Chapter 1 General Provisions Article 1 These Measures are formulated in accordance with the "Trial Regulations on the Depreciation of Fixed Assets of State-owned Enterprises" promulgated by the State Council on April 26, 1985 (hereinafter referred to as the "Trial Regulations"). Article 2 In order to strengthen the management of fixed assets, correctly calculate depreciation, rationally use depreciation funds, and promote the renewal and transformation of enterprise fixed assets, from January 1, 1989, all state-owned commerce, grain, and foreign trade enterprises that implement independent economic accounting , financial and insurance enterprises shall stop implementing comprehensive depreciation methods and instead implement classified depreciation according to the provisions of the "Trial Regulations" and establish and improve the management responsibility system for fixed assets and depreciation funds. Article 3 The depreciation of fixed assets shall be withdrawn and used in accordance with national regulations. Chapter 2 Scope of Depreciation Extraction The term "fixed assets" in Article 4 of the "Trial Regulations" refers to commercial, grain, and foreign trade enterprises with a unit value of more than 800 yuan, and financial and insurance enterprises with a unit value of more than 500 yuan, with a service life of one year. Houses, buildings, various types of equipment that are over 20 years old, and properties that do not meet the above standards but are managed as fixed assets by the financial department. Although it meets the fixed asset standards, it is excepted if it is not managed as fixed assets with special approval from the financial department. Article 5 The following fixed assets shall be depreciated:

1. Houses and buildings;

2. Various types of equipment in use;

3. Seasons Decommissioning and overhauling decommissioned equipment. Article 6 The following fixed assets shall not be depreciated:

1. Land;

2. Fixed assets that have been fully updated through partial overhauls, including enterprise roads, embankments, and revetments. , open-air floors, storage pools (tanks), docks, bank protections, slope protections, and other fixed assets that the Ministry of Finance has reviewed and approved to achieve overall renewal through rotational overhaul;

3. Unused and unnecessary equipment ;

4. For construction projects, fixed assets that have been previously trialled have not been formally delivered for use. Article 7 For equipment such as testing machines, experimental devices, microcomputers, etc. purchased by an enterprise for the purpose of developing new products, new technologies and realizing computerized accounting, if the purchase fees have been included in the cost (expense) in accordance with national regulations, Such fixed assets should be listed separately and regarded as fully depreciated fixed assets, with no depreciation taken. Article 8: For enterprises that have been suspended for more than one month, their equipment shall not be depreciated during the period of suspension. Unless otherwise specified by the state, the depreciation of various types of equipment of enterprises that are in a semi-closed state will be depreciated at half the rate. Article 9: For fixed assets rented by an enterprise through leasing, if the property rights belong to the lessee at the end of the lease period, the lessee shall accrue depreciation. The part of the lease fee that is included in the cost (expense) according to regulations shall be regarded as depreciation extracted.

If the property rights of fixed assets leased by an enterprise still belong to the lessor, the enterprise leasing the fixed assets shall accrue depreciation and compensate it in the leasing fee income. Article 10: For fixed assets that have been fully depreciated on their books, no further depreciation will be taken. However, if the performance of fixed assets that have reached the specified service life before 1989 is still good, they still need to be continued to be used, subject to the approval of the financial department at the same level (for central enterprises, the local central enterprise financial office, the same below), Depreciation can continue to be drawn based on the original value and prescribed standards before the end of 1993. From January 1, 1994, depreciation is no longer allowed. Article 11 Outdated equipment that must be replaced by advanced equipment due to social and technological progress, as well as equipment that should be eliminated according to national regulations due to high energy consumption, shall be scrapped in advance by the enterprise to the competent department and the financial department at the same level for review and approval. Sufficient depreciation can be made up.

For equipment that is indeed scrapped early due to product quality problems, the insufficient depreciation can be made up with the approval of the enterprise's competent department and the financial department at the same level.

For fixed assets that are scrapped early due to poor business management and other reasons, the depreciation that is not fully provided will no longer be made up. Chapter 3: Basis and Methods for Calculating and Extracting Depreciation Article 12: The basis for calculating depreciation is the original value of fixed assets.

For fixed assets purchased and constructed with capital construction appropriations or capital construction loans, the original value shall be the fixed asset value determined in the property schedule delivered for use by the construction unit.

For fixed assets purchased and constructed with special appropriations, special funds and special loans, the actual purchase and construction cost shall be the original value.

The original value of fixed assets transferred in for a fee and fixed assets leased in the form of financial lease shall be the actual transfer or purchase price, plus packaging fees, transportation and installation fees.

For fixed assets transferred in free of charge, the original value is the original book value of the transferred unit minus the original installation cost, plus the installation cost of the transferred unit.

For fixed assets that have increased in value after reconstruction or expansion, the new value after appreciation shall be the original value.

For fixed assets accepted as gifts or transferred back from overseas branches, the original value shall be determined based on current value valuation based on their technical performance and condition. Article 13 When an enterprise calculates and withdraws depreciation of fixed assets, it adopts the average life method (i.e., the straight-line method, the same below) and the workload method. Except as otherwise provided by the Ministry of Finance. Article 14 The depreciation of the following professional equipment shall be calculated and withdrawn according to the workload method:

1. The depreciation of passenger and freight vehicles shall be calculated and withdrawn based on the unit mileage depreciation amount and the actual driving mileage;

2. The depreciation of large-scale lifting and transportation equipment is calculated and extracted based on the depreciation amount of each shift and the actual work shift.

Passenger and freight vehicles and large-scale lifting and transportation equipment that do not meet the conditions for separate accounting can also be depreciated according to the average life method with the consent of the financial department at the same level.