Chapter I General Provisions Article 1 These Regulations are formulated for the purpose of strengthening the management of fixed assets of state-owned enterprises, improving the use efficiency, correctly extracting depreciation, rationally using depreciation funds, promoting equipment renewal and technological transformation, and improving economic benefits. Article 2 The depreciation of fixed assets of state-owned enterprises is compensation for the wear and tear of fixed assets. The compensation method is to extract the depreciation fund according to the original value of fixed assets and the specified depreciation rate, or to extract the renovation fund according to the output and the specified standard. Article 3 All state-owned enterprises that carry out independent economic accounting, including industrial enterprises, agricultural enterprises, transportation enterprises, construction enterprises, commercial, foreign trade and material supply and marketing enterprises, financial, investment and insurance enterprises, urban public utilities, cultural and educational enterprises and other state-owned enterprises, must correctly accrue and rationally use depreciation funds in accordance with the provisions of these Regulations, and establish a management responsibility system for fixed assets and depreciation funds. Article 4 Depreciation funds (including renovation funds) shall be used exclusively within the prescribed scope. Chapter II Scope of Depreciation Withdrawal Article 5 The following fixed assets shall be depreciated:

(1) Houses and buildings;

(2) Machinery and equipment, instruments and transport vehicles in use;

(3) Equipment stopped in season and overhauled;

(4) Economic trees of agricultural enterprises. Article 6 The following fixed assets shall not be depreciated:

(1) land;

(2) The fixed assets that are updated as a whole are overhauled by local turns;

(3) Unused and unnecessary equipment. Article 7 Fixed assets that have been fully depreciated shall not be depreciated. However, the in-use fixed assets that have been fully depreciated before the promulgation of this Ordinance can be fully depreciated if the technical performance of the equipment is still good and the advanced equipment has not been replaced for a while, and they still need to be used before 1990. /kloc-depreciation will not be withdrawn after 0/990. Article 8. No depreciation is drawn for the equipment of workshops and enterprises that have stopped production for more than one month. Unless otherwise stipulated by the state, the depreciation of equipment will be halved for enterprises with insufficient production tasks and in a semi-shutdown state. Article 9 Backward equipment that must be replaced by advanced equipment due to social and technological progress, as well as high-energy-consuming equipment that should be eliminated according to state regulations, shall be scrapped after being reported to the competent department for examination and approval by the enterprise, and the depreciation that is not fully accrued can be made up; Due to poor business management and other reasons, the depreciation of fixed assets scrapped in advance will not be replenished. Article 10 Mines, mine tunnels and related ground and underground facilities of mining enterprises, railways, highways and temporary facilities of logging enterprises shall be funded by the renovation fund according to the production and supply standards stipulated by the state. Chapter III Calculation Basis and Extraction Method of Depreciation Article 11 The calculation basis of depreciation is the original value of fixed assets.

Fixed assets purchased and built with capital construction funds or capital construction loans shall be based on the original value determined by the property list delivered by the construction unit.

Fixed assets purchased and built with special funds, special funds and special loans shall be based on the actual purchase and construction costs.

The original value of the fixed assets transferred with compensation is the transfer price or the price agreed by both parties, plus packaging fees, transportation fees and installation fees.

Fixed assets transferred in free of charge shall be based on the original book price of the transferring unit after deducting the original installation cost and adding the installation cost of the transferring unit. Article 12 The calculation and extraction methods of depreciation are the average life method (that is, the straight-line method, the same below) and the workload method. Thirteenth depreciation of the following professional equipment, according to the workload method:

(a) passenger and freight cars of professional fleets of transport enterprises and other enterprises shall be depreciated according to the unit mileage and actual mileage;

(two) large equipment, according to the amount of depreciation per hour and the actual working hours;

(three) large construction machinery, according to the depreciation of each shift and the actual workbench class calculation and extraction. Article 14 Except as stipulated in Article 13, the depreciation of other fixed assets shall be calculated and withdrawn according to the average life method, that is, the depreciation shall be calculated and withdrawn on average every year according to the original value of fixed assets, the specified depreciation life and the proportion of net salvage value. Article 15 Depreciation shall be withdrawn on a monthly basis and included in the current month's cost.

The production equipment of seasonal production enterprises shall be depreciated throughout the year, and all of them shall be fully depreciated during the production period and included in the cost during the production period. Chapter IV Depreciation Rate and Unit Depreciation Article 16 Depreciation of fixed assets shall be accrued by classification. The depreciation period of various fixed assets is determined according to the value of physical wear and natural wear of various fixed assets. For equipment and large precision instruments with rapid technological development, intangible loss factors can be properly considered. The depreciation period of various fixed assets is shown in the attached table. Seventeenth fixed assets depreciation rate and unit depreciation, respectively, according to the following methods:

(1) The annual depreciation rate of the average life method is determined according to the balance after deducting the net salvage value from the original value of fixed assets and the depreciation life. The net salvage value of fixed assets is the residual value minus the cleaning cost.

(2) The depreciation amount of the workload (mileage, working hours and working shifts) of professional equipment shall be determined according to the balance after deducting the net salvage value from the original value of the equipment and the specified total workload (total mileage, total working hours and total working shifts).