House decoration expenses can be included in the long-term deferred expenses-decoration expenses, and they are included in the operating expenses (management expenses)-decoration expenses according to the five-year allocation.
Or apportioned according to the service life. The replacement price depends on the increase of price and labor cost.
The formula for calculating the depreciation of fixed assets is as follows: annual depreciation amount = (original value of fixed assets-estimated residual value) ÷ estimated service life' annual depreciation rate = annual depreciation amount ÷ original value of fixed assets ÷ 100% monthly depreciation rate = annual depreciation rate ÷ 12.
Extended data:
Decoration expenses included in fixed assets need to meet one of the following conditions:
1, reaching more than 20% of the original price of fixed assets.
2. Extend the service life of fixed assets, which can reach 10 years in the future.
3. The uses and functions of fixed assets have changed and increased.
If one of the above three conditions is not met, it shall be included in the long-term prepaid expenses to be prepaid during the lease term.
If you are the lessee, you can handle it as follows. If the decoration cost is small, it can be included in the current cost at one time.
If the amount of expenses is large, it can be included in the expenses to be amortized, and then amortized by installments, but the amortization period can not exceed one year, or it can be equally shared during the lease term depending on the amount.
References:
Depreciation Baidu encyclopedia