The time value of money needs to be considered in the accounting treatment of the abandonment cost of fixed assets, because the amount of abandonment cost is usually quite different from its present value. An enterprise shall include the present value of abandonment expenses in the cost of related fixed assets, and confirm the corresponding estimated liabilities in accordance with the provisions of Accounting Standards for Enterprises No.65438 +03- Contingencies. During the service life of the fixed assets, the interest expense calculated and determined according to the amortized cost of the estimated liabilities and the actual interest rate is included in the financial expense when it occurs.

Abandonment costs occur on specific fixed assets in special industries, such as nuclear power, mines, oil fields and other enterprises' fixed assets abandonment and environmental restoration obligations. The expenses for scrapping and cleaning the fixed assets of general industrial and commercial enterprises are not abandonment expenses, but should be treated as the disposal expenses of fixed assets when they occur.

Judging from the above accounting treatment and tax law, there is no substantial difference between accounting and tax law in the fixed assets abandonment expenses incurred by enterprises, and they can all be deducted before tax, but the confirmation forms are different. The tax law allows enterprises to allocate special funds before tax. There is no difference between tax law and accounting treatment if the enterprise withdraws special funds to pay for the scrapping of fixed assets according to law. If the enterprise does not calculate the abandonment cost by drawing reserves or special funds, the tax law needs to deduct the abandonment cost before tax when it actually occurs.