Original value of fixed assets including freight and installation costs incurred at the time of purchase are also depreciated with the purchase of equipment, because these costs are also regarded as part of the fixed assets.
Depreciation of fixed assets is the systematic apportionment of the amount of depreciation accrued over the useful life of a fixed asset in accordance with a defined method.
Life expectancy is the estimated life of a fixed asset, or the amount of product or labor that can be produced or provided by the fixed asset.
Accrued depreciation is the original cost of a depreciable fixed asset less its estimated net residual value. Fixed assets for which provision for impairment has been made should also be deducted from the cumulative amount of provision for impairment of fixed assets that has been made.
Expanded Information:
Fixed assets depreciation note
1, pay attention to the scope of depreciation, in accordance with the current accounting standards, in addition to the following cases, the enterprise should be depreciated for all fixed assets:
2, have been fully depreciated fixed assets continue to use;
3. Land that is separately valued as a fixed asset in accordance with the regulations;
4. Fixed assets that are in the process of renewal and reconstruction.
5, unused machinery and equipment, instruments and meters, means of transportation, tools and appliances, seasonal deactivation is also subject to depreciation.
6, pay attention to re-accrual of fixed assets which is to be considered for fixed asset impairment provision.
7, pay attention to the depreciation period across the year when the annual depreciation amount is determined.
Baidu Encyclopedia - Depreciation of Fixed Assets