hospital financial system (Cai she [21] No.36) article 47 in principle, a hospital shall, according to the nature of fixed assets, use the average life method or workload method to accrue depreciation within the expected service life. Depreciation of fixed assets does not consider salvage value. The specific measures for depreciation shall be stipulated or approved by the competent departments of provinces (autonomous regions and municipalities directly under the Central Government) in conjunction with the financial departments. Fixed assets added in the current month are not depreciated in the current month, and depreciation is accrued from next month; Fixed assets reduced in the current month will still be depreciated in the current month, and will not be depreciated from next month; Fixed assets that have been fully depreciated and continue to be used shall not be depreciated.

"Hospital Accounting System" (Cai Shui [21] No.27) Part III Instructions on the Use of Accounting Subjects

162 Accumulated Depreciation

... Hospitals should accrue depreciation for fixed assets except books and systematically share the cost of fixed assets within their expected service life. In principle, hospitals should adopt the method of average life or the method of workload for depreciation according to the nature of fixed assets. Once the depreciation method is determined, it shall not be changed at will. If it is really necessary to adopt other depreciation methods, it shall be reported to the examination and approval according to the regulations, and it shall be explained in the notes to the accounting statements. Hospital depreciation of fixed assets does not consider the estimated net salvage value.

Generally, hospitals should withdraw depreciation on a monthly basis. Fixed assets added in the current month will not be depreciated in the current month, but will be depreciated from next month. Fixed assets reduced in the current month will be depreciated in the current month, and will not be depreciated from next month.

after the fixed assets are fully depreciated, no depreciation will be withdrawn regardless of whether they can continue to be used; Fixed assets scrapped in advance will not be depreciated again.

depreciation policy consistent with that of self-owned fixed assets should be adopted when depreciation of fixed assets under financing lease is accrued. If it can be reasonably determined that the leased fixed assets will acquire the ownership at the expiration of the lease term, depreciation shall be accrued within the serviceable life of the leased fixed assets; If it is impossible to reasonably determine that the ownership of the leased fixed assets can be obtained at the expiration of the lease term, depreciation shall be accrued within the shorter period between the lease term and the serviceable life of the leased fixed assets.

if the service life of a fixed asset is extended due to subsequent expenses such as renovation, the depreciation amount shall be recalculated according to the cost of the fixed asset re-determined after renovation and the re-determined depreciation period.

The main accounting treatment of accumulated depreciation is as follows:

(1) When monthly depreciation of fixed assets is withdrawn, the account of "fund to be offset" is debited according to the amount formed by financial subsidies and funds for science and education projects, and the remaining amount of depreciation is debited to "medical business cost" [fixed assets for medical treatment and its auxiliary activities], "management expenses" [fixed assets for administrative and logistics management departments], and.

for fixed assets such as houses with multiple uses and mixed use, the depreciation amount that should be accrued should be allocated to relevant subjects in a reasonable way.

(2) when the fixed assets are disposed of or suffered from inventory loss, the relevant accounts shall be debited according to the book value of the fixed assets disposed of or suffered from inventory loss minus the balance of the fund to be offset, the account shall be debited according to the extracted depreciation, the account of "fund to be offset" shall be debited according to the balance of the fund to be offset, and the account of "fixed assets" shall be credited according to the book balance of the fixed assets.