Once the depreciation method is selected, it shall not be changed at will. If the enterprise regularly reviews the depreciation method and finds that the expected realization mode of fixed assets, including economic benefits, has undergone major changes.
Then the depreciation method of fixed assets should be changed accordingly, and this change should be reported to the relevant departments for the record and explained in the notes to the financial statements. I think the fixed assets of hotel and catering industry are mainly depreciated by the average life method.
Extended data:
the scope of the depreciation of fixed assets
Except in the following circumstances, an enterprise shall accrue depreciation for all fixed assets:
(1) Fixed assets that have been fully depreciated and continue to be used;
(2) Evaluate the land recorded as fixed assets separately according to the regulations.
The fixed assets of an enterprise shall be depreciated monthly. Fixed assets newly added in the current month shall not be depreciated in the current month, but shall be depreciated from next month; Fixed assets reduced in the current month will still be depreciated in the current month, and depreciation will stop from next month; Fixed assets scrapped in advance are not depreciated.
If the fixed assets newly built, rebuilt or expanded by an enterprise are in a serviceable condition, and the final accounts for completion have not been processed, they shall be accounted for according to the estimated value, and depreciation shall be accrued. After the final accounts are processed, the original estimated value is adjusted to the actual cost, and the original depreciation amount is adjusted.
The calculation formula is as follows:
Annual depreciation amount = [original value of fixed assets (estimated residual income-estimated cleaning expenses)] ÷ estimated service life.
= total depreciation of fixed assets ÷ estimated service life
Annual depreciation rate = annual depreciation amount ÷ original value of fixed assets × 100%
Annual depreciation rate =( 1- estimated net salvage value rate) ÷ estimated service life × 100%.
Monthly depreciation rate = annual depreciation rate12
Monthly depreciation amount = original value of fixed assets × monthly depreciation rate
There are three depreciation rates of fixed assets, namely, single depreciation rate, classified depreciation rate and comprehensive depreciation rate.
In practical work, most enterprises calculate the depreciation of fixed assets according to classified depreciation rates, and only some special assets (such as high value and long service life) are depreciated by individual depreciation rates.
Baidu Encyclopedia-Depreciation of Fixed Assets