Generally involves the salvage value are in the fixed asset cleanup that is, the disposal of fixed assets will be applied, ignoring the cleanup of the relevant costs and expenses:
Original value of fixed assets minus salvage value is equal to the amount of accrued depreciation should be.
Generally: net fixed assets = original value - accumulated depreciation
Residual value = original fixed assets - accumulated depreciation - cleanup costs - taxes payable
Residual value of fixed assets is an abbreviation of the residual value of fixed assets. It refers to the value of some residual materials recovered when fixed assets are scrapped and cleaned up. When calculating depreciation of fixed assets, the residual value of fixed assets is generally expected.
In accordance with the provisions of China's relevant accounting system, the net residual value of fixed assets (residual value minus the balance of liquidation costs) ratio, should be in the original value of 3% to 5% of the range, determined by the competent department of the enterprise, reported to the same level of finance for the record. Based on the original value of fixed assets minus the net residual value and the specified depreciation period, the average life method is used to calculate the annual depreciation amount and annual depreciation rate of fixed assets.
Extended Information:
Conventional depreciation calculation methods:
1. Average life method. A way of spreading the depreciation of a fixed asset over equal periods, with the same amount of depreciation charged in each period.
2, workload method. Calculate the amount of depreciation per unit of work, and then multiply the amount of depreciation per unit of work by the total amount of work expected to be used to calculate the monthly depreciation of a fixed asset.
3, the sum-of-the-years method. The original value of the fixed assets minus the residual value of the net amount multiplied by a declining fraction of the year to calculate the annual depreciation.
4, double-declining balance method. Calculate depreciation of fixed assets based on the net book value of fixed assets and double straight-line depreciation rate for each period.
References: