assets
(a) Fixed assets should be depreciated monthly, the increase in fixed assets in the month, no depreciation in that month, depreciation will be charged from the next month; the decrease in fixed assets in the month, still depreciated in that month. Fixed assets, the month is still depreciated, from the next month no depreciation.
Article 11 of the Enterprise Income Tax Law stipulates that when calculating taxable income, the depreciation of fixed assets calculated in accordance with the provisions of the enterprise is allowed to be deducted.
The following fixed assets shall not be calculated for depreciation deduction:
(1) fixed assets other than houses and buildings that have not been put into use;
According to the above provisions, enterprises shall depreciate all fixed assets. However, fixed assets that have been fully depreciated and still continue to be used and land that is separately valued and accounted for are excluded. Fixed assets increased in the month, not depreciated in the month, depreciation from the next month. Fixed assets other than houses and buildings that have not been put into use are not eligible for depreciation deduction.
Expanded:
Depreciation of fixed assets should be provided through the "Accumulated depreciation" account, according to the use of the relevant assets are charged to the cost or current profit and loss account.
1, the fixed assets used in the manufacturing plant, depreciation is charged to manufacturing expenses;
2, the fixed assets used in the management of the enterprise, depreciation is charged to administrative expenses;
3, the fixed assets used in the sales department of the enterprise, depreciation is charged to selling expenses;
4, the enterprise builds fixed assets on its own Fixed assets used in the process of construction, depreciation expense is included in the initial cost of construction in progress;
5. Fixed assets leased out by the enterprise for business purposes, depreciation expense is included in the cost of the enterprise - other operating costs;
6. Fixed assets not used by the enterprise, depreciation should be included in administrative expenses;
7. Fixed assets that are not needed are not subject to depreciation expense. The depreciation of fixed assets that are not in use shall be charged to administrative expenses.
8, financial leasing fixed assets, with reference to the above seven depreciation expense.
Borrow: administrative expenses/selling expenses/manufacturing costs/management costs/cost of construction in progress/other operating costs
Credit: Accumulated depreciation
The month should be carried forward to profit and loss and cost.
Shanghai Municipal Tax Bureau, State Administration of Taxation - Notice on the Issuance of Enterprise Accounting Standards - Application Guide