Accounting treatment of depreciation of fixed assets under financial leasing
1. On the start date of the lease term, the enterprise shall deduct the deductible value-added balance as the entry value of the leased assets according to the lower of the fair value of the leased assets (including value-added tax) and the present value of the minimum lease payment on the lease start date, plus the initial direct expenses that can be directly attributed to the leased project when the lease negotiation and signing the lease contract, and debit "fixed assets-financing lease" and credit "long-term payables" according to the minimum lease payment. According to the initial direct expenses, credit: "bank deposit" and other subjects; According to the difference, debit: "unconfirmed financing expenses" account.
2. When paying the lease fee in each installment, debit the "long-term payable" account and credit the "bank deposit" account. If the paid rent includes the performance cost, the subjects such as "manufacturing expenses" and "management expenses" will be debited according to the performance cost.
3. When allocating unconfirmed financing expenses by the effective interest rate method in each period, the amount of unconfirmed financing expenses that should be allocated in the current period should be debited to the "financial expenses" and credited to the "unconfirmed financing expenses" account.
4. Fixed assets leased by enterprises should be depreciated, and the depreciation policy should be consistent with its own fixed assets. Like self-owned fixed assets, depreciation methods generally include the average number of years method, workload method, double declining balance method, sum of years method and so on. Determining the depreciation period of fixed assets under financial lease should be based on the lease contract. If it can be reasonably determined that the enterprise will acquire the ownership of the asset at the expiration of the lease term, it can be considered that the enterprise has the full service life of the asset, so the depreciation period should be based on the service life of the asset. If it is not reasonable to determine whether the enterprise can obtain the ownership of the leased fixed assets after the lease expires, the depreciation period shall be determined according to the shorter of the lease period and the life of the leased assets. When depreciation is withdrawn, the "Manufacturing Expense" account is debited and the "Accumulated Depreciation" account is credited.
How to understand financial leasing of fixed assets?
Financial leasing of fixed assets refers to the fixed assets rented out by enterprises with the help of funds from leasing companies or other financial institutions because of insufficient funds, temporary difficulties in capital turnover, or in order to reduce investment risks. During the lease period, it shall be managed as its own fixed assets according to the principle that substance is more important than form.
When does the depreciation of fixed assets begin?
Depreciation of fixed assets refers to the systematic distribution of depreciation amount according to certain methods 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.
When purchasing fixed assets that do not need to be installed, depreciation is accrued from the month after the fixed assets are recorded. When purchasing fixed assets that need to be installed, depreciation shall be accrued from the next month after installation and use.