1. Purchase fixed assets that don't need to be installed, and accrue depreciation from the month after the fixed assets are recorded;

2, the purchase of fixed assets need to be installed, from the installation and put into use next month to extract depreciation.

Depreciation methods include the following:

1. Straight-line depreciation method: This is the most commonly used depreciation method. Subtract the estimated residual value from the original value of the asset and divide it by the estimated service life to get the annual depreciation;

2. Accelerated depreciation method: this method has a high depreciation amount in the early stage and gradually decreases in the later stage. Common accelerated depreciation methods include double declining balance method and sum of years method;

3. Residual value percentage method: this method calculates the annual depreciation amount according to the original value and expected residual value of the asset and the percentage of the income or profit that the asset can generate each year.

Depreciation of fixed assets stops as follows:

1. Scrapping or loss of assets: When fixed assets can no longer be used due to aging, damage, loss or other reasons, depreciation will usually stop. Asset scrapping usually goes through approval procedures and is handled in accordance with relevant regulations;

2. Sale or transfer of assets: If an enterprise decides to sell or transfer fixed assets, it will generally stop depreciation when the assets are transferred. In the process of transfer, the book value of assets is usually calculated at the transfer price, and the net profit and loss of assets are calculated;

3. Scrapping or return of assets: When fixed assets are no longer owned by enterprises, but scrapped or returned to suppliers, lessors or other stakeholders, depreciation usually stops;

4. Assets reach the expected service life: According to accounting standards and company policies, the depreciation of fixed assets usually stops at the end of the expected service life. This means that the net asset value will be amortized to the expected residual value and will not be depreciated.

To sum up, the depreciation of fixed assets refers to the systematic allocation of depreciation amount according to a certain method within the service 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 also be deducted. The depreciation of fixed assets is included in the accumulated depreciation account. Depreciation of fixed assets usually begins when it is put into use or produced. The specific depreciation time depends on the nature and use of assets, as well as the provisions of laws and accounting standards.

Legal basis:

Article 59 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC).

Deduction of depreciation of fixed assets calculated by the straight-line method is allowed.

The enterprise shall calculate the depreciation from the next month when the fixed assets are put into use; Depreciation of fixed assets that have ceased to be used shall stop from the next month of the month of cessation of use.

An enterprise shall, according to the nature and use of fixed assets, reasonably determine the estimated net salvage value of fixed assets. Once the estimated net residual value of fixed assets is determined, it shall not be changed.

Article 60

Unless otherwise stipulated by the competent departments of finance and taxation of the State Council, the minimum depreciation period of fixed assets is as follows:

(a) houses and buildings, for 20 years;

(2) Aircraft, trains, ships, machines, machinery and other production equipment, 10 year;

(3) Appliances, tools and furniture. 5 years related to production and business activities;

(4) Four years for vehicles other than airplanes, trains and ships;

(five) electronic equipment, for 3 years.