The New Vision Of Accounting Policy For Enterprises In North-East

Recently, the Ministry of Finance (MOF), the State Administration of Taxation (SAT) has announced a notice to clarify the new accounting policy for the treatment of fixed assets and intangible assets depreciation as below:

1. Where an enterprise acquired the fixed asset after 01 July 2004 or before that date but have not been fully depreciated (except premises and buildings). The depreciation period can be reduced to no more than 40% of original period. The intangible assets can also adopt the same depreciation method.

2. If the enterprise had already adopted the standard depreciation method, eg. reducing balance method or straight-line method before 01 July 2004. It is prohibited to change the method mentioned in point 1 for reducing the depreciation period.

3. The enterprise can select one of the above mentioned depreciation method for those fixed assets acquired after 01 July 2004 (except premises and buildings). It is prohibited to change the depreciation rate, the ratio of reducing depreciation period once the accounting treatment has been confirmed.

財政部、國家稅務總局近日發出通知，明確東北老工業基地工業企業縮短固定資產折舊和無形資產攤銷年限政策，明確了以下問題：

一、 企業在2004年7月1日後新購置的固定資產和7月1日前購置並尚未折舊完的固定資產按不高於40%比例縮短折舊年限進行折舊。企業在2004年7月1日前購置的固定資產除房屋、建築物外，自2004年7月1日起，在尚未折舊年限的基礎上按不高於40％的比例縮短折舊年限。企業無形資產的攤銷也比照上述辦法執行。

二、 企業在2004年7月1日前已採用規定的固定資?折舊餘額遞減法或年數總和法，不得換用縮短折舊年限的方法。

三、 對2004年7月1日後新購置的固定資產除房屋、建築物外，企業可在縮短折舊年限辦法和餘額遞減法或年數總和法中選擇一項。 企業選擇的折舊方法和縮短固定資產折舊年限的比例一旦確定，不得隨意調整。