Service life of second-hand assets
In the case of calculating the useful life of second-hand assets, what second-hand assets are important is important. It may be a case that we owned non-business assets for business and purchased used assets.
Case 1-1. In case of using second-hand assets not used for business for business, if there is no capital expenditure for that purpose, based on the period from the date of acquisition to the time of use for the project, the following calculation method (1) Use it.
Case 1-2. In case of using second-hand assets not for business use for business, if there is capital expenditure for that purpose (in case of renovation, etc.), whether the expended amount exceeds the amount equivalent to 50% of the acquisition price or not The calculation method will change depending on.
Case 1-2-1. If it does not exceed 50% of the acquisition price, (1) in the calculation method below is used based on the period from the date of acquisition to the time of use for the project.
Case 1-2-2. When it exceeds 50% of the acquisition price, the calculation method differs depending on whether it exceeds 50% of the re-acquisition price or not.
Case 1-2-2-1. If it does not exceed 50% of the re-acquisition price, (2) of the calculation method below is used.
Case 1-2-2-2. When it exceeds 50% of the re-acquisition price, the statutory useful life is applied.
Case 2-1. In the case where the used asset was acquired and used as it is for business use and the amount expended to serve the project is less than or equal to the amount equivalent to 50% of the re-acquisition price of the used asset, it was used for the project It can be based on the number of years estimated as the usable period after time. If estimation is difficult, you can use (1) in the calculation method below based on the ownership period of the previous owner. However, when the amount of capital expenditure exceeds the amount equivalent to 50% of the acquisition price, (2) in the calculation method below is used.
Case 2-2. If the amount expended to acquire second-hand assets for business use exceeds the amount equivalent to 50% of the re-acquisition price of the second-hand asset, it will be the legal useful life.
The method of calculating the useful life of second-hand assets is as follows. Which calculation method to use is determined by the above case division.
(1) -i If the period set as the standard has passed all of the statutory useful lives, it will be the number of years equivalent to 20% of the statutory useful life.
-ii In the case where the standardized period has passed a part of the statutory useful life, the number of years equal to 20% of the elapsed years is added to the number of years less the years elapsed from the statutory useful life.
-iii If the number of years calculated by these calculations has a fraction of less than 1 year, it is rounded down, and if the number of years is less than 2 years it is 2 years.
(2) Acquisition price of used assets (including the value of capital expenditure) = A, acquisition price of second-hand assets (excluding capital expenditure amount) = B, based on the period until provision for business Assuming the useful life = C, the amount of capital expenditure of second-hand assets = D, and the legal useful life of second-hand assets = E
A ÷ (B ÷ C + D ÷ E)
It can be calculated by the above formula. If there is a fraction less than one year it will be the number of years rounded down.