Shop decoration expenses can be included in long-term deferred expenses-decoration expenses, and can also be included in operating expenses (management expenses)-decoration expenses according to five-year apportionment, or can be used.

Share the service life. The replacement price depends on the increase of price and labor cost.

Enterprises use fixed assets in the process of production and operation, and its loss leads to a decrease in value, leaving only a certain residual value. The difference between the original value and the residual value is the depreciation of fixed assets. Determining the depreciation range of fixed assets is the premise of depreciation accrual. ?

National income account, also known as capital consumption compensation for depreciation of fixed assets, refers to the systematic distribution of depreciation amount within the service life of fixed assets. Service life refers to the expected life of fixed assets. Accrued depreciation refers to the amount after deducting the estimated net salvage value from the original price of fixed assets that should be depreciated. For fixed assets for which impairment provision has been made, the accumulated amount of impairment provision for fixed assets shall be deducted.

Extended data

Fixed assets and intangible assets are used to produce products and also have costs. Its value, that is, its cost, needs to be included in the cost of products. It needs to be repaid in installments. This is why fixed assets are depreciated.

Depreciation of fixed assets According to the accrual basis principle, the period of cost amortization should not be just one year, but its service life. Therefore, it is necessary to reasonably estimate the cost to be amortized in each period, that is, the annual depreciation and amortization. If it is amortized directly at the time of purchase, the expenses in the current year will be high, the profits will be reduced, and the profits in future years will be overestimated. This is not allowed by accountants. ?

One of the main characteristics of fixed assets is that they can play a role in several production cycles and keep their original physical form, and their value is gradually transferred to the products produced with the wear and tear of fixed assets. The value of fixed assets transferred to products is the depreciation of fixed assets.

Reference data: Baidu Encyclopedia-Depreciation of Fixed Assets