What Is Depreciation Accounting?
Depreciation accounting standards are the standards of conduct established by the International Accounting Standards Committee Circular No. 4 on accounting operations for asset depreciation.
Depreciation accounting standard
Right!
- Chinese name
- Depreciation accounting standard
- Establishment of institutions
- International Accounting Standards Board
- Establishment document
- Proclamation No. 4
- in accordance with
- Accounting for asset depreciation
- Depreciation accounting standards are the standards of conduct established by the International Accounting Standards Committee Circular No. 4 on accounting operations for asset depreciation.
- basic rules
- The International Accounting Standards Committee only summarizes some basic rules applicable to most depreciation methods. The main points are as follows: [1]
- (1) The financial statements shall explain the depreciation measurement method, the useful life and depreciation rate of the accrued depreciated assets, the total depreciation in the financial statements of the current period, the original total of the accrued depreciated assets and the accumulated total of depreciation;
- (2) The useful life of accrued depreciation assets should be based on the tangible losses (i.e. wear and tear that can be observed during use), intangible losses (i.e., natural staleness or obsolescence when not in use, and various restrictions on asset use) And other factors to estimate;
- (3) When significant amendments are made to the useful life of the relevant assets, they shall be timely expressed in the financial statements of the year and the reasons shall be explained.