The current depreciation system of state-owned enterprises is very irregular, so the fixed fund will be reduced when the enterprise withdraws depreciation, so that the capital invested by investors in the enterprise will be artificially reduced once it is put into production and operation, which will affect the rights and interests of investors. At the same time, enterprises should set up depreciation funds in accordance with the regulations, which should be stored in special accounts and used for special purposes. Formally, it seems to ensure that the depreciation of enterprises is used for technological transformation, but in fact it limits the autonomy of enterprises in the use of funds, which is not conducive to the effective use of funds.
According to the requirements of establishing a capital system, the new system stipulates that enterprises shall not write off their capital when withdrawing depreciation, so as to ensure the rights and interests of investors. Moreover, depreciation funds are no longer established, special account storage is cancelled, and overall use is allowed. Some people may worry that this reform will affect the technological transformation of enterprises, which is unnecessary.
Because the cancellation of special account storage does not mean that depreciation cannot be used for technological transformation, on the contrary, it will further expand the right to use funds of enterprises and broaden the funding channels for technological transformation of enterprises. In other words, as long as the enterprise has money, it can be used for technological transformation. This reform will undoubtedly promote the technological progress of enterprises.
Historical development:
Conceptual basis of depreciation of fixed assets Before the first industrial revolution, there was almost no concept of depreciation in accounting. Since then, due to the development of large machinery and industry, especially the development of railways and the emergence of joint-stock companies, people have produced the concept of long-term assets, demanding a distinction between "capital" and "income", thus establishing that depreciation expenses are inevitable expenses in the production process of enterprises.
The emergence of the concept of depreciation is an important symbol of the transformation of enterprises from cash basis to accrual basis, and its conceptual basis is accrual basis and the matching principle that reflects the requirements of this system. According to the matching principle, the cost of fixed assets is not only the cost of obtaining current income, but also the cost of obtaining various income in the future, that is, the cost of fixed assets is the cost of obtaining income within the effective use period of fixed assets, which naturally matches the income.