1. Depreciation of fixed assets refers to the value of fixed assets that are gradually consumed in the use process and transferred to commodities or expenses. It is also the consumption of fixed assets apportioned within the service life of enterprises due to the use of fixed assets in the production and operation process.
 2. Determining the depreciation range of fixed assets is the prerequisite for depreciation accrual.
 3. Monetary estimates of the value of capital consumed during the period under review.
 4. It is also called capital consumption allowance in national income accounts.
 5. Depreciation of fixed assets refers to the systematic allocation of depreciation amount within the service life of fixed assets according to the determined method.
 6. Service life refers to the expected life of a fixed asset, or the quantity of products or services that the fixed asset can produce.
 7. The accrued depreciation amount refers to the amount of the original value of the fixed assets that should be depreciated less its estimated net residual value.
 8. For fixed assets with provision for impairment, the accumulated amount of provision for impairment of fixed assets shall also be deducted.