We all know that fixed assets and intangible assets are used to produce products, and there are also costs. Its value, that is, its cost, needs to be included in the cost of products. It needs amortization, which requires depreciation. I. How to Depreciate Fixed Assets Fixed assets purchased in the current month will not be depreciated in the current month, and depreciation will be accrued in the next month after being recorded. Depreciation of fixed assets refers to the depreciation of fixed assets extracted according to the approved depreciation rate of fixed assets, or the depreciation of fixed assets virtually calculated according to the depreciation rate uniformly stipulated by national economic accounting. It reflects the transfer value of fixed assets in current production. The depreciation of fixed assets of various enterprises and enterprise-managed institutions refers to the depreciation expenses actually accrued and included in the cost; The depreciation of fixed assets of government institutions, non-enterprise management institutions and residential houses without depreciation is a virtual depreciation calculated according to the unified depreciation rate and the original value of fixed assets. There are many methods for enterprises to accrue depreciation of fixed assets, which can be basically divided into two categories, namely, straight-line method (including average life method and workload method) and accelerated depreciation method (including life sum method and double declining balance method). Enterprises should choose different methods according to the expected realization of economic benefits contained in fixed assets. The depreciation methods of enterprises are different, and the depreciation amount varies greatly. The enterprise shall accrue depreciation of fixed assets on a monthly basis, and the newly added fixed assets in that month shall be accrued from next month, and depreciation shall not be accrued in that month; Fixed assets reduced in the current month will still be depreciated in the current month, and depreciation will stop from next month. After full depreciation, depreciation will not be withdrawn regardless of whether it can continue to be used; Fixed assets scrapped in advance are no longer depreciated. Two. Description of depreciation of fixed assets 1. Pay attention to the scope of depreciation. According to the current accounting standards for business enterprises, enterprises should depreciate all fixed assets except the following circumstances: a. Fixed assets that have been fully depreciated and continue to be used; B. Land that is separately priced as fixed assets according to regulations; C. Fixed assets in the process of renewal. Unused machinery and equipment, instruments and meters, means of transport, tools and appliances, and seasonal shutdown will also be depreciated. 2. Pay attention to the provision of fixed assets, that is to say, consider the provision for impairment of fixed assets. 3. Pay attention to the determination of annual depreciation amount during depreciation period. Depreciation of fixed assets refers to the depreciation of fixed assets extracted according to the approved depreciation rate of fixed assets, or the depreciation of fixed assets virtually calculated according to the depreciation rate uniformly stipulated by national economic accounting. Fixed assets purchased in the current month will not be depreciated in the current month, and will begin to depreciate next month after being recorded. The above is the related content of how to calculate depreciation of fixed assets, hoping to help everyone.

Legal objectivity:

Accounting standards for enterprises No.4? Fixed assets Article 17 An enterprise shall reasonably choose the depreciation method of fixed assets according to the expected realization mode of economic benefits related to fixed assets. The depreciation methods available are life average method, workload method, double declining balance method and life sum method. Once the depreciation method of fixed assets is determined, it shall not be changed at will.