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. According to the accrual principle, the amortization period of his cost should not be just one year, but his 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, while 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. First, the source of the concept of depreciation of fixed assets for enterprises, there is a simple formula, income-expenditure = profit, fixed assets are actually bought by enterprises, so they are also expenses, but often this kind of expenditure is very large and the benefit period is very long. If this expenditure is included in a certain month at one time, it will lead to obvious losses in that month, but in fact, the income brought by fixed assets in that month is not that much. Meanwhile, in other beneficial months, 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 of fixed assets impairment. 3. Pay attention to the determination of annual depreciation amount during depreciation period. Three. When fixed assets are depreciated, the depreciation amount of fixed assets is influenced by factors such as depreciation base, net salvage value, depreciation period and depreciation method. The Accounting Standards for Business Enterprises and the Enterprise Income Tax Law of People's Republic of China (PRC) and its implementing regulations (tax law) respectively stipulate the depreciation of fixed assets. Only by grasping the old factors of depreciation of fixed assets can we ensure that the depreciation amount is correct and will not affect tax payment. This paper compares the factors affecting the depreciation of fixed assets from two aspects: standards and tax law. A comprehensive understanding of the factors affecting the depreciation of fixed assets can ensure the correct depreciation, but enterprises will encounter some exceptions in actual production and operation. Now how to accrue depreciation is explained from the following situations. 4. "Accounting Standards for Depreciation of Fixed Assets" stipulates that the fixed assets that have reached the scheduled usable state but have not yet completed the final accounts shall be determined according to the estimated value and depreciated; After the final accounts of completion are processed, the original provisional valuation will be adjusted according to the actual cost, but there is no need to adjust the originally accrued depreciation. The Ministry of Finance's Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Enterprise Income Tax of Telecom Enterprises (Caishui [2004] No.215) stipulates that if a telecom enterprise adjusts the value of fixed assets due to the adjustment of the original provisional valuation or finds that the original valuation is wrong, it shall make up for the depreciation undercharged in previous years according to regulations and shall not deduct it in the supplementary year. The taxable income of the original year should be adjusted accordingly, and the corresponding tax payment can offset the income tax payable in future years. In other words, the tax law requires that after the value of fixed assets is determined, the original provisional valuation value should be adjusted according to the actual value, and the depreciation that was undercharged (overcharged) in the previous year should be supplemented (overcharged) according to regulations, and the taxable income of the original year should be adjusted accordingly. Depreciation is only a cost analysis. Depreciation is not a valuation of assets. It is neither a source of funds nor a purpose of funds. Therefore, the depreciation of fixed assets does not undertake the renewal of fixed assets. However, because the depreciation method will affect the income tax of enterprises, it will also have a certain impact on cash flow.
Legal objectivity:
Article 19 of the Interim Measures for the Administration of State-owned Assets of Public Institutions
The use of state-owned assets in public institutions includes self-use and foreign investment, leasing, lending and guarantee.
Article 20
Institutions should establish and improve the internal management system of asset purchase, acceptance, storage and use.
Institutions should regularly make an inventory of physical assets, so as to ensure that the accounts, account cards and accounts are consistent, and strengthen the management of intangible assets such as patent rights, trademark rights, copyrights, land use rights, non-patented technologies and goodwill of their own units to prevent the loss of intangible assets.