Four calculation methods of depreciation of fixed assets

First, the straight-line depreciation method

1, life average method

Life-average method refers to a method of evenly allocating the accrued depreciation of fixed assets to the expected service life of fixed assets. The depreciation of each period calculated in this way is equal. The calculation formula is as follows:

Annual depreciation rate =( 1- estimated net salvage value rate)/estimated service life (year) * 100%

Monthly depreciation rate = annual depreciation rate/12

Monthly depreciation amount = original price of fixed assets * monthly depreciation rate

2. Workload method

The workload method is a method to calculate the depreciation amount of each period according to the actual workload. The calculation formula is as follows:

Depreciation amount per unit workload = original price of fixed assets *( 1- estimated net salvage value rate)/estimated total workload.

Monthly depreciation of fixed assets = monthly workload of fixed assets * depreciation of unit workload.

Second, the accelerated depreciation method

1, sum of years method

The sum of years method, also known as the sum of years method, refers to a method to calculate the annual depreciation by taking the service life of fixed assets at the beginning of each year as the numerator and the sum of expected service life as the denominator, and multiplying the net value of the original price of fixed assets minus the estimated net salvage value by a decreasing score. The calculation formula is as follows:

Annual depreciation rate = sum of acceptable service life/estimated service life * 100%.

Total years of expected service life =n*(n+ 1)/2

Monthly depreciation rate = annual depreciation rate/12

Monthly depreciation amount = (original price of fixed assets-estimated net salvage value) * monthly depreciation rate

2. Double declining balance method

Double declining balance method refers to a method to calculate the depreciation of fixed assets according to the balance after deducting accumulated depreciation from the original price of fixed assets at the beginning of the period and the double straight-line depreciation rate without considering the estimated net residual value of fixed assets. The calculation formula is as follows:

Annual depreciation rate =2/ estimated service life (year) * 100%

Monthly depreciation rate = annual depreciation rate/12

Monthly depreciation amount = net value of fixed assets * monthly depreciation rate

Because the estimated net salvage value is not deducted from the net value of fixed assets at the beginning of each year, it must be noted that when calculating depreciation by this method, the net value of fixed assets cannot be reduced below its estimated net salvage value, that is, the balance of fixed assets depreciated by double declining balance method is usually evenly shared within two years before the expiration of its depreciation period.

Extended data

influencing factor

1, depreciation base

Depreciation base is the original value or book value of fixed assets. According to the current accounting system, the original price of fixed assets is generally used as the basis for depreciation, but the enterprise that chooses the double declining balance method for depreciation is based on the net book value of fixed assets.

2. Depreciation life

The length of depreciation period is directly related to the depreciation rate, which is the key factor affecting the depreciation amount.

3. Depreciation method

An enterprise shall reasonably choose the depreciation method according to the expected realization mode of economic benefits related to fixed assets. The depreciation methods available in China's accounting standards include the life average method, the workload method, the double declining balance method and the life sum method. Once the depreciation method of fixed assets is determined, it shall not be changed at will.

4. Net salvage value

Net salvage value refers to the estimated recoverable salvage value of fixed assets after deducting cleaning expenses. An enterprise shall reasonably estimate the net salvage value of fixed assets according to the nature and use mode of fixed assets.

Baidu Encyclopedia-Depreciation of Fixed Assets

Baidu Encyclopedia-Depreciation Method of Fixed Assets