Depreciation is the process of transferring the value of fixed assets to cost finished products(works, services) in the production process.
Depreciation deductions are deductions included in the cost of finished products and intended to reimburse the cost of the worn-out part of fixed assets.
Amount per annum depreciation charges in this course work calculated linearly. We will calculate annual depreciation charges for each type of fixed assets using the formula:
where is the planned average annual cost of fixed assets, thousand rubles;
Annual depreciation rate, %.
The annual depreciation rate is determined for each type of asset using the formula:
, (10)
where is the useful life of the OS object, years.
Let's calculate annual depreciation rates and depreciation charges for each type of fixed assets:
Thousand rub.
Cars and equipment:
Thousand rub.
Transfer devices:
Thousand rub.
Computer Engineering:
Thousand rub.
Tools:
Thousand rub.
Vehicles:
Thousand rub.
Let's define total amount depreciation charges in the planned year:
Thousand rub.
We summarize the results of depreciation calculations in Table 3.
Table 3 - Calculation of depreciation charges in the planned year
|
Average annual cost of fixed assets, thousand rubles. |
Useful life, years |
Annual depreciation rate, % |
Amount of depreciation charges, thousand rubles. |
|
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2. Machinery and equipment | ||||
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3. Transfer devices | ||||
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4. Computer technology | ||||
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5. Tools | ||||
|
6.Vehicles | ||||
From the 1st day of the month following the month in which the fixed asset item (FA) is accepted for accounting, such fixed assets must begin to be depreciated (clause 21 of PBU 6/01). This must be done in one of 4 ways, which are provided for by PBU 6/01. We will tell you in our consultation how to determine the annual amount of depreciation charges for each of them and what information is needed for this.
What is needed to determine the annual depreciation amount?
To determine the amount of depreciation for the year, you must have the appropriate data for the calculation. This information depends on the chosen depreciation method.
Let’s immediately make a reservation that we will not consider the method of writing off cost in proportion to the volume of production (work) because this method does not involve calculating the annual amount of depreciation. Depreciation under this option is calculated for each specific reporting period (for example, a month), for which the natural indicator of the volume of production (work) is known.
The remaining 3 methods of calculating depreciation of fixed assets are (clause 18 of PBU 6/01):
- linear method;
- reducing balance method;
- a method of writing off cost based on the sum of the numbers of years of useful life.
The amount of annual depreciation charges is calculated based on information about the cost of the fixed asset (initial, replacement or residual), useful life (USI), and the applied acceleration factor.
We present the data that you need to have to determine annual depreciation using formulas. Let us immediately indicate abbreviated notations for the formulas below:
| What you need to know when calculating annual depreciation of fixed assets using the method | ||
|---|---|---|
| linear: | reducing balance: | write-off of cost based on the sum of numbers of years of useful life: |
SPI - useful life of an asset in years | O - the residual value of the fixed asset at the beginning of the year in which depreciation is calculated; SPI; K - coefficient established by the organization (not higher than 3) | C is the initial or replacement (in case of revaluation) cost of the fixed asset; PL - the number of years remaining until the end of the useful life of the asset; ∑ЧЛ - sum of numbers of years of useful life of an asset |
How to calculate the annual depreciation amount?
To determine the annual amount of depreciation, you can use the formulas below.
Thus, with the linear method of calculating depreciation of fixed assets, the following formula is used to determine the annual amount of depreciation charges:
G = S / SPIUsing the reducing balance method for annual depreciation, the formula will be as follows:
G = O / SPI * KAnd when using the method of writing off the cost by the sum of the numbers of years of the useful life, to calculate the annual value of depreciation charges, the following formula must be used:
G = C * CL / ∑CHLIntroduction
Depreciation charges, which represent cash, intended to compensate for the depreciation of fixed assets, are necessary for the enterprise to avoid losses and maintain profitability.
Depreciation deductions for the full restoration of capital are made from income received from the sale of products created with the help of capital funds. Moreover, in fact, depreciation charges are included in the cost of the data produced capital funds products and represent the transfer of the value of gradually deteriorating fixed assets to the cost of manufactured products.
Thus, depreciation is the process of reproduction of capital. The faster it is recreated, the more effective commercial activity organization, which confirms the importance of studying this component of finance. This becomes especially relevant in conditions where state level tasks are set such as the rapid development of high-tech industries, increasing investment attractiveness countries, increasing the share of knowledge-intensive production, requiring the effective use of accumulated resources for this cash funds and capital.
In addition, depreciation charges are the enterprise’s own financial resource, which have great advantages compared to profit, since they are not taxed.
The purpose of the course project is to study the calculation of depreciation charges and their impact on cash flows.
The tasks that were assigned to work on this project are presented below:
identifying the main theoretical aspects, revealing the concepts of fixed assets, their depreciation and amortization;
study and comparative analysis of methods for calculating depreciation charges;
consideration of an example of depreciation at an enterprise;
coverage of important measures to improve depreciation methods.
The subject of the study is methods for calculating depreciation charges, the choice of which is considered a key stage in the implementation of depreciation policy.
The methodological basis of the research in the course work is the basic methods of calculating depreciation charges used both in accounting and tax accounting, namely:
Linear method;
Reducing balance method;
Method of writing off cost by the sum of numbers of years of useful life;
Method of writing off cost in proportion to the volume of production;
Nonlinear method;
As for the project structure, it can be presented as follows:
The course project consists of three chapters, which reflect:
Economic content depreciation process;
Analysis of depreciation methods;
Improving methods for calculating depreciation;
In the course project, five tables were used to calculate depreciation charges using various methods;
This project takes up thirty-seven sheets of typewritten text.
The level of coverage of this topic in literary, journalistic sources and the media is recognized as quite high, which creates favorable conditions for working on the project.
When writing the course project, the works of the following scientists were used: Babaev Yu.A., Kovalev V.V., Astakhov V.P. Savitskaya G.M., Veretennikova I.I., Safronova N.A. and others.
Chapter 1. Economic content of the depreciation process
1.1 The role of depreciation in the process of updating capital production assets
In conditions of high rates of scientific and technological progress, depreciation serves as one of the most important sources of expanded reproduction of fixed production assets and is inextricably linked with the process of wear and tear of objects of fixed production assets.
For timely replacement of fixed production assets without damage to the entrepreneur, it is necessary that their cost be fully transferred to finished products. Only under this condition can the process of reproduction of fixed production assets be carried out systematically and efficiently.
Fixed production assets (FPF) are means of labor that are repeatedly involved in the production process, while maintaining their natural form, gradually wearing out, and transfer their value in parts to newly created products.
Fixed production assets are involved in the process of manufacturing products or providing services (machines, machines, instruments, transfer devices etc.).
The production capacity of the enterprise and, to a large extent, the level of technical equipment of labor depend on the volume of general production.
The following groups and subgroups of fixed production assets are distinguished.
Buildings (architectural and construction objects for industrial purposes: workshop buildings, warehouses, production laboratories, etc.).
Structures (engineering and construction facilities that create conditions for the production process: tunnels, overpasses, car roads, chimneys on a separate foundation, etc.).
Transmission devices (devices for transmitting electricity, liquid and gaseous substances: electrical networks, heating networks, gas networks, transmissions, etc.).
Machinery and equipment (power machines and equipment, working machines and equipment, measuring and control instruments and devices, computer technology, automatic machines, other machinery and equipment, etc.).
Vehicles (diesel locomotives, wagons, cars, motorcycles, cars, trolleys, etc., except for conveyors and transporters included in the production equipment).
Tools (cutting, impact, pressing, compacting, as well as various devices for fastening, mounting, etc.), except for special tools and special equipment.
Production equipment and accessories (items to facilitate production operations: work tables, workbenches, fences, fans, containers, racks, etc.).
Household equipment (office and household supplies: tables, cabinets, hangers, typewriters, safes, duplicating machines, etc.).
Other fixed assets. This group includes library collections, museum values etc.
Depending on the degree of direct impact on the objects of labor and the production capacity of the enterprise, fixed production assets are divided into active and passive. The active part includes machines and equipment, vehicles, tools. The passive part of fixed assets includes all other groups of fixed assets. They create conditions for normal operation enterprises.
In the process of operation, fixed production assets are subject to physical and moral wear and tear.
Physical wear and tear refers to the loss of fixed production assets of their technical parameters. Physical wear can be operational or natural. Operational wear and tear is a consequence of production consumption. Natural wear occurs under the influence of natural factors (temperature, humidity, etc.).
Obsolescence of fixed production assets is a consequence of scientific and technological progress. There are two forms of obsolescence:
a form of obsolescence associated with a reduction in the cost of reproduction of industrial enterprises as a result of improving equipment and technology, the introduction of advanced materials, and increasing labor productivity;
a form of obsolescence associated with the creation of more advanced and economical industrial enterprises (machinery, equipment, buildings, structures, etc.).
The assessment of obsolescence of the first form can be defined as the difference between the original and replacement cost of fixed assets. The assessment of obsolescence of the second form is carried out by comparing the reduced costs when using obsolete and new fixed assets.
In order to restore and avoid losses associated with physical and moral wear and tear, a depreciation fund is formed at each enterprise - a special cash reserve intended for the reproduction of fixed production assets, important element the formation of which are the methods used in the process of calculating depreciation, which are the subject of this course project.
The sinking fund is a financial resource for capital investments and is intended for simple reproduction of OPF, replacement of worn-out funds with new copies of equal value.
Depreciation is the process of gradually transferring the value of fixed production assets as they wear out to manufactured products, turning them into cash and accumulating financial resources for the purpose of subsequent reproduction of fixed production assets.
From an economic point of view, depreciation is the monetary expression of part of the cost of fixed assets transferred to a newly created product.
Also, depreciation charges represent an attribution to the cost of accrued depreciation of the general fund, but in contrast to other cost items ( material costs, wages, deductions, etc.) the depreciation process does not lead to outflow financial resources, since depreciation charges are reimbursed after the sale of products. In addition, since depreciation charges accumulate gradually, and are spent on updating fixed production assets at a time, only after their service life has expired, accrued depreciation until the replacement of retired fixed production assets is temporarily free and serves additional source expanded reproduction. Thus, depreciation plays a big role in the renewal of fixed production assets, as it contributes to the transfer of the value of fixed production assets as they wear out to manufactured products, turning them into cash and the accumulation of financial resources for the purpose of subsequent reproduction of fixed production assets.
1.2 Characteristics of depreciation methods used in accounting
IN Lately Scientific and technological progress becomes the determining direction for the development of production, under the influence of which new macroeconomic proportions are formed. They consist in changing the relationship between compensation and accumulation, accumulation and investment. This leads to a separation of the value and speed of movement of depreciation charges from the amount of depreciation and circulation of fixed capital (its active part). The need to update fixed assets caused by competition forces the accelerated write-off of equipment in order to generate depreciation charges for their subsequent investment in investments. Thus, intensive reproduction is carried out. Consequently, depreciation charges become an important tool for regulating the activities of the organization. In these conditions, providing enterprises with the opportunity to apply various methods of calculating depreciation charges is of particular importance.
According to the Accounting Regulations “Accounting for Fixed Assets,” depreciation of fixed assets can be carried out in one of the following ways:
linear method;
reducing balance method;
method of writing off value by the sum of the numbers of years of useful life;
method of writing off the cost in proportion to the volume of products (works);
The amount of depreciation deductions is determined monthly, separately for each item of depreciable property.
Accrual of depreciation begins on the 1st day of the month following the month in which this object was put into operation, stops on the 1st day of the month following the month when the cost of the object was completely written off or when this object was removed from the depreciable property .
Depreciation is calculated in accordance with the depreciation rate determined for the object based on its useful life.
Required condition is that the use of one of the methods of calculating depreciation for a group of similar ones is carried out throughout the entire useful life of the objects included in this group.
The useful life of an object of fixed assets is determined by the organization when accepting the object for accounting. This period is determined taking into account the following factors:
the expected life of the facility in accordance with its expected productivity or capacity;
expected physical wear and tear, depending on the operating mode (number of shifts), natural conditions and the influence of an aggressive environment, the repair system;
regulatory and other restrictions on the use of this object (for example, rental period).
In cases of improvement (increase) in the initially adopted standard indicators of the functioning of a fixed assets object as a result of reconstruction or modernization, the organization revises the useful life of this object, as discussed in the previous chapter.
Also, fixed assets whose consumer properties do not change over time are not subject to depreciation - land and environmental management facilities.
Depreciation of fixed assets not used in production activities is reflected from own sources, formed from profits remaining at the disposal of the enterprise.
Let's take a closer look at the methods for calculating depreciation charges at an enterprise.
The straight-line method consists in the organization evenly accruing depreciation over the entire standard service life or useful life of the fixed asset. The amount of depreciation per month (Am) using the straight-line method is determined based on the depreciable cost of the object and the depreciation rate calculated based on the useful life of this object.
Where
Where
SPI is the useful life of a fixed asset item in years.
The amount of depreciation charges for a month is calculated based on the useful life expressed in months, using the formula:
2. Reducing balance method
With the reducing balance method annual amount accrued depreciation is calculated based on the under-depreciated cost determined at the beginning of the reporting year (the difference between the depreciable cost and the amount of depreciation accrued before the beginning of the reporting year) and the depreciation rate calculated based on the useful life of the object and the acceleration factor adopted by the organization.
Depreciation charges for the year are determined as follows:
Where:
A.S. - depreciable cost of fixed assets;
On - the annual depreciation rate as a percentage of the depreciable cost of the object, calculated using a formula based on the useful life (the calculation is given below).
Where:
SPI - useful life of fixed assets, years;
K - increasing coefficient, equal, according to PBU 6/01, no more than 3. The increasing coefficient is a component of the depreciation rate. Depreciation is calculated in relation to an object of depreciable property in accordance with the depreciation rate established on the date of putting this object into operation. At the same time, during the depreciation period of an object of fixed assets, the depreciation rate cannot be changed, including the value of the coefficient.
The maximum value of the increasing coefficient can be set for depreciation of fixed assets used in leasing transactions. More details about the procedure for applying increasing coefficients will be discussed below.
The amount of monthly depreciation charges (Am) is calculated annually based on the annual amount of depreciation charges using the formulas:
Cost write-off method based on the sum of numbers of years of useful life
The application of this method involves determining the annual amount of depreciation based on the depreciable cost of fixed assets and the ratio, the numerator of which is the number of years remaining until the end of the useful life of the object, and the denominator is the sum of the numbers of years of its useful life.
The sum of the numbers of years of the useful life of an object is determined by the following formula:
Where
SSL - the sum of the numbers of years chosen by the organization independently within the established range of the useful life of the object;
SPI is the useful life of an object, independently selected by the organization within the established range.
Method of writing off cost in proportion to the volume of products (works, services)
This method of calculating depreciation of a fixed asset object consists in calculating depreciation based on the depreciable cost of the object and the ratio of natural indicators of the volume of products produced in the (current) period to the resource of the object. The resource of an object is understood as the amount of products (works, services), in physical terms, which, in accordance with technical documentation, can be produced throughout the entire life of the object. Depreciation charges are calculated on a productive basis in each reporting year using the following formula:
Where
АОi - the amount of depreciation charges in the reporting year i;
A.S. - depreciable cost of fixed assets;
OPRi - predicted volume of product output during the service life; = 1, ..., - years of the useful life of the object.
Thus, having considered the main methods of calculating depreciation charges used in accounting, it should be noted that the most effective is the calculation of depreciation in proportion to the volume of production, as it promotes the intensive use of fixed assets and allows to avoid distortions in the cost of products due to the irregular activities of the organization.
1.3 Characteristics of depreciation methods used in tax accounting
The calculation of depreciation charges on depreciable property for tax purposes has some features compared to the calculation of depreciation for the purposes of accounting.
From January 1, 2009, tax accounting of fixed assets has changed significantly. Amendments made Federal law dated July 22, 2008 No. 158-FZ, for the most part do not concern linear method depreciation charges. New order Using this method allows you to significantly reduce income tax in the first years of use of the facility. In addition, companies that received fixed assets in free use, will be able to amortize capital investments in such facilities.
As before, Chapter 25 of the Tax Code of the Russian Federation provides for two methods of calculating depreciation:
Linear;
Nonlinear.
Both of these methods can be equally used to calculate depreciation charges, both for fixed assets and for intangible assets. The amount of depreciation is determined by the taxpayer monthly for each item of depreciable property.
As for accounting purposes, for tax purposes, the calculation of depreciation charges for an object of depreciable property begins on the first day of the month following the month in which this object was put into operation. The accrual of depreciation charges on an object of depreciable property ceases from the first day of the month following the month when the cost of such an object was completely written off or when this object was removed from the depreciable property for any reason. With the introduction of Chapter 25 of the Tax Code of the Russian Federation, the organization’s fixed assets are combined into ten depreciation groups in accordance with the useful life, which establish the appropriate range of useful life of fixed assets.
Table 1 Depreciation groups
Group number Operating life Composition of fixed assets 11-2 years Machinery and equipment, as the main tools of production 22-3 years Machinery and equipment, perennial plantings 33-5 years Structures and transmission devices, machines and equipment 45-7 years Buildings (except residential), structures and transmission devices, machines and equipment, household and production equipment, working livestock, perennial plantings (berry crops) 57-10 years Buildings and structures and transmission devices, machinery and equipment, vehicles, perennial plantings (lemon, orange) 610-15 years Buildings and transmission devices, housing, machinery and equipment, vehicles, perennial plantings (stone fruit crops) 715-20 years Buildings (except residential), structures and transmission devices, machinery and equipment, vehicles 820-25 years Buildings (except residential), structures and transmission devices, machinery and equipment, vehicles, industrial and household equipment. 925-30 years Buildings (except residential), structures and transmission devices, machinery and equipment, vehicles 10 over 30 years Buildings (except residential), structures and transmission devices, housing, machinery and equipment, vehicles, long-term plantings.
The procedure for applying the linear method has not changed fundamentally. The amount of depreciation accrued for one month in relation to an object of depreciable property is determined as the product of its initial cost and depreciation rates determined for a given object. When applying the linear method, the depreciation rate for each item of depreciable property is determined by the formula:
n- useful life of this object
Taxpayers use the linear method of calculating depreciation in mandatory to buildings, structures and transmission devices included in depreciation groups 8-10, regardless of the timing of commissioning of these objects.
The nonlinear method assumes that the monthly depreciation rate, determined based on the useful life of the object, is applied each time to the residual value of the object formed at the beginning of the current month.
Its main difference from the previous non-linear method is that depreciation should be calculated not for each individual fixed asset object, but according to depreciation groups. The advantage of the non-linear method is that at the initial stage of depreciation, a more accelerated mechanism can be used.
There are no restrictions for switching from a linear to a non-linear method, except that this is possible only from the beginning of the tax period, which is a calendar year, and such a transition should occur no more than once every five years.
On the 1st day of the tax period, from the beginning of which accounting policy For tax purposes, the use of a non-linear method of calculating depreciation has been established; for each depreciation group (subgroup), a total balance is determined, which is calculated as the total cost of all depreciable property items assigned to this depreciation group. Subsequently, the total balance of each depreciation group is determined on the 1st day of the month, for which the amount of accrued depreciation is determined.
For depreciation groups and their subgroups, the total balance is determined without taking into account depreciable property, for which depreciation is calculated using the straight-line method.
When the initial cost of fixed assets changes in cases of completion, additional equipment, reconstruction, modernization, technical re-equipment, partial liquidation of objects, the amounts by which the initial cost of these objects changes are taken into account in the total balance of the corresponding depreciation group (subgroup).
The total balance of each depreciation group is reduced monthly by the amount of depreciation accrued for this group. The amount of depreciation accrued for one month for each depreciation group is determined based on the product of the total balance of the corresponding depreciation group at the beginning of the month and the depreciation rates, which will be presented below, using the following formula:
A=B k, where
A - the amount of depreciation accrued for one month for the corresponding depreciation group (subgroup); B - total balance of the corresponding depreciation group (subgroup); k is the depreciation rate for the corresponding depreciation group (subgroup).
In order to apply the non-linear depreciation method, the following depreciation rates are applied.
Table 2 Depreciation rates for depreciation groups
Depreciation group Depreciation rate (monthly), % First 14.3 Second 8.8 Third 5.6 Fourth 3.8 Fifth 2.7 Sixth 1.8 Seventh 1.3 Eighth 1.0 Ninth 0.8 Tenth 0.7
In addition, to achieve the expected result in a shorter time using the nonlinear method, the use of a system of increasing coefficients is provided.
Taxpayers have the right to apply a special coefficient to the basic depreciation rate, but not higher than 2.
In relation to depreciable fixed assets used to work in aggressive environments and (or) extended shifts.
An aggressive environment is understood as a set of natural and (or) artificial factors, the influence of which causes increased wear (aging) of fixed assets during their operation. Working in an aggressive environment also equates to the presence of fixed assets in contact with an explosive, fire-hazardous, toxic or other aggressive technological environment, which can serve as the cause (source) of initiating an emergency.
When applying the non-linear depreciation method, the specified special coefficient does not apply to fixed assets belonging to the first - third depreciation groups.
2. In relation to taxpayers’ own depreciable fixed assets - industrial-type agricultural organizations (poultry farms, livestock farms, fur-bearing state farms, greenhouse plants).
3. In relation to taxpayers’ own depreciable fixed assets - organizations that have the status of a resident of an industrial-production special economic zone or a tourist and recreational special economic zone.
4. In relation to depreciable fixed assets related to objects with high energy efficiency, in accordance with the list of such objects, established by the Government Russian Federation, or to objects of high class energy efficiency, if in relation to such objects, in accordance with the legislation of the Russian Federation, the determination of their energy efficiency classes is provided.
Taxpayers have the right to apply a special coefficient to the basic depreciation rate, but not higher than 3 in the following cases.
1. In relation to depreciable fixed assets that are the subject of the contract finance lease(leasing agreement), taxpayers for whom these fixed assets must be accounted for in accordance with the terms of the financial lease agreement (leasing agreement). The specified special coefficient does not apply to fixed assets belonging to the first - third depreciation groups.
2. In relation to depreciable fixed assets used only for scientific and technical activities.
It is allowed to charge depreciation below the established depreciation standards by decision of the head of the taxpayer organization, enshrined in accounting policy for tax purposes in the manner established for choosing the depreciation method used.
When selling depreciable property by taxpayers using reduced depreciation rates, the residual value of the items of depreciable property being sold is determined based on the actually applied depreciation rate.
Fundamental difference new version The non-linear method of calculating depreciation from previous standards is that the organization will not independently calculate depreciation rates. They are directly established in Article 259.2 of the Tax Code of the Russian Federation.
Thus, having studied the basic methods of calculating depreciation deductions used in tax accounting, it should be noted that, in contrast to the methods of calculating depreciation used in accounting, they imply the division of depreciable property into ten groups depending on the service life, as well as the use of established tax codes RF depreciation standards.
Chapter 2. Analysis of depreciation methods
2.1 Comparative analysis of various methods for calculating depreciation charges
For comparative analysis methods for calculating depreciation charges will be based on data from JSC Alekseevsky Milk Canning Plant.
CJSC "Alekseevsky Milk Canning Plant" is a large, multifunctional enterprise engaged in the production of condensed milk products and dairy products not included in other groups.
This enterprise is also profitable because net profit for the reporting period is 176125 thousand. rubles, which is 80,598 thousand rubles more than in the previous period.
In addition, CJSC Alekseevsky Milk Canning Plant is a large enterprise. The volume of total capital in the current year. amounted to 1385367 tr. During the year, more than 176,090 tr. increased and by the end of the year amounted to 1,561,457 thousand rubles.
To conduct a comparative analysis, it is necessary to apply the methods of calculating depreciation used in accounting for more detailed analysis and identifying the most effective accrual methods.
To calculate depreciation charges, it is necessary Firstly, determine the initial cost of equipment accepted for accounting. In this case, it will be water treatment equipment with an initial cost of 200,000 rubles, and secondly, a useful life of 6 years, with an established depreciation rate of 16.67%.
Linear method.
Depreciation charges will be accrued annually for this facility.
deductions in the amount of 33,340 rubles, since (200,000 * 0.1667). And monthly charges will be 1/12 of this amount, namely 2,778 rubles for production costs.
The advantage of this method is the simplicity of calculating annual (monthly) depreciation charges.
Disadvantage - when calculating depreciation, neither the volume of products produced, nor the operating mode of the facility, nor the intensity of the production program are taken into account.
Reducing balance method.
The cost of the commissioned facility is 200,000 rubles. The service life is 6 years, depreciation per year will be 16.67. Acceleration coefficient = 2. Taking into account the acceleration coefficient annual depreciation equals 33.34%
Table 3 Calculation of depreciation charges using the reducing balance method
Year Residual value at the beginning of the year Annual depreciation rate Amount of depreciation deductions Residual value at the end of the year 1200 00016.67 * 2 = 33.3466680133320213332033.34444488887238887233.34296305924245924233.3 419 7513949153949133,34131662632562632533,34877617 542Total 182451
The accumulated depreciation over six years is 182,451 rubles
The advantage of this method is that it involves a consistent reduction in the annual amount of depreciation charges and a higher degree of depreciation of fixed assets is achieved. With this method, in the first years, most of the cost of the fixed asset is written off.
Disadvantage - when attributing the under-depreciated part of the cost to production costs of the last, sixth year, it will lead to a significant decrease in profit.
A method of writing off cost based on the sum of the numbers of years of useful life.
The cost of the object is 200 thousand rubles. Its useful life is 6 years. The sum of the numbers of years of use is 21, since all the years of useful use are added together.
Table 4 Calculation of depreciation charges by writing off the cost by the sum of the numbers of years
Year Efficiency coefficient Amount of depreciation deductions Depreciable part,% 16/2157 14328.625/2147 61923.834/2138 0951943/2128 57114.352/2119 0479.561/2195234.8 Total 200 0001 00
As can be seen from the table, the annual amount of depreciation charges decreases from year to year, the amount of accumulated depreciation, on the contrary, grows, reaching the original cost by the end of the sixth year.
The write-off method is proportional to the volume of production.
Product output by year is distributed as follows.
Total - 7,990 units.
Depreciation charges per unit of production over the entire useful life of the equipment will be 25.03% (200,000/7,990).
Table 5 Calculation of depreciation charges using the write-off method in proportion to the volume of production
Year Volume of products Amount of depreciation charges, rub. Annual sum of depreciation charges, rub. Depreciated part,% 1170025.03=200000/799042 55121.3=(42551/200000)*1002165025.0341 30020.73160025.0 340 01620 4126025.0331 512 15 ,8598025.0324 50912.2680025.0320 02410Total7 990200 000100
This method of calculating depreciation is also called production. Unlike those previously discussed, this method does not ensure an even distribution of depreciation charges throughout the year. The amount of accrued depreciation depends on the specific volume of production.
Now, based on earlier calculations, we will draw conclusions about the advisability of using methods for calculating depreciation charges.
With the straight-line method, depreciation charges are distributed evenly over the years of operation.
With the declining balance method, the organization accrues most of the depreciation in the first years of operation of the water treatment equipment, and then gradually reduces the accruals. Two arguments are usually given in favor of the declining balance method, as opposed to straight-line accrual:
The costs of maintaining and repairing an object increase as its service life increases (that is, the diminishing balance method produces a more accurate final financial result);
Many assets lose a significant part of their market value already in the first years of operation.
For the method of writing off cost based on the sum of the numbers of years of useful use, the largest deductions occur in the first years of operation of the fixed asset. In subsequent years, the amount of depreciation charges drops quite sharply.
It is obvious that when writing off the cost in proportion to the volume of production (work), an increase in annual output entails a proportional increase in depreciation charges.
Based on a comparative analysis of depreciation methods, we come to the conclusion that the method chosen in accordance with the determination of the result of factors affecting the depreciation object and the economic process in which it is directly involved will be economically justified. If, according to the calculations of the enterprise, it is economically profitable to write off as quickly as possible book value equipment, the write-off method is justified based on the sum of the numbers of years of useful use, etc.
Thus, if an organization strives for intensive use of fixed assets, then it is advisable to write off their value either by the sum of the number of years of useful use, which contributes to the rapid accumulation of funds for updating and expanding the production base, or in proportion to the volume of production, which will avoid distortions in the cost of products due to the irregular activities of the organization.
2.2 Assessment of the impact of depreciation policy on the amount of income tax and property tax
depreciation accounting tax
The depreciation policy is integral part economic policy state, aimed at managing depreciation charges that are formed during the operation of fixed assets.
The purpose of depreciation policy is to create favorable conditions for all business entities for the reproduction and renewal of fixed assets, activation investment activities and acceleration of scientific and technical progress.
In the process of forming the depreciation policy of an enterprise, the following factors are taken into account:
The volume of used fixed assets subject to depreciation;
Method for estimating the value of used fixed assets subject to depreciation;
The actual period of expected use of the depreciable asset at the enterprise;
Methods of calculating depreciation allowances permitted by law;
Inflation rate in the country.
The depreciation policy carried out at the enterprise affects not only the level of physical and moral wear and tear of fixed production assets, the technical level and production efficiency, but also the amount of tax payments. In this regard, the enterprise needs to pursue a depreciation policy that would minimize tax payments, increase profits and improve its financial condition.
The amount of depreciation charges is influenced by such factors as the initial (replacement) cost of fixed assets, their useful life, methods for calculating depreciation charges, the application of increasing and decreasing factors to the basic depreciation rate, etc.
Depreciation charges are included in the cost of production and are reflected in tax payments organizations for property tax and profit tax, namely the accrued amount of depreciation deductions determines the amount of profit tax and property tax of the enterprise. Moreover, the property tax of an enterprise also affects the amount of income tax.
Thus, all these indicators are in close unity and interconnection. A change in one of them inevitably causes a chain of subsequent fluctuations that affect financial results activities of the enterprise.
The accrued amount of depreciation charges affects the profit of the enterprise. The higher the depreciation charges, the lower the profit and vice versa.
By reducing profits, an increase in depreciation charges leads to a decrease in income tax. The resulting income tax savings are called a “tax shield.”
The property tax of an organization is calculated as the product of the rate (currently the maximum rate is 2.2%) and average annual cost property. When calculating the taxable base for this tax (the average annual value of property), fixed assets are taken into account at their residual value.
Thus, depreciation leads to a decrease in the residual value of fixed assets and therefore reduces property tax payments.
Consequently, the higher the amount of depreciation deductions, the higher the tax protection or tax shield of the enterprise.
Thus, for any enterprise it is very important that, ultimately, a scientifically based depreciation policy leads to the maximization of the value: net profit plus depreciation charges.
Chapter 3. Improving the depreciation policy of the enterprise
The development of an enterprise's depreciation policy should be a comprehensive modeling process, which involves analyzing cash flows from depreciation by various methods, the dynamics of input and output of fixed assets, taxation, and modeling various options for the state of the enterprise depending on the application of certain measures. Optimal depreciation and accounting policies should be determined on the basis of an integrated approach based on specific economic conditions activities specific enterprise.
An analysis of the current depreciation system at CJSC Alekseevsky Milk Canning Plant indicates the need to move from depreciation as a means of reimbursing the cost of capital to depreciation that stimulates the renewal of fixed capital. To do this, it is proposed to use the most common regulators in practice to achieve specific goals:
Revaluation of the value of fixed assets;
Conservation of fixed assets;
Methods for calculating depreciation.
To formulate an effective depreciation policy, it is necessary to follow a number of recommendations.
First of all, at the enterprise there is a need to improve the quality of assessment of the cost of fixed production assets. In other words, fixed production assets must be regularly revalued at market value for tax purposes, as well as in order to determine the amount of depreciation charges that form the necessary and sufficient depreciation fund for their renewal.
In addition, for an enterprise, one of the most important components of the management process should be control, including control over the internal sources of the enterprise. Organizations often use depreciation funds to pay wages employees, debt repayment, etc.
It follows that the process of strengthening the targeted expenditure of depreciation funds in CJSC Alekseevsky Milk Canning Plant would be facilitated by the introduction of control regimes over the internal funds of the enterprise, from which the expanded and technical re-equipment of production is financed.
An important direction for improving depreciation policy is the expansion of methods for calculating depreciation charges. The use of various methods for calculating depreciation allows enterprises to regulate, within the service life of labor tools, the amount of depreciation amounts attributed to the cost of production, and thereby purposefully influence the financial results of production and the economic stability of the enterprise.
In CJSC "Alekseevsky Milk Canning Plant", along with those methods of calculating depreciation that are used in the organization, the most used method should be the method of calculating depreciation depending on production volumes. In addition, for the passive part of fixed assets, that is, for buildings and structures, it would be advisable to use the straight-line depreciation method. These recommendations will help optimize the depreciation policy of the enterprise, which consists in balanced budget depreciation.
The next direction for improving the depreciation policy at CJSC Alekseevsky Milk Canning Plant is the use of a depreciation bonus, which will allow one-time write-off of 10 to 30% of the cost of capital investments. In relation to expensive fixed assets, the use of a depreciation bonus will allow the company to significantly reduce current income tax payments in the year in which the depreciation bonus was expensed.
Thus, having considered the main directions and recommendations for improving the depreciation policy of the enterprise, it should be noted that the enterprise needs:
Introduce a control regime over the internal funds of the enterprise
When calculating the amount of depreciation charges in to a greater extent use the method of writing off cost in proportion to production volume
Use bonus depreciation
Improve the quality of assessment of the value of fixed production assets
Conclusion
Summing up the results of the work done, noting the completion of the tasks set at the beginning, we will outline the main conclusions.
Depreciation is the process of gradually transferring the value of fixed assets as they wear out to manufactured products, turning them into cash and accumulating financial resources for the purpose of subsequent reproduction of fixed assets.
Depreciation plays a big role in the renewal of fixed production assets, as it contributes to the transfer of the value of fixed production assets as they wear out to manufactured products, turning them into cash and the accumulation of financial resources for the purpose of subsequent reproduction of fixed production assets.
The choice of methods by which the values of depreciation charges will be calculated is a responsible step towards achieving the goals of “painless” formation of restoration funds, which represent one of the main internal sources of financing the activities of any enterprise. Today, the most common methods of calculating depreciation are:
The straight-line method consists of the organization evenly accruing depreciation over the entire standard service life or useful life of the fixed asset.
Declining balance method - assumes that the annual amount of accrued depreciation is calculated based on the under-depreciated cost determined at the beginning of the reporting year (the difference between the depreciable cost and the amount of depreciation accrued before the beginning of the reporting year) and the depreciation rate calculated based on the useful life of the object and the acceleration factor adopted organization.
The method of writing off the cost in proportion to the volume of products (works, services) is the calculation of depreciation based on the depreciable cost of the object and the ratio of natural indicators of the volume of products (works, services) produced in the (current) period to the resource of the object.
The method of writing off cost by the sum of the numbers of years of its useful life - involves determining the annual amount of depreciation based on the depreciable cost of fixed assets and the ratio, the numerator of which is the number of years remaining until the end of the useful life of the object, and the denominator is the sum of the numbers of years of its life beneficial use. The largest deductions occur in the first years of operation of the fixed asset
Having considered all the main methods of calculating depreciation that are used in practice Russian organizations, came to the conclusion that each method has its own advantages and disadvantages. Depending on the correct assessment of the factors that determine the activities of an economic entity, each of the listed methods can become either the most optimal or absolutely unacceptable in order to ensure an effective depreciation policy of the enterprise.
List of used literature
Tax Code of the Russian Federation / Internet portal http://www.nalkodeks.ru/
Accounting Regulations "Accounting for Fixed Assets"
Astakhov V.P. / Accounting (financial) accounting: Textbook // 5th edition, revised and expanded. - Moscow: ICC "Mart", 2009
Accounting theory. Textbook for universities / Babaev Yu. A. // 3rd edition, revised. and additional - M.: UNITY-DANA, 2006
I.I. Veretennikova - "Depreciation and depreciation policy"
K. Voloshin / New rules of depreciation // Internet portal " Tax law. Analytics", http://www.taxpravo.ru/analitika/
A, A Volodin. Financial management. Enterprise finance. Textbook-2011. N. Ivashkovsky / Comparison of depreciation methods // "Akintsev and Partners" -2010
Enterprise finance. Textbook / Kovalev V.V. // Moscow, "Welby Avenue", 2010
Financial accounting - Kushnir I.V. >> Depreciation of fixed assets-2012
Accounting. Textbook for universities / Sapozhnikova N. G. // Knorus Publishing House, 2010
Analysis economic activity enterprises. Textbook / G. V. Savitskaya. - M., 2009.
Safronova N.A // Textbook for higher students educational institutions students studying in economic specialties and areas. Enterprise Economics-2010
Economics of Enterprise / Proc. / V.M. Semenov. - M.: 2009
Sokolov V.Ya //Accounting for depreciation in Russia
Cherva A. Depreciation policy of the organization.//Chief Accountant.-2009.- No. 30.
Cheprakova T.N., Inants E.M. Current issues of depreciation policy in a modern enterprise
Financial management / Ed. E.I. Shokhina. - M: ID FBK-PRESS, 2010
Schroeder E.G - Methods of calculating depreciation - 270 p. - 2009
Valuation of enterprises (businesses) - tutorial, chapter 5.3 (Shcherbakov V.A., Shcherbakova N.A.) - 2012
Depreciation of fixed assets / Analytical information portal "Clerk" // http://www.klerk.ru/
Methods for calculating depreciation / Internet library // http://www.kfmesi.ru/bibl/
Internet encyclopedia "Wikipedia" / ru.wikipedia.org/://www.faito.ru/pages/infresources/fkglossary/glossary Information and review portal. Financial Dictionary://dic.academic.ru/dic.nsf/econ_dict/2914 Economic dictionary.
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2. Amount of depreciation charges
3. Depreciation funds
4. Annual depreciation charges
5. Calculation of depreciation charges
6. Find depreciation charges
7. Depreciation of fixed assets
8. Methods of depreciation
9. Annual amount of depreciation charges
10. Depreciation methods
11. Amount of depreciation charges
12. Accounting for depreciation
13. Groups of depreciation charges
14. Types of depreciation charges
15. Depreciation charges for intangible assets
16. Procedure for depreciation charges
The company (taxpayer) can independently choose the depreciation method, unless otherwise established by law in relation to certain objects. An indispensable condition is the application of the chosen depreciation method to a group of similar objects throughout their entire useful life. The accumulation and expenditure of depreciation charges are not reflected separately in accounting. They are spent on financing serious investments and long-term financial investments.
Currently, in accordance with the current Russian tax legislation For tax accounting purposes, property is divided into depreciable and non-depreciable. In turn, depreciable property belongs to one of 10 depreciation groups based on its useful life. It must be emphasized that it is possible to determine the useful life of an organization without the help of others, taking into account subsequent events: the restrictions established by the regulatory legal framework, expected period of use, expected physical wear and tear under the planned operating mode.
Depreciation charges are the company's monetary resource. Depreciation is characterized by a certain stability. This is due to fixed rates and the possibility of revaluation of fixed assets. Depreciation charges have greater advantages compared to profit, since they are not taxed.
Amount of depreciation charges
The amount of depreciation charges is determined: with the linear method - based on the initial price or the current (replacement) price (in case of revaluation) of an object of fixed assets and the depreciation rate calculated based on the useful life of this object; using the declining balance method - based on the residual price of the fixed asset item at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this item and the acceleration factor established in accordance with the legislation of the Russian Federation; in the method of writing off the price based on the sum of the numbers of years of the useful life - based on the initial price or the current (replacement) price (in case of revaluation) of an object of fixed assets and the ratio, the numerator of which is the number of years remaining until the end of the useful life of the object, and in the denominator - the sum of the numbers of years of the useful life of the object.Depreciation funds
The accounting unit for fixed assets is an inventory object. The price of fixed assets is repaid through depreciation. In some cases, the price of fixed assets is not repaid using the depreciation method.Since 2006, subsequent objects have been excluded from the list of fixed assets for which depreciation is not accrued housing stock(residential buildings, dormitories, apartments and others), outdoor amenities and other similar objects (forestry, road construction, special navigation facilities, etc.), also productive livestock, buffaloes, oxen and deer and long-term plantings, not have reached operational age.
Depreciation of fixed assets is calculated using one of the following methods:
Linear method;
- reducing balance method;
- the method of writing off the price by the sum of the numbers of years of useful life;
With the linear method - based on the initial price or (current (replacement) price (in case of revaluation) of an object of fixed assets and the depreciation rate calculated based on the useful life of this object;
- using the reducing balance method - based on the residual price of the fixed asset item at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this item and a coefficient not higher than 3, established by the organization;
- with the method of writing off the price by the sum of the numbers of years of the useful life - based on the initial price or the current (replacement) price (in case of revaluation) of an object of fixed assets and the ratio, the numerator of which is the number of years remaining until the end of the useful life of the object, and in the denominator - the sum of the numbers of years of the useful life of the object;
Calculation of depreciation charges for fixed assets:
Starts from the 1st day of the month following the month of acceptance of this object for accounting, and is done before full repayment the price of this object or the write-off of this object from accounting;
- terminates on the 1st day of the month following the month of full repayment of the price of this object or write-off of this object from accounting;
- is done regardless of the organization’s performance in reporting period and is reflected in the accounting records of the reporting period to which it relates.
From January 1, 2006, for housing facilities that are included in profitable investments in tangible assets, depreciation is charged in accordance with the accepted procedure.
Small businesses can keep records with the implementation of:
1) working chart of accounts of small companies;
2) a simplified form of accounting - according to the usual form of accounting (without using accounting registers for the property of a small enterprise) and according to the form of accounting with the introduction of accounting registers for the property of a small enterprise.
The initial price of fixed assets in small enterprises is taken into account on account 01 “Fixed assets”, depreciation of fixed assets is taken into account on account 02 “Depreciation of fixed assets”.
Expenses associated with the construction or acquisition of fixed assets, before putting the objects into operation, are accumulated in account 08 “Investments in fixed assets» – the same way as it is carried out in organizations that are not classified as small businesses.
Depreciation charges for complete restoration of fixed assets are reflected in the accounts in amounts determined by annual calculation based on the accrual methods used by the small enterprise, depreciation rates approved in in the prescribed manner, and the initial (replacement) price of fixed assets. The application of the chosen method of calculating depreciation for an asset is carried out throughout its entire useful life.
Depreciation begins with the month following the month in which the fixed assets object was put into operation, and ends with the month following the month in which the object was written off. Let’s say that for objects put into operation from the 1st day of the current month, depreciation can be accrued for the first time exclusively in the next month.
The difference in the calculation of depreciation by small businesses lies solely in the fact that in small enterprises, only one account is used to account for production costs and sales expenses - 20 “Main production”. As follows, accrued depreciation of fixed assets, regardless of the type of activity in which they are used (main production, auxiliary production, management or other economic activities) is reflected in the debit of account 20 “Main production” and the credit of account 02 “Depreciation of fixed assets” . When calculating the annual depreciation rate, the law does not limit the right of small companies to choose any method of calculating depreciation.
If a small enterprise uses the linear method of calculating depreciation, then the legislation provides for the possibility of writing off additionally in the form of depreciation up to 50% of the initial price of a fixed asset with a service life of more than 3 years. This accounting scheme in relation to newly acquired or completed construction of fixed assets (put into operation after January 1, 2002) can only be applied for accounting purposes. For tax purposes, depreciation is calculated using the method indicated in the accounting policy for the purposes of tax accounting.
The current tax legislation does not provide for the use of increasing coefficients only for small businesses.
Small businesses are given the right to use accelerated depreciation of fixed assets with the attribution of costs to production costs in an amount twice as high as the norms established for the corresponding types of fixed assets.
Please note that since 2008, fixed assets with a price within the limit established in the organization’s accounting policy, but less than 20,000 rubles per unit, can be reflected in accounting and financial statements as part of inventories (clause 5 of PBU 6/01). In tax accounting, depreciable property is recognized as property with a useful life of more than 12 months and an initial price of more than 20,000 rubles (Clause 1 of Article 256 of the Tax Code of the Russian Federation), which allows the use of data created in the accounting system for tax purposes.
In this case, differences appear between accounting and tax accounting.
When forming the initial price in accounting, it should be taken into account that for profit tax purposes, the amount differences in the acquisition of fixed assets and interest on debt obligations of any type, including interest on investment credit and loan, are included in non-operating expenses(Clause 1 of Article 265 of the Tax Code of the Russian Federation). Payments for municipal registration of rights to immovable property are considered other expenses associated with the creation and implementation (subclause 40, clause 1, article 264 of the Tax Code of the Russian Federation).
When purchasing used fixed assets, you should find the useful life of the object in accounting. When accepting an object for accounting, the useful life is established by the organization based on the expected life of its operation, operating mode, natural criteria, regulatory and other restrictions (clause 20 of PBU 6/01).
The acquisition of fixed assets can be carried out in installments. A contract for the sale of a product on credit with a provision for payment in installments must contain significant terms of the purchase and sale contract, as well as the cost of the product, the procedure, terms, and amount of payments (clause 1 of Article 489 of the Civil Code of the Russian Federation).
Percentage per use commercial loan for the acquisition of fixed assets with the condition of payment in installments, they are included in accounting as part of other expenses. In accounting, they are accrued after the object is accepted for accounting.
Small enterprises using a simplified taxation system have the right to take into account expenses for the acquisition of fixed assets as expenses that reduce acquired income (subclause 1, clause 1, article 34616 of the Tax Code of the Russian Federation). The procedure for recognizing such expenses for tax purposes is established in clause 3 of Art. 34616 of the Tax Code of the Russian Federation and depends first on when the main assets were acquired: before the transition to a lightweight system or during the period of its implementation.
The price of fixed assets acquired during the implementation of the simplified tax system is included in expenses in full as they are paid for and put into operation.
The commissioning date is generally determined by the design date of the act of acceptance and transfer of fixed assets in Form No. OS-1. The price of the acquired fixed asset can be taken into account as expenses only after it has been paid in full.
If payment for a fixed asset is made in installments, then until it is fully paid, the costs of acquiring this fixed asset cannot be taken into account as expenses that reduce the base for one tax.
The cost of fixed assets purchased cannot be taken into account as part of expenses:
From the founders as a contribution to authorized capital;
- in the order of succession as a result of the merger of another organization.
In accordance with sub. 1 clause 1 and clause 3 art. 34616 of the Tax Code of the Russian Federation, the base for one tax is reduced by expenses for the acquisition of fixed assets. But if a small enterprise carries out the construction of fixed assets (both contracting and economic method), then the price of such (built) capital assets cannot be taken into account in expenses.
Interest on loans (credits) must be included in the initial price of fixed assets in an amount not exceeding the maximum amount calculated in accordance with Art. 269 of the Tax Code of the Russian Federation (clause 2 of Article 34616 of the Tax Code of the Russian Federation). The composition and assessment of fixed assets for determining the costs of their acquisition, taken into account for the purposes of calculating one tax, are determined by small enterprises in accordance with PBU 6/01.
The initial price of fixed assets acquired for a fee is the amount of the organization's actual costs for acquisition, construction and production, excluding VAT and other refundable taxes. In the case of the acquisition of a real estate property related to fixed assets, an organization applying a simplified taxation system has the right to include in the initial price of this property a fee for municipal registration of rights to it.
Issues related to the procedure for forming the initial price of fixed assets and the systematization of expenses made are of fundamental importance for the purposes of forming the tax base in two cases:
1) when selling (transferring) fixed assets before the expiration of the established clause 3 of Art. 34616 Tax Code of the Russian Federation term (3 years or 10 years depending on the useful life of the object);
2) when switching to a general taxation regime and calculating the residual price of fixed assets, in accordance with clause 3 of Art. 34625 Tax Code of the Russian Federation.
VAT amounts paid by a small enterprise when purchasing fixed assets should be included in their initial price and considered as expenses for the acquisition of fixed assets.
In ch. 262 of the Tax Code of the Russian Federation introduced changes, and now, when calculating the tax base, expenses for the construction and manufacture of fixed assets can be taken into account in the following order:
Expenses are taken into account if payment for construction, production of fixed assets, their commissioning and submission of documents for municipal registration of rights to them were made after January 1, 2006 (subclause 1, clause 3, article 34615 of the NKRF);
- taxpayers' expenses incurred before the transition to a simplified taxation system are taken into account. In the event that full payment, construction, production of fixed assets, as well as their commissioning, and submission of documents for municipal registration of rights to these fixed assets, were made before January 1, 2006 (subclause 3, clause 3, article 34616 and subparagraph 1, paragraph 21, article 34625 of the Tax Code of the Russian Federation).
Before 2006, small businesses had to be managed current edition clause 3 art. 34625 of the Tax Code of the Russian Federation, and specifically:
Calculate the depreciation amounts for the period of implementation of the simplified tax system for the fixed assets registered with them as if they were a payer of income tax (in other words, in accordance with the rules of Chapter 25 of the Tax Code of the Russian Federation);
- find the residual price of such fixed assets and reflect it in tax accounting on the date of transition;
- compare the calculated depreciation amounts with the amounts of expenses for the acquisition of fixed assets that were included in expenses during the implementation of the simplified taxation system in accordance with the rules of Chapter. 262 Tax Code of the Russian Federation;
- if the amounts of recorded expenses for fixed assets were greater than the calculated depreciation amounts, then such a difference was included in income already under the general taxation regime.
According to latest edition clause 3 art. 34625 of the Tax Code of the Russian Federation, this is no longer required.
For fixed assets received during the implementation of the simplified taxation system, the price of which is allowed to be written off as expenses immediately, no recalculations are made. Such fixed assets in tax accounting when calculating income tax will have a zero price.
Fixed assets are included in expenses at the residual price, while the costs of installing and commissioning fixed assets are deducted from this price.
According to paragraph 3 of Art. 34616 of the Tax Code of the Russian Federation, the write-off procedure depends on the service life of fixed assets:
In relation to fixed assets with a useful life of up to 3 years inclusive - during the 1st year of introducing a simplified taxation system;
- in relation to fixed assets with a useful life from 3 to 15 years inclusive: during the first year of implementation of the lightweight taxation system - 50% of the price, the second year - 30% of the price and the third year - 20% of the price;
- in relation to fixed assets with a useful life of more than 15 years - within 10 years of introducing a simplified taxation system in equal shares of the price of fixed assets.
With all this, during the tax period, expenses are accepted for reporting periods in equal shares.
Example: An organization provides copying services. On January 1, 2013, she switched to the simplified tax system. As of January 1, 2013, the organization has blueprinting equipment on its balance sheet (3rd depreciation group); the initial price of the object is 100,000 rubles, the useful life is 5 years, the actual service life is 1 year. The residual price is 80,000 rubles. During 2013, 40,000 rubles should be written off. (50% of the price) in equal quarterly installments (RUB 10,000 each); during 2014 – 24,000 rub. (30%) for 6000 rub. quarterly; during 2015 – 16,000 rubles. (20%) for 4000 rub. quarterly.
The residual price is determined as the difference between the residual price determined at the time of the transition to a lightweight taxation system and the amount that was included in expenses when applying this tax regime. In other words, organizations take into account the residual price of a fixed asset, calculated according to tax accounting rules. Or rather, not by the residual price, but by the amount of the difference between the acquisition price and tax depreciation.
To accept expenses for a fixed asset, you need to find its residual price and, accordingly, its share, which can be attributed to the light taxation system. To do this, you need to separate out from the income from sales, for the organization as a whole, its share attributable to the activities taxed for a given tax regime. The price of fixed assets is included in expenses in equal parts in each reporting period during the tax period. Reporting periods for the purposes of the simplified taxation system are the 1st quarter, half a year and 9 months (clause 2 of Article 34619 of the Tax Code of the Russian Federation), and the tax period for one price added tax is a quarter (Article 34630 of the Tax Code of the Russian Federation). As follows, to determine the amount of the price of a fixed asset that reduces the tax base under the simplified taxation system, the indicator of sales income acquired for the next quarter will be used.
Example:The organization carries out two types of activities: retail trade and creation. Retail in this region, it was transferred to the payment of one tax for the imputed period, and for production activities the organization has been applying a simplified taxation system since January 1, 2013. Income reduced by the amount of expenses was chosen as the object of taxation. The organization has a safe with a useful life of 21 years, which was put into operation on January 1, 2013. The residual price of the safe as of January 1, 2013 is 30,000 rubles, the remaining useful life is 20 years.
For 2013, the organization received income from sales in the amount of: I quarter - UTII - 300,000 rubles, simplified tax system - 600,000 rubles;
II quarter – UTII – 400,000 rubles, simplified tax system – 650,000 rubles;
I quarter II – UTII – 350,000 rubles, simplified tax system – 590,000 rubles;
IV quarter – UTII – 450,000 rubles, simplified tax system – 620,000 rubles.For fixed assets with a useful life of more than 15 years, the price of fixed assets is written off over 10 years in equal shares. Thus, the organization can write off this fixed asset until 2022. With all this, the annual write-off amount will be 3,000 rubles. (RUB 30,000: 10 years), and quarterly amounts – RUB 750. (RUR 3,000: 4).
In order to find what share of the residual price an organization can include quarterly as expenses for the purposes of a light tax system, you need to find the share of income acquired from activities transferred to a light tax system in the income of the organization as a whole:
Q1 2013 – 66.67% (600,000: 900,000 x 100%);
Q2 2013 – 61.91% (650,000: 1,050,000 x 100%);
III quarter 2013 – 62.77% (590,000: 940,000 x 100%);
IV quarter 2013 – 57.94% (620,000: 1,070,000 x 100%).I quarter 2013 – 500.02 rubles. (RUB 750 x 66.67%);
Q2 2013 – RUB 464.33. (RUB 750 x 61.91%);
III quarter 2013 – 470.78 rub. (RUB 750 x 62.77%);
IV quarter 2013 – 434.55 rubles. (RUB 750 x 57.94%).Using the same principle, the organization will reduce the tax base under the simplified tax system over the next 9 years.
When an organization (businessman) switches to a simplified taxation system or pays UTII amount VAT accepted for deduction on goods (works, services), including fixed assets, according to the rules of Chapter. 21 of the Tax Code of the Russian Federation, are subject to restoration in tax period, the previous transition to the designated modes.
If an organization has switched to a simplified taxation system by paying one tax on imputed income, then the residual price of fixed assets will need to be determined according to accounting rules. Only objects that are recognized as depreciable property in accordance with Ch. 25 Tax Code of the Russian Federation.
Tax base can be reduced by the price of fixed assets at the time of their commissioning (subclause 1, clause 3, article 34616 of the Tax Code of the Russian Federation). Installation and other work related to the commissioning of fixed assets can be included in expenses (subclauses 1 and 2 of clause 1 of Article 34616 of the Tax Code of the Russian Federation).
The initial price of a fixed asset is determined as the amount of expenses for its acquisition (if the fixed asset was received by the taxpayer free of charge - as the amount at which such property is valued in accordance with clause 8 of Article 250 of the Tax Code of the Russian Federation.
Example:Let's use the data from the previous example. An organization that applies two taxation systems at once - simplified tax system and UTII - received a laptop on August 10, 2008. Its price is 47,200 rubles. 100% paid. The laptop delivery price was 944 rubles. The laptop was put into operation on August 15, 2008. The costs of delivering the laptop will be included in the cost of the simplified tax system. As follows, not only the amount paid for the laptop will be used, but also the amount spent on its delivery. Based on the criterion of the previous example, the share of income from sales from entrepreneurial activity, transferred to a simplified taxation system, amounted to 62.77%. Thus, in the third quarter of 2008, the organization can include in expenses an amount equal to 30,219.99 rubles. [(RUB 47,200 + 944) x 62.77%)].
The movement of fixed assets, together with their receipt and disposal, is one of the most common groups of business transactions.
The movement of fixed assets within an organization means the transfer of objects from one structural unit (workshop, department, section, etc.) to another. To design operations for the internal movement of fixed assets, the unified form No. OS-2 “Invoice for the internal movement of fixed assets” is used. The invoice is issued by the transferring party (deliver) in 3 copies, signed by the responsible persons structural divisions recipient and deliverer. The 1st copy is transferred to the accounting department, the 2nd copy remains with the person responsible for the safety of the donor’s fixed assets, the 3rd copy is transferred to the recipient. Data on the movement of fixed assets objects is entered into the inventory card (book) for recording fixed assets objects (forms No. OS-6, No. OS-6a, No. OS-6b). In analytical accounting, a change in the materially responsible person is documented.
Example:The truck was transferred from the unit providing the main activity (transportation of materials) to the unit involved in the storage and sale of finished products (for transporting products from the supplier’s warehouse to the departure station). The amounts of accrued depreciation will be written off from the credit of account 02 “Depreciation of fixed assets” to the debit of account 44 “Sales expenses”, and not account 25 “General production expenses” - as was the case before the transfer. If the transfer of a fixed asset was carried out during the reporting month, the question of dispersing accrued depreciation between types of activities is unlawful.
Another case of moving fixed assets is their transfer for restoration, which is understood as a set of works including reconstruction, modernization, retrofitting and repairs (major and routine). In all cases, not counting repairs, upon completion of the work the initial price can be increased and, as follows, the depreciation rate increases. Upon completion of the completion of construction, additional equipment, reconstruction, modernization of a fixed asset object, the costs recorded in the account for investments in non-current assets either increase the initial price of this fixed asset object and are written off as a debit to the fixed asset account, or are recorded separately in the fixed asset account, and in this case, a separate inventory card is disclosed for the amount of expenses incurred.
In accordance with paragraph 2 of Art. 257 Tax Code of the Russian Federation:
Work on completion, additional equipment, modernization includes work caused by the configuration of the technological or service purpose of equipment, structure, structure or other object of depreciable fixed assets, increased loads or other new properties;
- reconstruction - reconstruction of existing fixed assets, associated with the improvement of production and an increase in its technical and economic characteristics and carried out under the project for the reconstruction of fixed assets in order to increase production capacity, improve the properties and configuration of the product range;
- technical re-equipment - a set of measures to increase the technical and economic characteristics of fixed assets or their individual parts based on the introduction of advanced equipment and technology, mechanization and automation of production, modernization and replacement of obsolete and physically worn-out equipment with new, more productive ones.
In accounting, the process of implementing reconstruction, modernization and completion is reflected in the following entries:
Credit to accounts for recording production costs or calculations (if restoration is carried out by contract method - by third-party organizations) - for the amount of practically incurred costs;
K-t sch. 08 “Investments in non-current assets” - by the amount of the increase in the price of fixed assets.
In accounting, the retrofitting process is carried out according to a different scheme. It is understood that the equipment was purchased in advance and accounted for on account 07 “Equipment for installation”, and its installation is associated with the dismantling of previously operating equipment:
Dt sch. 08 “Investments in non-current assets”
Set of accounts accounting for production costs or calculations - for the amount of costs for dismantling previously operating equipment;
Dt sch. 10 "Materials"
K-t sch. 91 “Other income and expenses”, subaccount “Other income” – for the amount of the price of spare parts (subaccount “Spare parts” to account 10 “Materials”) or scrap metal and other waste (subaccount “Other materials” to the materials account) – for the amount prices of materials and waste from dismantling that are subject to future use or sale;
Dt sch. 08 “Investments in non-current assets”
Dt sch. 08 “Investments in non-current assets”, credit to accounts for production costs or calculations - for the amount of price installation work and additional costs associated with putting installed equipment into operation;
Dt sch. 08 “Investments in non-current assets”
K-t sch. 08 “Investments in non-current assets” - for the amount of completed costs for additional equipment of a fixed assets facility, including the price of equipment.
With all this, the price of a retrofitted facility may increase, or it may be created new object(unit of equipment) fixed assets.
To design and record the acceptance and delivery of fixed assets from repair, reconstruction, modernization, an act on the acceptance and delivery of repaired, reconstructed, modernized fixed assets is drawn up (form No. OS-3).
The act must be signed by members of the acceptance committee or a person authorized to accept fixed assets. Data on repairs, reconstruction, and modernization are entered into the inventory card for recording the fixed assets facility (Form No. OS-6).
If the restoration of fixed assets lasts longer than 12 months, depreciation is suspended. Depreciation accrual is resumed from the month following the month of design of the act of form No. OS-3.
The transfer of fixed assets as a contribution to the authorized capital of other organizations can be called a transfer conditionally.
For the arising debt on the contribution to the authorized (share) capital, unit trust an entry is made in the debit of the cash investment account in correspondence with the credit of the settlement account for the amount of the residual price of the fixed asset object transferred as a contribution to the authorized (share) capital, mutual fund, and in the case of full repayment of the price of such an object - in the conditional valuation, accepted by the organization, with the assessment amount assigned to monetary results.
The following accounting entry scheme is used:
Dt sch. 01, subaccount “Disposal of fixed assets”
K-t sch. 01 (for subaccounts) – for the amount of the initial or replacement price of transferred fixed assets;
Dt sch. 02 “Depreciation of fixed assets”
K-t sch. 01, subaccount “Disposal of fixed assets” - for the amount of accrued depreciation on transferred objects;
Dt sch. 58 " Financial investments", sub-account "Units and shares"
K-t sch. 76 “Settlements with various debtors and creditors”
Dt sch. 76 “Settlements with various debtors and creditors”
K-t sch. 01, subaccount “Disposal of fixed assets” - for the amount of the residual price of the transferred objects.
The criteria for an ordinary friendship contract may provide for the return of fixed assets to the previous owner (in the appropriate material form) upon expiration of the contract.
When returning, the amount of the price of the returned object is previously credited to the debit of account 08 in correspondence with the credit of account 76, and then written off from the credit of account 08 “Investments in non-current assets” to the debit of account 01 “Fixed assets”. The residual price of the returned object is usually lower than the price at which the object was transferred. The exception is cases of revaluation and reflection of its results in the accounting records of a participant conducting general business.
When transferring fixed assets from a branch or consulate of the parent organization or vice versa, also when transferring under a contract trust management their price is not included in the balance sheet of the transferring party. An entry is made to the debit of account 79 “Intra-business settlements” and the credit of account 01 “Fixed assets”. Turnovers and balances on account 79 are not taken into account when preparing financial statements, because they are offset by arithmetic line-by-line addition of the balance sheet data of branches or representative offices and the parent organization. When carrying out activities under a property trust management agreement, the data on the balance sheets of the trustee and the management trustee are summarized.
Another type of conditional movement of fixed assets is the transfer of equipment to the installation.
Scheme accounting entries in this case it will be the following (entries related to taxation are not given):
Dt sch. 07 “Equipment for installation”
K-t sch. 60 “Settlements with suppliers and contractors” – for the amount of the contract price of equipment;
Dt sch. 08 “Investments in non-current assets”
K-t sch. 07 “Equipment for installation” – for the amount of the price of equipment transferred to the installation;
Dt sch. 08 “Investments in non-current assets”
Set of accounts for recording production costs (if installation is done using the economic method) or calculations (if outside organizations are involved in installation work) - for the amount of the price of installation work and other additional costs;
Dt sch. 01 "Fixed assets"
K-t sch. 08 “Investments in non-current assets” - in the amount of the initial price of equipment (generated on account 08) put into operation.
The transfer of equipment to the installation is formalized unified form No. OS-15 “Act on acceptance and transfer of equipment for installation.” After all costs have been incurred, the equipment - already as an object of fixed assets - is put into operation with the execution of an act in form No. OS-1.
To include a fixed asset in one or another depreciation group, taxpayers are guided by the Systematization of fixed assets included in depreciation groups, approved by Decree of the Government of the Russian Federation of January 1, 2002 No. 1. In all this, it should be understood that the assignment of property to one or another group is tied to codes OKOF – All-Russian classifier fixed assets (OK 013-94).
Small enterprises that carry out a small number of business transactions (less than 30 per month) and do not carry out production of products and work associated with large expenditures of material resources, can keep records of all operations by registering them exclusively in the Book (journal) of accounting facts of economic activity. With all this, the Book reflects only the facts of acquisition (or other receipt of fixed assets) and the amount of accrued depreciation. The designated conventional form of accounting does not oblige organizations to maintain analytical accounting of fixed assets (the Book itself is a register of analytical and synthetic accounting, on the basis of which you can find the availability of property and money, as well as their sources, in a small enterprise on a certain date and compile financial statements). However, in order to provide information about the condition of fixed assets and the amounts of accrued depreciation, it is advisable to maintain an additional register analytical accounting(for example, form No. OS-6).
Small businesses that use an accounting form with the introduction of accounting registers for the property of a small enterprise, operations related to the acquisition, movement and disposal of fixed assets, as well as the calculation of depreciation, are reflected in the “Statement of accounting of fixed assets, accrued depreciation” (form No. IN 1).
Statement in form No. B-1 is a register of analytical and synthetic accounting of the presence and movement of fixed assets (account 01 “Fixed assets”), as well as the calculation of depreciation amounts (account 02 “Depreciation of fixed assets”).
Data on fixed assets is recorded in statements using the positional method for each object separately.
Every month, if there is movement of fixed assets, the amounts of their turnover are calculated, and the balance of fixed assets is displayed on the 1st day of the month following the reporting month.
The movement of fixed assets within a small enterprise is not reflected in the statement. To control the amounts of accrued depreciation in an accelerated manner and from the beginning of operation of fixed assets for all fixed assets, the statement provides appropriate columns for recording depreciation on an accrual basis. For objects received after January 1, 2002, depreciation can be calculated using the accelerated method only for accounting purposes.
These statements on the amounts of accrued depreciation charges are used to reflect operations on their movement in statements on forms No. B-3 and B-4.
If a small enterprise has a significant number of fixed assets, it can keep records of them with the implementation primary form No. OS-6 “Inventory card for accounting of fixed assets.” Based on the final data of the cards for recording the movement of fixed assets (OS-8), a consolidated accounting of the movement of fixed assets is kept under account 01 “Fixed Assets” in the statement in form No. B-1.
Annual depreciation charges
Depreciation charges are a sustainable source of cash resources. Depreciation charges are formed as a result of the transfer of the price of fixed assets to the price of the product and together constitute the depreciation fund. The calculation of depreciation deductions is made on the basis of the Regulations on the procedure for calculating depreciation deductions for fixed assets in the national economy, approved by a number of departments of the USSR on December 29, 1990, and the Unified norms of depreciation deductions for the complete restoration of fixed assets National economy USSR, approved by Resolution of the Council of Ministers of the USSR dated October 22, 1990 No. 1072. Depreciation deductions are carried out only until the balance price of funds is completely transferred to the cost of products (works, services) and costs of application. Depreciation charges can be calculated straight-line or accelerated. In the Russian Federation, a predominantly uniform method of calculating depreciation is used.Depreciation of fixed assets is accrued: for all groups of fixed assets, including construction in progress or construction projects not formalized with acceptance certificates, which are in operation by companies to which these objects will be transferred; for serious costs of land improvement not associated with the creation of structures; for equipment and vehicles that are in stock, reserve, warehouse and listed on the balance sheet of an economic entity. Depreciation (wear and tear) is not accrued for: land plots, productive livestock, buffaloes, deer; library funds; funds transferred in accordance with the established procedure for conservation; funds of thrifty organizations; urban improvement structures subordinate to local authorities and public roads.
With the straight-line method, depreciation is calculated according to uniform depreciation rates established as a percentage of the initial price of fixed assets. Depreciation rates can be adjusted depending on deviations from the standard criteria for the use of fixed assets. The values of these coefficients are given in collections of depreciation standards. For rolling stock of vehicles (cars, trucks, buses), depreciation rates are set as a percentage of the initial price per thousand kilometers.
By Resolution of the Council of Ministers of the RSFSR dated July 18, 1991 No. 406 “On measures to support and develop small companies in the RSFSR”, small companies were given the right to write off in the first year of operation (i.e., attributable to the cost of production with a suitable reduction in the tax base) in in the form of depreciation charges up to 50% of the initial price of fixed assets with a service life of more than 3 years. Small companies are also allowed to create accelerated depreciation of the active part of production assets. At accelerated depreciation its norm doubles. Some restrictions on the use of accelerated depreciation are given in the Regulations on the procedure for calculating depreciation charges on fixed assets in the national economy, approved by a number of departments of the USSR on December 29, 1990. Namely, it is indicated that the accelerated method of calculating depreciation of an enterprise can be applied to those fixed assets that are used to increase the production of computer technology, new advanced types of materials, devices and equipment, etc.
In countries with developed market economy accrual of accelerated depreciation is done using the decreasing balance method of the book value of fixed assets or using the sum of numbers method (degressive depreciation method). Depreciation charges using the declining balance method are determined using a fixed (constant) percentage of the residual price of fixed assets. With all this, the depreciation rate is twice as high as the depreciation rate using the uniform method. If the annual depreciation deductions calculated using the declining balance method are taken one by one to the initial price of the means of labor, then the depreciation rates acquired in this way are distributed according to a certain regressive scale.
Annual depreciation charges using this method continuously decrease throughout the service life. As a result, they do not completely compensate for the depreciable price of fixed assets. Therefore, from time to time a combination of the decreasing balance method and the uniform method is used. The transition to a uniform method of depreciation occurs in the 2nd half of the service life of fixed assets. This allows the original price to be 100% depreciated.
The sum of numbers method is also characterized by a constant decrease in annual depreciation charges from the initial, quite high level, but unlike the declining balance method, it ensures full compensation of the book value of fixed assets. The annual depreciation rate using this method is determined by dividing the number of years remaining before the expiration of the service life of fixed assets by the sum of numbers from one to a number equal to the total established duration of use of this type of fixed assets.
This method is more difficult than the declining balance method. But it ensures full reimbursement of the price of fixed assets.
Accelerated depreciation allows you to deduct up to 2-thirds of their price to the depreciation fund in the first half of the service life of fixed assets. Accelerated accrual of the depreciation fund is a guarantee against losses from obsolescence of fixed assets caused by incomplete reimbursement of their price. The residual price of fixed assets with accelerated depreciation methods will be less in any year than its value with the uniform method of deductions.
The difference in the residual price of fixed assets using the uniform depreciation method compared with its value using accelerated methods will increase in the first half of their service life and then decrease. In case of replacement of fixed assets due to obsolescence before completion deadline Their service methods of accelerated depreciation provide a reduction in losses due to under-reimbursement of price to a greater extent than the uniform method of depreciation. Depreciation of intangible assets is accrued every month according to depreciation rates to the initial price of intangible assets.
Calculation of depreciation charges
Depreciation is one of the most controversial issues in accounting and management accounting. The point is that it is reliable to find out to what extent the main assets of the enterprise lose their value in the process production cycle unrealistic, therefore, to calculate it, they resort to constructing lightweight models. Meanwhile, depreciation, although it is just the fruit of mathematical calculations, has a significant impact on the profit of the enterprise, and therefore on its payment of taxes. That is why the calculation of depreciation plays such a fundamental role in management and accounting.The calculation of depreciation charges, in almost everything, depends on the selected service life of the equipment. Despite the fact that there are certain standards, it is impossible to accurately predict when equipment will need to be replaced due to moral or physical wear and tear. Therefore, a certain average, very impartial value is chosen as the service life. Even more difficult is determining the residual price, that is, the price of the equipment at the end of its expected service life. It is impossible to accurately determine the condition of equipment ten years from now, and the situation on the market is completely unpredictable. Therefore, the residual price is determined practically “approximately”.
In the future, the calculation of depreciation charges is made on the basis of the data discussed above. The residual price is subtracted from the original price of the equipment, and the resulting amount is written off as enterprise expenses over the entire calculated service life. Depreciation can be written off using different methods, and in almost all cases, companies have the right to independently choose the method that is more suitable for them. Currently, depreciation charges are calculated using 4 main methods: linear or one of the group of nonlinear ones.
The linear method implies a uniform write-off of the price of equipment. This method is considered lightweight and is suitable for accounting for ordinary equipment and ordinary situations that do not involve leasing, rental, etc. The total price to be written off is divided by the service life, and the purchased amount is charged to the appropriate expense item each year.
The introduction of accelerated depreciation methods is based on the fact that at first, equipment loses more of its own value than in the final steps, therefore, in order to correctly reflect the price on the balance sheet, it is necessary to reflect this trend when writing off depreciation as expenses. A more popular nonlinear method is the reducing balance method. Calculating depreciation charges using this method implies the inclusion in the calculations not of the entire price of the equipment, but of the balance, which is reflected on the balance sheet for the current year. In other words, from year to year the balance will decrease, and, as follows, the depreciation charges themselves.
There is also a fairly rarely used method for calculating depreciation based on output. First, a certain limit is set on the production output of the equipment, and then a fraction equal to the share of the output produced to the established limit is subtracted from its price.
Regardless of the chosen method, depreciation charges remain within the enterprise itself, therefore the introduction of depreciation charges is a rather fundamental issue. Logically, they should be used to purchase new equipment. And although many managers, indeed, perceive depreciation as a source of investment, it can also be used to pay labor, purchase raw materials, etc. One way or another, it is necessary to choose the best solution for the company, because an effective approach to solving the depreciation issue is the key to the company's long-term prosperity.
Find depreciation charges
When returning from a simplified taxation system to general organizations It will be necessary to indicate in the accounting records the price of acquired fixed assets. But not the full amount, but minus the amounts of depreciation charges. Therefore, when working under a simplified taxation system, it is necessary to calculate depreciation every month. Depreciation is charged on property whose price exceeds 10,000 rubles and whose useful life is more than one year. With all this, the price of a fixed asset is determined as follows: the sum of all expenses for its acquisition, delivery and bringing it to a state usable for use, except for value added tax and other refundable taxes. This price is called the initial price.ExampleIn March 2013, CJSC Parus operated under a simplified taxation system. It received a photocopier for 11,800 rubles. (including VAT - 1800 rubles). CJSC Parus paid another 354 rubles for the delivery of the photocopier. (including VAT - 54 rubles). Let's determine the initial price of the copier:
11,800 rub. – 1800 rub. + 354 rub. – 54 rub. = 10,354 rub.
10354 rub. > 10,000 rub.
Depreciation on the copier must be calculated.
Tips for an accountant
If the main activity of the enterprise is the provision of transport services or transport is used specifically in the production of products (works, services), then the tax must be taken into account on account 20 “Main production”. If transport is used in auxiliary production, then the tax is taken into account in account 23 “Auxiliary production”. If transport is needed for service industries and farms, then the tax must be taken into account in account 29 “ Service industries and farms." IN trade organizations tax is charged to account 44 “Sales expenses”.
In the example we showed how to find the original price of a fixed asset. But in order to calculate depreciation, it is also necessary to find the useful life. To do this, you need to refer to the Systematization of fixed assets included in depreciation groups (it is given in the “Reference Data” section). In this document, all fixed assets are divided into 10 depreciation groups. For each group, a useful life interval is established. For example, office furniture belongs to the fourth depreciation group. Its useful life can range from 5 years 1 month to 7 years inclusive. The organization chooses a certain period within this interval without the help of others.
ExampleIn February 2013, Mikron CJSC received a VAZ-2106 passenger car for 180,000 rubles. (including VAT - 27,458 rubles). According to Systematization, this car belongs to the third depreciation group. Its useful life can range from 3 years 1 month to 5 years inclusive. ZAO Mikron decided that the service life of this vehicle would be four years for both tax and accounting purposes.
Now, knowing the useful life and the original price of the fixed asset, you can calculate the amount of its monthly depreciation.
This can be done using various methods.
An organization can use one of two methods of depreciation of fixed assets - linear or non-linear. This is established by paragraph 1 of Article 259 of the Tax Code of the Russian Federation.
In both cases, depreciation is calculated from the 1st day of the month following the month when the fixed asset was put into operation.
The depreciation rate, in turn, is calculated using the formula:
K = (1: n) x 100%,
where K is the monthly depreciation rate as a percentage; n is the useful life of the fixed asset in months.
ExampleIn February 2013, ZAO Spetsmash received the machine. The starting price of the machine is 135,000 rubles. (without VAT).
Systematization classifies this machine as the fifth depreciation group. Its useful life can range from 7 years 1 month to 10 years inclusive. The organization has determined that the machine will be used for 8 years (96 months). Since March 2006, depreciation began to be charged on it.
The monthly depreciation rate will be 1.04 percent ((1: 96 months) x 100%). Thus, every month depreciation equal to 1,404 rubles will be charged on the machine. (RUB 135,000 x 1.04%).
Nonlinear method
For tax purposes, depreciation can also be calculated in a non-linear way. To do this, the residual price of the fixed asset at the beginning of the month is multiplied by its depreciation rate. And in the first month of operation of a fixed asset, depreciation is calculated from its initial price.
The monthly depreciation rate is calculated using the formula:
K = (2: n) x 100%,
where K is the depreciation rate as a percentage; n is the useful life of the fixed asset in months.
The nonlinear method allows for faster depreciation of fixed assets. After all, the amount of depreciation in this case directly depends on the size of the residual price of the fixed asset. But pay attention: after the residual price of a fixed asset becomes equal to 20 percent of its initial price, the procedure for calculating depreciation should change. In the next month, this residual price is taken as the base amount, and depreciation from it is calculated in equal shares (as with the linear method). This is stated in paragraph 5 of Article 259 of the Tax Code of the Russian Federation.
ExampleIn January 2013, Pride LLC received a computer worth 47,200 rubles. (including VAT - 7200 rubles) and put it into operation in the same month.
Systematization classifies computers into the third depreciation group. Their useful life can range from 3 years 1 month to 5 years inclusive. The organization has determined that the computer will have a lifespan of three and a half years (42 months).
Depreciation of the computer must be calculated from February 2013. Its depreciation rate will be 4.76 percent ((2: 42 months) x 100%). In February, depreciation will be charged - 1904 rubles. (RUB 40,000 x 4.76%), and in March – RUB 1,813. ((RUB 40,000 – RUB 1,904) x 4.76%). So depreciation will need to be charged until the residual price of the computer drops to 8,000 rubles. (RUB 40,000 x 20%).
In October 2014, the residual price of the computer will be 7,960 rubles. Therefore, from November 2014 until the end of its useful life (until June 2015 inclusive, in other words, within 8 months), depreciation will need to be charged in the amount of 995 rubles. (RUB 7,960: 8 months).
Tips for an accountant
The nonlinear method of calculating depreciation (unlike the linear one) cannot be used in accounting. Therefore, if you keep accounting records, it is easier to use the straight-line method of calculating depreciation.
Depreciation charges for fixed assets
Depreciation is the process of gradually transferring the price of fixed assets to manufactured products (work, services).Why is this necessary: there are several points of view on the economic meaning of depreciation. Some experts believe that with the help of the depreciation mechanism, cash flows are created, which in the future will be focused on the reproduction of fixed assets, others consider depreciation as a method of “spreading” large-scale expenses over periods, according to the accrual principle.
Example: A company operates, spends funds on production, produces products, and sells them. After the product is released, its cost is formed, the amount of desired profit is added to the cost, and as a result, value appears. Costs for fixed assets must be included in the cost of production on an equal basis, since if all costs are written off at once, product prices will increase significantly and become uncompetitive.
The amount of depreciation is determined every month, separately for each item of depreciable property, that is, for those fixed assets that are subject to depreciation.
The annual amount of depreciation charges is determined:
With the linear method - based on the initial price or (current (replacement) price (in case of revaluation) of an object of fixed assets and the depreciation rate calculated based on the useful life of this object;
During the reporting year, depreciation charges for fixed assets are accrued every month, regardless of the accrual method used, in the amount of 1/12 of the annual amount.
For fixed assets used in organizations with a seasonal nature of production, the annual amount of depreciation charges for fixed assets is accrued moderately during the period of operation of the organization in the reporting year.
With the method of writing off prices in proportion to the volume of production (work), depreciation charges are calculated based on the natural indicator of the volume of production (work) in the reporting period and the ratio of the initial price of the fixed asset object and the estimated volume of production (work) for the entire useful life of the fixed asset object.
Depreciation is not charged for:
Objects of fixed assets whose consumer characteristics do not change over time ( land plots; environmental management facilities; objects classified as museum items and museum collections, etc.).
- housing facilities (if they are not used to generate income).
- outdoor improvement objects and others similar objects road facilities.
- productive livestock.
- long-term plantings that have not reached operational age.
- objects of fixed assets used to implement the legislation of the Russian Federation on mobilization preparation and mobilization, which are mothballed and not used in the production of products, when performing work or providing services, for the management needs of the organization or for provision for a fee for temporary possession and use or for temporary use .
Accrual of depreciation begins on the 1st day of the month following the month in which this object was put into operation, and stops on the 1st day of the month following the month when the price of the object was completely written off or when this object was removed from the depreciable property.
Depreciation is calculated over the entire useful life of the fixed asset.
The useful life is the period during which the implementation of an item of fixed assets brings economic benefits (income) to the organization. The organization establishes its useful life independently when accepting an object of fixed assets for accounting.
In cases of reconstruction, modernization or technical re-equipment, the useful life is revised.
For accounting purposes, the period is determined based on the expected useful life of the object and expected physical wear and tear, regulatory and other restrictions on the use of the object.
In tax accounting, the useful life is determined in accordance with the number of the depreciation group to which the object belongs. The indicated systematization can also be applied for accounting purposes.
If the systematization does not indicate the useful life of an object, it must be established independently, based on:
The expected period of use of the object, taking into account the intensity of its implementation;
- expected physical wear and tear, depending on the operating mode (number of shifts), natural criteria and exposure to a brutal environment, all types of repairs.
Depreciation is calculated using one of the methods (methods) presented in the table:
The chosen method of calculating depreciation is fixed in the accounting policy for accounting and tax purposes.
The accrual of depreciation charges is suspended in the event that an object is transferred by decision of the managing organization to conservation for a period of more than 3 months, also during the period of reconstruction, modernization and half-term repair of the object, lasting more than 12 months.
By fixed assets non-profit organizations Also, the housing stock of housing and communal services companies is subject to depreciation at the end of the reporting year according to established depreciation rates. The movement of depreciation amounts on designated objects is accounted for in a separate off-balance sheet account 010 “Depreciation of fixed assets.”
Depreciation is written off when a fixed asset is disposed of. Depreciation amounts are recorded on account 02 “Depreciation of fixed assets”.
Correspondence of accounts for depreciation accounting:
Depreciation methods
Methods of depreciation: linear, accelerated cumulative, decreasing balance method, method proportional to production volume. These are ways to know this moment very distressing. If in Russian times they sat relaxed and used one linear method. At the moment, the implementation of the depreciation method determines the outcome of the enterprise’s activities, and therefore the amount of taxes due for payment to the budget.1. Straight-line accrual method: Depreciation costs are distributed moderately over the entire service life of the fixed asset. Depreciation costs per year are calculated as follows:
For example: An enterprise received equipment at a cost of 20,000, the commission determined the expected liquidation price in the amount of 2,000, the service life of the equipment was technical documentation determined at 10 years.
Starting price - liquidation price
Life time
Let's calculate using this formula: (20000-2000)/10 years = 1800 per year and, accordingly, the monthly depreciation amount will be 1800/12 months. = 150.
The method of uniform straight-line price write-off is used when it is assumed that income from the use of fixed assets is similar in each period during its service life.
2. Method of accelerated depreciation: In the first years of use, a fixed asset brings more benefits and utility than in recent years. Accordingly, wear and tear costs should be higher in the first years of useful life and lower in the last years. This method is called the sum of years or cumulative method. This method is determined by the sum of years of service life of an object, which is the denominator in the calculation. The numerator contains the number of years remaining until the end of the object’s service life (in reverse order).
Eg:Service life truck 5 years. The price is 10,000, the estimated liquidation price is 1000. The sum of the numbers, i.e., years of operation, will be 15 (cumulative number).
1+2+3+4+5 =15 Formula for finding the cumulative number: S=N x(N+1)/2.
where: S - sum of numbers; N - useful life.
Then, by multiplying each fraction by the wear price equal to 9000 (10000-1000), we determine the annual wear amount: 5/15; 4/15; 3/15; 2/15; 1/15.
That is, 1-year: initial price 10,000 Annual depreciation amount 5/15 x 9,000 = 3000
2-year: starting price 10.000 Annual depreciation amount 4/15 x 9.000 = 2400
3-year: starting price 10,000 Annual depreciation amount 3/15 x 9.000 = 1800
4-year: starting price 10,000 Annual depreciation amount 2/15 x 9.000 = 1200
5-year: starting price 10,000 Annual depreciation amount 1/15 x 9.000 = 600
With this method, the largest amount of depreciation is accrued in the first year, and then it decreases from year to year.
The method of accelerated depreciation is used in cases where the price of an asset can decrease much faster than in the process of its physical obsolescence, first under the influence of its obsolescence. The situation with computer equipment is more relevant, new generations of which arise much faster than the physical wear and tear of the computer. Apart from the factor of obsolescence, in favor of introducing the cumulative method of calculating depreciation is the fact that in the first years of service of a fixed asset it can generate more income than in the last, because at first the operating costs for repairs and technical maintenance of objects are significantly lower, than at the end.
Declining balance method (double regression): This method is calculated as follows: the depreciation rate applied in the straight-line method is multiplied by the so-called acceleration factor, expressed as a percentage. It varies from 100% to 200%. The 200% ratio is more common. When using it, a so-called double reduction in the book price occurs. This process is commonly referred to as the declining balance method of double rate depreciation. We take the straight-line depreciation rate, multiply it by the acceleration factor and the book price of the fixed asset and get the depreciation amount for the period. This amount is deducted from the book value of the fixed asset. The balance of the book price of the fixed asset acquired in this way is transferred to the next period, and the whole procedure is repeated.
Example:The truck has a useful life of 5 years. Accordingly, with the straight-line method, the depreciation rate for each year was 20% (100%/5). With the method with double bet write-off depreciation rate will be equal to 40% (2x20%).
Let's look at the table:
End of 1 year: starting price 10,000 annual depreciation amount 40% x10000=4000 residual value 6000
End of 2nd year: starting price 10,000 annual depreciation amount 40% x 6,000=2,400 residual price 3,600
End of 3 years: starting price 10,000 annual depreciation amount 40% x 3.600=1440 residual price 2160
End of 4 years: starting price 10,000 annual depreciation amount 40% x 2160= 864 residual price 1.296
End of the 5th year: the initial price is 10,000, the annual depreciation amount is 296, then we minus the liquidation price of 1000 and only 296 remains.
Here we see that the fixed depreciation rate has always been applied to the net book value of the previous year. The amount of wear (the largest in the 1st year) decreases from year to year. And, ultimately, the amount of depreciation in the final year is limited to the amount needed to reduce the net book value to the liquidation value.
Volume-Rate Method of Depreciation: This method of calculating depreciation is based on the actual physical use of the asset.
Eg:The truck has a service life of 90,000 km. Wear costs per 1 km.
Will be defined as follows:
Initial price - Liquidation price = 10,000-1,000 = 0.1/km.
Estimated number of units of work - 90,000
If we imagine that during the first year of operation the car had a mileage of 20,000 km, in the second year - 30,000 km. For the 3rd – 10,000 km; for the 4th year - 20,000 km; and for the 5th – 10,000 km; then it will look like this:
End of 1 year starting price 10,000 km, 20,000 annual depreciation amount 2000
End of 2 years starting price 10,000 mileage, km. 30,000 annual depreciation amount 3,000
End of 3 years starting price 10,000 mileage, km. 10,000 annual depreciation amount 1000
End of 4 years starting price 10,000 mileage, km. 20,000 annual depreciation amount 2000
End of 5 years starting price 10,000 mileage, km. 10,000 annual depreciation amount 1000
This method should be used in this case, when the output of the object during its useful life can be determined with sufficient accuracy.
The liquidation price is often not significant and is often ignored in practice.
Annual depreciation amount
The annual amount of depreciation charges is determined:1. With the linear method - based on the initial price or (current (replacement) price (in case of revaluation) of an object of fixed assets and the depreciation rate calculated based on the useful life of this object.
2. Using the reducing balance method - based on the residual price of the fixed asset item at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this item and a coefficient not higher than 3, established by the organization;
3. With the method of writing off the price by the sum of the numbers of years of the useful life - based on the initial price or (current (replacement) price (in case of revaluation) of an object of fixed assets and the ratio, the numerator of which is the number of years remaining until the end of the useful life of the object , and the denominator is the sum of the numbers of years of the useful life of the object.
During the reporting year, depreciation charges for fixed assets are accrued every month, regardless of the accrual method used, in the amount of 1/12 of the annual amount.
For fixed assets used in organizations with a seasonal nature of production, the annual amount of depreciation charges for fixed assets is accrued moderately during the period of operation of the organization in the reporting year.
With the method of writing off prices in proportion to the volume of production (work), depreciation charges are calculated based on the natural indicator of the volume of production (work) in the reporting period and the ratio of the initial price of the fixed asset object and the estimated volume of production (work) for the entire useful life of the fixed asset object.
Depreciation methods
Pt 18 PBU 6/01 establishes four methods for calculating depreciation:Linear method;
- reducing balance method;
- method of writing off the price by the sum of the numbers of years of useful use;
- method of writing off prices in proportion to the volume of products (works).
With all this, the annual amount of depreciation charges is determined (clause 19 of PBU 6/01):
- “with the linear method - based on the initial price or (current (replacement) price (in case of revaluation) of an object of fixed assets and the depreciation rate calculated based on the useful life of this object;
- using the reducing balance method - based on the residual price of the fixed asset item at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this item and a coefficient not higher than 3, established by the organization;
- with the method of writing off the price based on the sum of the numbers of years of its useful life - based on the initial price or (current (replacement) price (in case of revaluation) of an object of fixed assets and the ratio, the numerator of which is the number of years remaining until the end of the useful life of the object , and the denominator is the sum of the numbers of years of the useful life of the object.
With the method of writing off prices in proportion to the volume of production (work), depreciation charges are calculated based on the natural indicator of the volume of production (work) in the reporting period and the ratio of the initial price of the fixed asset object and the estimated volume of production (work) for the entire useful life of the fixed asset object.”
The application of one of the methods of calculating depreciation for a group of homogeneous objects of fixed assets is done throughout the entire useful life of the objects included in this group.
Straight-line depreciation method
With the linear method, the annual amount of depreciation is determined based on the initial price or the current (replacement) price (in case of revaluation) of an object of fixed assets and the depreciation rate calculated based on the useful life of this object.
The useful life of objects is determined by the organization without the help of others when accepting the object for accounting.
Determination of the useful life of an object of fixed assets is based on:
The expected period of use of this object in accordance with the expected productivity or capacity;
- expected physical wear and tear, depending on the operating mode (number of shifts), natural criteria and exposure to a brutal environment, the repair system;
- regulatory and other restrictions on the use of this object (for example, rental period).
In cases of improvement (increase) in the initially accepted standard characteristics of the functioning of an object of fixed assets as a result of reconstruction or modernization, the organization revises the useful life of this object.
Until January 1, 2002, when determining the useful life of fixed assets, organizations were guided by Resolution of the Council of Ministers of the USSR dated October 22, 1990 No. 1072 “On uniform standards of depreciation charges for the complete restoration of fixed assets of the national economy of the USSR.”
Based on Letter of the Ministry of Finance of the Russian Federation dated August 29, 2002 No. 04-05-06/34, when applying this resolution for accounting purposes, organizations use the designated Systematization to determine the useful life of fixed assets accepted for accounting (debit of account 01 “Fixed funds"), starting January 1, 2002.
Depreciation on fixed assets objects accepted for accounting before January 1, 2002 for accounting purposes continues to be accrued based on the useful life determined when registering the object, and the depreciation method chosen by the organization for a group of similar objects.
Example 1:The price of the fixed assets object is 260,000 rubles. In accordance with the systematization of fixed assets included in depreciation groups, approved by Resolution No. 1, the object is assigned to the third depreciation group with a useful life of more than 3 years up to 5 years inclusive. The useful life is set at 5 years. The annual depreciation rate is 20% (100% / 5 years), the annual depreciation amount is 52,000 rubles (260,000 x 20 / 100), the monthly depreciation amount is 4,333.33 rubles (52,000 / 12).
Reducing balance method
The reducing balance method for determining the useful life is established in this case, when the efficiency of using an object of fixed assets decreases with each subsequent year.
The annual amount of depreciation charges is determined based on the residual price of the fixed assets object at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this object and a coefficient not higher than 3 established by the organization (clause 19 of PBU 6/01).
According to the new rules of pt 19 PBU 6/01, introduced by Order of the Ministry of Finance of the Russian Federation No. 147n, when using the reducing balance method to calculate depreciation, an organization can apply a coefficient of no higher than 3.
The coefficient is established by the organization without the help of others and its value must be reflected in the accounting policies of the organization. Previously, PBU 6/01 did not provide for this possibility. But on Fri 54 Guidelines No. 91n stated that, in accordance with the legislation of the Russian Federation, small businesses can use an acceleration factor of 2; and by movable property, constituting a cash lease object and attributable to the active part of fixed assets, an acceleration factor may be applied in accordance with the criteria of a cash lease contract of no higher than 3. In practice, organizations could not use this provision, because neither the Federal Law of October 29, 1998 No. 164- The Federal Law “On Cash Rental (Leasing)” or the Federal Law of June 14, 1995 No. 88-FZ “On State Support for Small Businesses in the Russian Federation” does not establish such a coefficient.
Example 2:The price of the fixed asset is 260,000 rubles. Useful life is 5 years. Acceleration factor 2. Annual depreciation rate 20%. Annual depreciation rate taking into account an acceleration factor of 40%.
In the 1st year of operation:
The annual amount of depreciation charges will be determined based on the initial price formed when the fixed asset item was accepted for accounting, and will amount to 104,000 rubles (260,000 x 40% = 104,000).
In the 2nd year of operation:
Depreciation will be determined based on the residual price of the object at the end of the first year of operation and will be 62,400 rubles ((260,000 - 104,000) = 156,000 x 40%).
In the 3rd year of operation:
Depreciation will be determined based on the residual price of the object at the end of the second year of operation and will be 37,440 rubles ((156,000 - 62,400) = 93,600 x 40%).
In the 4th year of operation:
Depreciation will be determined based on the residual price of the object at the end of the third year of operation and will be 22,464 rubles ((93,600 - 37,440) = 56,160 x 40%).
During the 5th year of operation:
Depreciation will be determined based on the residual price of the object at the end of the 4th year of operation and will be 13,478.40 rubles ((56,160 - 22,464) = 33,696 x 40%).
The accumulated depreciation over 5 years will be 239,782.40 rubles. The difference between the initial price of the object and the amount of accrued depreciation in the amount of 20,217.60 rubles represents the liquidation price of the object, which is not taken into account when calculating depreciation by year, not counting the last year of operation. IN Last year operation, depreciation is calculated by subtracting the liquidation price from the residual price of the object at the beginning of the last year.
Method of writing off the price by the sum of the numbers of years of useful use
With this method, the annual depreciation rate is determined based on the initial price of the fixed asset object and the annual ratio, where the numerator is the number of years remaining until the end of the asset’s service life, and the denominator is the sum of the numbers of years of the useful life of the object.
Example 3:The price of the fixed asset is 260,000 rubles. Useful life is 5 years. The sum of the numbers of useful years will be 1 + 2 + 3 + 4 + 5 = 15.
In the first year of operation, the ratio will be 5/15, the amount of accrued depreciation will be 86,666.67 rubles (260,000 x 5/15).
In the 2nd year of operation, the ratio is 4/15, the amount of accrued depreciation is 69,333.33 rubles (260,000 x 4/15).
In the 3rd year of operation, the ratio is 3/15, the amount of accrued depreciation is 52,000 rubles (260,000 x 3/15).
In the 4th year of operation, the ratio is 2/15, the amount of accrued depreciation is 34,666.67 rubles (260,000 x 2/15).
In the last, 5th year of operation, the ratio is 1/15, the amount of accrued depreciation is 17,333.33 rubles (260,000 x 1/15).
Method of writing off prices in proportion to the volume of products (works, services)
When writing off the price of a fixed asset in proportion to the volume of products (works, services), depreciation charges are calculated based on the natural indicator of the volume of products (works) in the reporting period and the ratio of the initial price of the fixed assets object and the estimated volume of products (works) for the entire useful life of the object main assets.
Example 4:Having analyzed different methods of calculating depreciation, we can come to the conclusion that when using the reducing balance and write-off methods based on the sum of the numbers of years of the useful life, the amount of depreciation charges decreases with age. When choosing one of these methods for calculating depreciation, accountants must keep in mind that the accrued amount of depreciation affects the cost of products, work performed, services rendered.The price of the car is 65,000 rubles, the estimated mileage of the car is 400,000 km. In the reporting period, the car's mileage was 8,000 km, the amount of depreciation for this period will be 1,300 rubles (8,000 km x (65,000 rubles: 400,000 km)). The amount of depreciation for the entire mileage period is 65,000 rubles (400,000 km x 65,000 rubles: 400,000 km).
In organizations with a seasonal nature of production, the annual amount of depreciation charges on fixed assets is accrued moderately during the period of operation of the organization in the reporting year.
The monthly depreciation rate in all cases will be 1/12 of the annual depreciation rate.
Amount of depreciation charges
The amount of depreciation charges is determined in 3 ways: uniform, unevenly accelerated and accelerated. With the uniform method, the same amount is written off throughout the entire service life of the fixed assets. Unevenly accelerated depreciation involves taking into account the price of most of the fixed assets in the first years of operation. For example, in the 1st year – 50%, 2nd – 30%, 3rd – 20%. This allows the company, in the context of inflation, to more quickly recoup the costs incurred and apply them to the upcoming renovation of the property. Since 1991, enterprises have received the right to use the method of accelerated depreciation of the active part of fixed assets, that is, depreciation at inflated rates, but less than twice. When calculating depreciation, one should take into account the results of revaluations of fixed assets according to the coefficients published Federal service state statistics of the Russian Federation or based on the market price of property.The methods used in calculating depreciation are of great importance, because, on the one hand, its value provides the opportunity to acquire new property and replace obsolete property both physically and morally. On the other hand, the amount of depreciation deductions is included in the cost price, thereby influencing the amount of costs. Therefore, an unreasonable decrease in depreciation deductions deprives the enterprise of the ability to timely update fixed assets, while an overestimation of depreciation can lead to an unreasonable increase in production costs and a decrease in the enterprise’s profit. To calculate the amount of depreciation for the planned year, you must first group the fixed assets in relation to the collection of depreciation rates and find the input and retirement of fixed assets for the same groups. Since their entry and exit usually occur in different periods year, the average annual price is calculated.
Accounting for depreciation
Depreciation of fixed assets is done using one of the following methods of calculating depreciation charges:Linear method;
reducing balance method;
method of writing off the price by the sum of the numbers of years of useful life;
method of writing off prices in proportion to the volume of products (works).
The annual amount of depreciation charges is determined:
With the linear method - based on the initial price of the fixed asset object and the depreciation rate calculated based on the useful life of this object;
using the declining balance method - based on the residual price of the fixed asset item at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this item and the acceleration factor established in accordance with the legislation of the Russian Federation;
in the method of writing off prices based on the sum of the numbers of years of useful life - based on the initial price of the fixed assets object and the annual ratio, where the numerator is the number of years remaining until the end of the service life of the object, and the denominator is the sum of the numbers of years of the service life of the object;
with the write-off method, prices are proportional to the volume of products (works) - based on the natural indicator of the volume of products (works) in the reporting period and the ratio of the initial price of the fixed assets object and the estimated volume of products (works) for the entire useful life of the fixed assets object.
An example of determining the monthly depreciation amount using the linear method:
The starting price of the object is 120,000 rubles. The service life is determined to be 10 years. The annual depreciation amount will be 12,000 rubles. (RUB 120,000: 10 years), and monthly - RUB 1,000. (RUB 12,000: 12 months).
An example of determining the monthly amount of depreciation using the method of writing off the price in proportion to the volume of production (work).
The starting price of a truck is 120,000 rubles. The car's mileage is determined to be 120,000 km. The amount of depreciation will be 1 rub. for 1 km (RUB 120,000: 120,000 km).
An example of calculating annual depreciation amounts using the reducing balance method is presented in the table:
ACCRUAL OF DEPRECIATION USING THE DIMINISHING BALANCE METHOD |
|||
Annual amount, rub. | Accumulated depreciation, rub. | Residual price, rub. |
|
End of 1st year | 100000x40% =40000 | ||
End of 2nd year | 60000x40% = 24000 | ||
End of 3rd year | 36000x40% =14400 | ||
End of 4th year | 21600x40% = 8640 | ||
End of 5th year |
The initial price of the object is 100,000 rubles. The organization decided to use double the depreciation rate. The liquidation price of the object is 5,000 rubles.
With a service life of 5 years, the straight-line depreciation rate is 20% per year (100%: 5 years). With the declining balance method with double write-off rates, the depreciation rate will be 40% (20% x 2). This flat rate of 40% applies to the residual price at the end of each year. The estimated salvage value is not taken into account when calculating depreciation for years other than the most recent year. In the last year, the amount of depreciation is calculated by subtracting the liquidation price from the residual price at the beginning of the last year.
With the reducing balance method, the amount of depreciation over the years is miniaturized.
An example of calculating annual depreciation amounts using the method of writing off the price of an object based on the sum of the numbers of years of its useful life is presented in the table.
The estimated service life of the facility is 5 years. The sum of the numbers of years of operation will be 15(1+2+3+4+5). In the 1st year, the previously indicated ratio will be 5/15, in the 2nd - 4/15, in the 3rd - 3/15, 4th - 2/15, 5th - 1/15. The starting price of the object is 150,000 rubles.
ACCRUAL OF DEPRECIATION BY THE SUM OF NUMBERS METHOD |
|||
Annual amount, rub. | Accumulated depreciation, rub. | Residual price, rub. |
|
End of 1st year | 150000x5/15 = 50000 | ||
End of 2nd year | 150000x4/15 = 40000 | ||
End of 3rd year | 150000x3/15 = 30000 | ||
End of 4th year | 150000x2/15 = 20000 | ||
End of 5th year | 150000x1/15=10000 |
The table data shows that with age, the amount of depreciation decreases. Accumulated depreciation and residual depreciation price change accordingly.
The organization has the right to choose the method of calculating depreciation.
But for tax purposes, depreciation charges on fixed assets are calculated in accordance with Art. 258 and 259 ch. 25 Tax Code of the Russian Federation:
Depreciable property is divided into 10 groups in accordance with its useful life;
The taxpayer calculates depreciation using a linear or non-linear method.
With the linear method, the amount of depreciation per month is determined by multiplying the initial price of the object by the depreciation rate for the given object, and with the non-linear method, by multiplying the residual price of the object by the depreciation rate for the corresponding object.
The linear method of calculating depreciation is used for buildings, structures, transmission devices included in groups 8-10 of depreciable property; for the remaining depreciable property, the organization has the right to use any of the two designated methods of calculating depreciation.
The useful life of an object of fixed assets is determined by the organization when accepting the object for accounting.
Determination of the useful life of an object of fixed assets if it is not included in the technical criteria or is not established centrally is done based on:
The expected period of use of this object in accordance with the expected productivity or implementation capacity;
expected physical wear and tear, depending on the operating mode (number of shifts), natural criteria and exposure to a brutal environment, the system of all scheduled preventative repairs;
regulatory and other restrictions on the use of the facility (for example, rental period).
During the useful life of an object of fixed assets, the accrual of depreciation charges is not suspended, except for cases where the object is under reconstruction and modernization by decision of the managing organization and its transfer to conservation for a period of more than 3 months.
Objects of fixed assets whose consumer characteristics do not change over time (land plots and environmental management facilities) are not subject to depreciation.
Fixed assets costing less than 10,000 rubles. per unit or other limit established in the accounting policy, purchased books, brochures and other publications are also allowed to be written off as creation costs (selling expenses) as they are released for creation or operation.
In order to ensure the safety of these objects in production or during operation, the organization must organize appropriate control over their movement.
The organization's depreciation amounts are calculated every month in the amount of 1/12 of the annual norm and drawn up in a special development table “Calculation of depreciation of fixed assets” (if journal-order form accounting) or a machine diagram of similar content. These registers serve as the basis for reflecting the depreciation of fixed assets in the corresponding accounting accounts.
In practice, the amount of depreciation for the reporting period is determined as follows: to the amount of depreciation accrued in the past month, add the amount of depreciation from the price of received fixed assets for the past month and subtract the amount of depreciation from the price of fixed assets retired in the past month.
Depreciation charges for an object of fixed assets begin on the 1st day of the month following the month in which this object was accepted for accounting, and cease on the 1st day of the month following the month of full repayment of the price of the object or its write-off.
Organizations switching to a simplified taxation system from January 1, 2003 will not create depreciation charges for fixed assets and intangible assets.
The taxpayer has the right to write off the costs of acquiring fixed assets during the implementation of the simplified taxation system as expenses at the time the objects are put into operation.
If fixed assets were purchased before the transition to a lightweight taxation system, then their price is written off as expenses depending on the period of their use.
Thus, the taxpayer has the right to recognize the price of objects with a useful life of up to 3 years as an expense during the 1st year of introducing a simplified taxation system. The price of fixed assets with a useful life of 3 to 15 years is recognized as expenses for 3 years (in the 1st year - 50%, in the 2nd year - 30%, in the 3rd year - 20% of the price of fixed assets) . If the period of use of fixed assets is more than 15 years, then recognition of its price in expenses will be carried out in equal shares over 10 years.
To account for depreciation of fixed assets, passive account 02 “Depreciation of fixed assets” is used. This account is intended to summarize information about depreciation accumulated during the operation of fixed assets.
The accrued amount for their main production assets is reflected in the debit of the accounts of production costs and expenses (23 “Auxiliary production”, 25 “General production expenses”, 26 “ General running costs", etc.) and the credit of account 02 “Depreciation of fixed assets”.
For fixed assets leased out for current purposes, the amount of depreciation is reflected in the debit of account 91 “Other income and expenses” and the credit of account 02 (if rent generates operating income), and for fixed assets of non-production purposes - in the debit of account 29 “Service production and economy" and account credit 02.
For housing facilities, outdoor improvement and other similar objects (forestry and road management, special navigation facilities, etc.), also for non-profit organizations, the amount of depreciation is accrued according to the norms of depreciation charges for the full restoration of fixed assets at the end of the year on an off-balance sheet account 010 “Depreciation of fixed assets.”
The amount of depreciation for 100% depreciated fixed assets is not accrued.
When the company receives fixed assets that were previously in operation, their useful life with the new owner is determined by subtracting the period of their actual operation with the previous owner from the useful life established for new objects.
Example. The organization acquired an object of fixed assets for 120,000 rubles. The depreciation rate for this object is 12 years, and the merchant had the object depreciated for 7 years. The buyer's property must be depreciated for 5 years (12-7). The annual depreciation rate will be 20% (100: 5). The annual depreciation amount for the facility will be 24,000 rubles. (RUB 120,000 x 20: 100).
Upon receipt of fixed assets for which their service life has expired, the recipient of such an object establishes new term its operation without the help of others.
When disposing of own fixed assets, the amount of depreciation on them is written off to the debit of account 02 “Depreciation of fixed assets” from the credit of account 01 “Fixed assets”.
Analytical accounting for account 02 “Depreciation of fixed assets” is carried out by type and individual inventory items of fixed assets.
The accumulation and implementation of the depreciation fund is not reflected in accounting. As part of the proceeds from the sale of products (works, services), depreciation charges are credited to the current account or other accounts of the enterprise and written off from these accounts to finance major investments in fixed assets.
As previously mentioned, the organization has the right to choose the method of calculating depreciation.
Small enterprises, in accordance with the Federal Law “On State Support of Small Businesses” dated June 14, 1995 No. 88-FZ, can use accelerated depreciation of fixed assets, twice the norms established for the corresponding types of fixed assets. Together with the use of accelerated depreciation, small businesses can additionally write off as depreciation charges up to 50% of the initial price of fixed assets with service lives exceeding 3 years.
Depreciation groups
Depreciable property is combined once into the next 10 depreciation groups (clause 3 of Article 258 of the Tax Code of the Russian Federation):1st group - all short-lived property with a useful life from 1 year to 2 years inclusive;
- 2nd group - property with a useful life of more than 2 years up to 3 years inclusive;
- 3rd group - property with a useful life of more than 3 years up to 5 years inclusive;
- 4th group - property with a useful life of more than 5 years up to 7 years inclusive;
- 5th group - property with a useful life of more than 7 years up to 10 years inclusive;
- sixth group - property with a useful life of more than 10 years up to 15 years inclusive;
- seventh group - property with a useful life of more than 15 years up to 20 years inclusive;
- eighth group - property with a useful life of more than 20 years up to 25 years inclusive;
- ninth group - property with a useful life of more than 25 years up to 30 years inclusive;
- tenth group - property with a useful life of more than 30 years.
Types of depreciation charges
DEPRECIATION (from Latin amortisatioin - repayment) is the process of gradually transferring the price of fixed assets to manufactured products. The transferred part of the price relates to production costs and is included in the cost of production, acting as an element of the price of the product. An impartial basis for depreciation is the role of fixed assets in the production process.The essence of this feature lies in the fact that the main assets operate 100%, in their entire volume, in the production of the product, but due to their long service life, their price is not transferred to the finished product in full (like, for example, raw materials), but in parts, as they are used. physical and moral wear and tear. Depreciation charges are created to fully restore the price of worn-out fixed assets, replace retired machinery and equipment with new ones, and implement other major investments. Depreciation of fixed assets is taken into account by all enterprises, regardless of their form of ownership and organizational and legal status. The amount of depreciation charges is not random. It is established and regulated by law in accordance with the country's policy concept. It is determined mainly by 2 circumstances: the useful life of the funds and their replacement price.
Depreciation charges remain at the disposal of companies and form a depreciation fund, which has a strictly intended purpose when used. In terms of inflation, the amount of accrued depreciation may be insufficient to purchase new machinery and equipment. Therefore, from time to time, fixed assets are revalued, which allows them to increase their price and, accordingly, increase depreciation charges.
In almost all countries of the world, accelerated depreciation is used, which is a method of accounting for depreciation in which most of the cost of assets is written off in the initial period of the actual product cycle and each subsequent write-off is carried out on a progressively decreasing scale.
The following types of depreciation write-offs are used around the world:
Linear or proportional, which can be normal or accelerated;
- additional (when the amount of depreciation exceeds the original price of the written-off object);
- special (when, in order to revive economic activity, the government allows a temporary increase in the rate of contributions);
- preliminary (when depreciation is written off before the equipment begins to operate);
- digressive or write-off from the declining balance (when deductions are made not from the initial, but from the book price of fixed assets).
The latter type is widely used in the countries of the European Union.
In modern conditions, in economically advanced countries, depreciation deductions are the main source of financing for serious investments. They account for 2/3 of gross investments.
Depreciation charges for intangible assets
Intangible assets are accounted for in balance sheet at the residual price. The price of intangible assets is repaid using the depreciation method over the established period of their useful life.Depreciation deductions are carried out using one of the following methods:
Using the linear method based on the standards calculated by the organization on the basis of their useful life;
reducing balance method;
the method of writing off prices in proportion to the volume of products (works, services).
The application of one of the methods for a group of homogeneous intangible assets is done throughout their entire useful life.
During the useful life of intangible assets, the accrual of depreciation charges is not suspended, except for cases of conservation of the organization.
The annual amount of depreciation charges under the straight-line method is determined on the basis of the initial price of intangible assets and the depreciation rate calculated based on the useful life of this object. With the reducing balance method, the amount of depreciation for the year is calculated on the basis of the residual price of intangible assets at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this object.
During the reporting year, depreciation charges on intangible assets are accrued every month, regardless of the accrual method used, in the amount of 1/12 of the annual amount.
With the method of writing off prices in proportion to the volume of products (works), depreciation charges are calculated depending on the natural indicator of the volume of products (works) in the reporting period and the ratio of the initial price of an intangible asset and the estimated volume of products (works) for the entire useful life of this object.
The useful life of intangible assets is determined by the organization when accepting the object for accounting. The useful life is the period during which the implementation of an object brings profit and benefit to the enterprise.
The useful life for patents, licenses, rights of use, etc. is the period negotiated in the contract.
For intangible assets for which it is difficult or unrealistic to find a useful life, depreciation rates are established based on a conditional period (but less than the life of the organization).
In Russia, this period is 20 years of continuous operation. In China, the useful life in such cases is 10 years. In the USA, in similar situations, it is customary to focus on the so-called reasonable period, not exceeding 40 years.
Depreciation is not accrued for intangible assets acquired under a gift agreement and free of charge during the privatization process, received with the introduction of economical appropriations, and intangible assets of economical organizations.
It is possible not to charge depreciation charges for certain types of intangible assets, the list of which the company establishes on its own. Typically, these include assets whose value does not decrease with age (for example, trademarks).
Depreciation charges for intangible assets begin on the first day of the month following the month in which this object was accepted for accounting, and are accrued until the price of this object is fully repaid or this object is retired from accounting. Depreciation charges for intangible assets cease from the first day of the month following the month in which the price of this object is fully repaid or this object is written off from accounting.
The procedure for depreciation deductions
I. General provisions1. The objects for calculating depreciation for full restoration are the fixed assets (not counting the fixed assets listed in paragraph 2 of the real Regulations) of companies, associations, organizations operating on the principles of economic accounting, regardless of the form of ownership of the means of production.
Fixed assets represent a set of material assets operating in kind over a long period of time both in the sphere of material production and in the non-production sphere.
The main assets include buildings, structures, transmission devices, working and power machines and equipment, measuring and control instruments and devices, computer technology and software for it, vehicles, tools, production and household equipment and accessories, working and productive livestock, long-term plantings, on-farm roads and other fixed assets.
In addition to those listed above, the objects for calculating depreciation include construction objects that have not been completed or have not received acceptance certificates and are in operation by those companies to which these objects will be transferred to the main assets; serious costs for land improvement not associated with the creation of structures; equipment and vehicles that are in stock (reserve in a warehouse) and are listed on the balance sheet of the main activities of operating companies.
2. Depreciation is not charged on subsequent fixed assets:
a) productive livestock, buffaloes, oxen, deer;
b) library funds;
c) urban improvement structures subordinate to the executive committees of local Soviets of People's Deputies, and public roads;
d) funds transferred in accordance with the established procedure for conservation;
e) funds of economical organizations, including research, design and technological organizations.
3. The following are not included in the main assets and are not objects for depreciation:
a) means of labor that last less than 1 year, regardless of their price;
b) means of labor at a price of up to 300 rubles per unit, regardless of their service life, except for agricultural machinery and tools, mechanized construction tools, as well as working and productive livestock, which are classified as fixed assets, regardless of their price;
c) fishing gear (trawls, seines, nets, nets and others) regardless of their price and service life;
d) gas-powered saws, delimbers, floating cable, seasonal roads, mustaches and temporary branches of logging roads, temporary buildings in the forest with a service life of up to 2 years (mobile heating houses, boiler stations, pilot workshops, gas stations, etc.);
e) special tools and special devices (tools and devices with a motivated purpose, created for serial or mass production of certain products or for the production of a personal order) regardless of their price;
f) special clothing, special shoes and bedding, regardless of their price and service life;
g) individual construction structures and parts, parts and assemblies of machines, equipment and rolling stock, created for construction, repair purposes and equipment, included in revolving funds;
h) equipment and machines listed as finished products (products) in the warehouses of manufacturing companies, supply and sales organizations, as well as equipment that requires installation and is listed on the balance sheet of major construction;
i) machines and equipment that have been installed, but are not in use and are listed on the balance sheet of serious construction;
j) temporary (non-title) structures, fixtures and devices, the construction costs of which are attributed in accordance with the current procedure to the cost of construction and installation work as part of costly expenses;
k) young animals and fattening animals, poultry, bunnies, fur-bearing animals, bee families, and experimental animals;
m) long-term plantings grown in nurseries as planting material.
4. Uniform norms of depreciation charges for the complete restoration of the main assets of the national economy of the USSR, approved by Resolution of the Council of Ministers of the USSR of October 22, 1990 N 1072 for classification groups, are not subject to future differentiation.
5. Depreciation rates for residential buildings are established only to determine wear and tear.
6. In the section “Working machines and equipment” (codes of sections 41 - 46) of the unified depreciation standards, depreciation rates are given only for special technological equipment and machines of the corresponding industry or type of production. These standards are used in enterprises of all other industries that have such fixed assets.
7. Features of certain types of production, mode of operation of machinery and equipment, natural criteria and the impact of a brutal environment, which cause increased or decreased wear and tear of fixed assets operated in a workshop or enterprise, are taken into account by introducing appropriate correction factors established to depreciation rates.
When applying two correction factors to one depreciation rate at once, the overall rate is determined by the formula:
H2 = H1 x (K1 + K2 - 1),
where H2 is the adjusted depreciation rate;
H1 - approved basic depreciation rate;
K1 and K2 - coefficients used in the presence of deviations from the operating modes and other criteria established by the basic standard.
If it is necessary to introduce 3 correction factors to the established norm, the required norm is determined by the formula:
H2 = H1 x (K1 + K2 + K3 - 2).
8. Depreciation rates are usually set as a percentage of the book value of fixed assets (initial or replacement).
Depreciation rates for rolling stock of motor transport are set as a percentage of the book price of vehicles (bus, heavy truck, trailer, semi-trailer), excluding trucks (codes 50402 - 50409), passenger cars (codes 50417, 50419) and buses (codes 50421, 50422 , 50424), for which standards are set as a percentage of their book price per 1000 km.
9. Norms of depreciation charges for the complete restoration of main production assets by sectors of the mining industry (coal, shale, mining, mining of rare materials, precious metals, diamonds and non-metallic minerals), the service life of which depends on the period of depletion of the reserves of the necessary minerals and which, after the depletion of the reserves without serious re-equipment, cannot be used for other purposes, are installed in accordance with the Annotation attached to this Regulation in rubles and kopecks per ton of redeemable supplies (recoverable plus operational losses) of the necessary minerals.
10. When calculating depreciation charges for fixed assets, the following should be managed:
a) uniform standards of depreciation charges for the complete restoration of the main assets of the national economy of the USSR, approved by Resolution of the Council of Ministers of the USSR of October 22, 1990 N 1072.
The calculation of depreciation for the main assets, including those received as imports, which are not in the Collection of uniform norms of depreciation deductions for complete restoration of the main funds of the national economy of the USSR, should be created according to the norms of depreciation deductions for such funds.
In cases where new types of fixed assets have been made or approved norms cannot be used by analogy, the lead developers of the technical documentation of the designated funds submit drafts of the corresponding norms of depreciation charges together with calculations and justifications for approval to the USSR State Planning Committee and, in copies, to the USSR Ministry of Finance and the USSR State Construction Committee. Before approval of the projected standards, enterprises can create depreciation charges according to these projected standards;
b) depreciation rates approved by the USSR Ministry of Civil Aviation in agreement with the USSR State Planning Committee and the USSR Ministry of Finance - for airplanes, helicopters and aircraft engines of civilian aviation;
c) depreciation rates approved by appropriate higher organizations - for production assets of mining industries, the service life of which depends on the period of development of reserves of the necessary minerals.
II. Procedure for calculating depreciation
11. Reimbursement of the balance sheet (initial or replacement) price of fixed assets of companies is carried out by including depreciation charges according to approved uniform standards in production costs (appeals), cost estimates.
12. Depreciation deductions are made by enterprises (organizations) every month based on the established uniform norms of depreciation deductions and the book value of fixed assets for individual groups or inventory items on the balance sheet of the enterprise (organization).
13. Depreciation charges for the complete restoration of the active part of fixed assets (machinery, equipment and vehicles) are made during their standard service life or the period during which the book price of these assets is transferred 100% to the costs of production and use.
For all other capital assets, depreciation deductions for full restoration are made during the entire actual life of their service.
14. For oil wells, depreciation for complete restoration is calculated according to established standards for 15 years, and for gas wells - for 12 years, regardless of their actual service life.
For abandoned and under-depreciated oil and gas wells, depreciation charges for full restoration continue to be accrued until their book price is fully transferred to the oil, gas and other products produced by the enterprise.
15. The initial data for determining depreciation charges for the planned period are the characteristics of the prices of fixed assets at its beginning, annual and promising plans for the commissioning of fixed assets and funds coming from other companies and organizations based on decisions that have already taken place, data on the projected disposal of fixed assets funds and approved depreciation rates,
16. The enterprise, based on its own characteristics of accounting for fixed assets and the ability to use computer technology, determines the method for calculating the amount of depreciation charges.
With all this, the following work should be done:
a) group the existing fixed assets at the beginning of the planning period according to the groups provided for in the uniform norms of depreciation charges for full restoration, and find their price. At the same time, from the fixed assets related to machinery, equipment and vehicles, exclude 100% depreciated assets whose standard service life has expired;
b) find by groups (inventory objects) the average annual price of capital assets put into operation and funds coming from other organizations according to decisions already taken, the average annual price of retired main assets, including the transfer and sale of main assets according to decisions taken, as well as the average annual price of main assets, relating to machines, equipment and vehicles, the standard service life of which begins in the planned year;
c) find by groups (inventory objects) the average annual price of all depreciable fixed assets.
17. The price of fixed assets put into operation in the next year is taken in accordance with the volumes of serious investments planned by enterprises, and the receipt of fixed assets from other production associations, companies and organizations is also taken into account.
The average annual price of capital assets put into operation is determined by dividing the price of these capital assets by 12 and multiplying the acquired result by the number of full months during which the capital assets put into operation will be operated.
The price of retiring fixed assets is determined on the basis of data on their projected disposal in the planned year based on their technical condition, the economic need for renewal and other circumstances taken into account in terms of technical re-equipment and reconstruction of companies and organizations.
The average annual price of retiring fixed assets is determined by dividing the price of retiring fixed assets by 12 and multiplying the acquired result by the number of full months remaining until the end of the year from the time of their planned disposal.
The average annual price of fixed assets related to machinery, equipment and vehicles, the standard service life of which expires in the planning period, is determined in a similar way, and their book price by this time is transferred 100% to production costs. In this case, the price of these funds is divided by 12 and multiplied by the number of full months remaining until the end of the year from the date of expiration of their standard service life.
18. The average annual price of a particular group of fixed assets consists of their price at the beginning of the planning period and the average annual price of fixed assets put into operation and received in the planned year from other companies, minus the average annual price of retiring fixed assets.
In all this, the price of 100% depreciated fixed assets related to machinery, equipment and vehicles, the standard service life of which begins at the beginning of the planned year, is not taken into account, as well as the average annual price of this group of fixed assets from the moment of expiration of their standard service life during the planned year.
19. The amount of depreciation charges for the planned period is calculated for each inventory item or group of fixed assets by multiplying the average annual price of these funds by the appropriate depreciation rates, taking into account correction factors reflecting the actual operating conditions of these means of labor in the workshop or enterprise.
To adjust the norms of depreciation deductions to the actual operating conditions of machinery and equipment, the shift of work of the tools of labor adopted in the calculations of the production plan is taken, and in the absence of it, the actual shift in which the workshop or enterprise operates for most of the year.
At enterprises with a seasonal nature of production, equipment shift ratios are not used.
In addition, in appropriate cases, correction factors are also used that take into account the characteristics of natural conditions and the impact of a brutal environment.
20. The total amount of depreciation charges for the planned year for all depreciable fixed assets is determined by the method of calculating depreciation amounts calculated for all groups of fixed assets without taking into account 100% depreciated funds related to machinery, equipment and vehicles.
The amount of accrued depreciation is applied to the cost of manufactured products, work performed or services rendered every month; in seasonal production, the annual amount of depreciation is included in production costs for the period of operation of the enterprise in a year.
Throughout the year, the determination of the amount of depreciation charges for a given month is made based on the amount of depreciation accrued for the previous month, adjusted according to established standards in connection with the configuration of fixed assets for the previous month, also in connection with the expiration of the standard service life of 100% depreciated machinery and equipment and ts.
21. Accrual of depreciation on fixed assets newly put into operation begins on the first day of the month following the month of their commissioning, and on retired fixed assets it stops on the first day of the month following the month of disposal.
For 100% depreciated fixed assets related to machinery, equipment and vehicles, depreciation ceases from the first day of the month following last month, in which the price of these funds was transferred one hundred percent to the price of products (works, services).
22. For major construction projects or parts thereof that have not been completed or have not received acceptance certificates, but are practically operated by those enterprises and organizations to which they will be transferred as fixed assets, or with their consent by other enterprises and organizations, depreciation is charged at general procedure- from the first day of the month following the month of commissioning, without correspondingly reflecting in the accounting the amount of depreciation for these main assets. The basis for calculating the amount of depreciation is a certificate of the price of the designated objects or their parts according to the accounting data of serious investments.
When drawing up acts of acceptance of the commissioning of these objects and enrolling them in the main assets, the previously accrued amount of depreciation is clarified and depreciation is immediately determined, which is reflected in the accounting.
23. Depreciation is not calculated during the reconstruction and technical re-equipment of fixed assets with their complete stop, also in the case of their transfer to conservation in the prescribed manner. During reconstruction and technical re-equipment, the standard service life of fixed assets is extended.
24. For fixed assets leased, depreciation deductions are made by the lessor or the lessee in accordance with the form of lease and the criteria of the contract.
When leasing companies (associations) or structural units of associations to organizations, depreciation deductions for leased fixed assets are carried out by rental enterprises, reflecting deductions as part of the cost of the products (works, services) they produce.
In case of surrender operating enterprises for the lease of individual fixed assets, depreciation deductions for them are carried out by the lessor with deductions included in expenses from non-operating operations with compensation through receipt of rent included in income from non-operating operations.
For the main assets of an enterprise under construction, as well as for objects under construction, used in accordance with the construction organization project to carry out construction and installation work and other needs of the contractor, depreciation is charged by the developer according to established standards on the basis of a certificate of the price of the designated main assets.
Contracting Building company reimburses depreciation charges as part of the rent for the introduction of fixed assets of the enterprise under construction.
25. Serious costs for paid fixed assets, subject to transfer to the lessor upon expiration of the lease contract, are amortized every month by the lessee during the lease term based on the established standards for the objects on which the indicated costs were incurred.
26. In the case of write-off of fixed assets before their book value is fully transferred to production costs and the appeal, the amount of underaccrued depreciation charges is reimbursed from the profits remaining at the disposal of the enterprise. These amounts are used in the same order as depreciation charges.
III. The procedure for introducing accelerated depreciation of the active part of fixed assets
27. In order to create monetary criteria for accelerating the implementation of scientific and technical achievements in the creation and increasing the interest of companies in accelerating the renewal and technical development of the active part of the main production assets (machinery, equipment, vehicles), enterprises have the right to use the method of accelerated depreciation of the active part of the main production assets entered into force after January 1, 1991.
28. Accelerated depreciation is a motivated way of more quickly, in comparison with the standard service life of fixed assets, the complete transfer of their book value to the costs of production and use.
29. Enterprises can use an accelerated method of calculating depreciation in relation to fixed assets used to increase the production of computer equipment, new advanced types of materials, devices and equipment, and expand product exports in cases where they carry out a massive replacement of worn-out and obsolete equipment with the latest, more productive ones upon coordination of this issue with the State Planning Committee of the USSR or the State Planning Committees (ministries of economics) of the union republics.
30. When introducing accelerated depreciation, enterprises use a uniform (linear) method of calculation, while the rate of annual depreciation deductions for full restoration approved in the prescribed manner (for the corresponding inventory item or their group) increases, but less than twice.
31. The method of calculating accelerated depreciation does not apply to the following types of machinery, equipment and vehicles:
Machinery, equipment and vehicles with a standard service life of up to 3 years;
- certain types of equipment in Aeroflot’s aircraft engine fleet, the standard service life of which is determined depending on the number of hours of operation of aircraft and helicopters;
- rolling stock of motor vehicles, for which depreciation for renovation is calculated according to standards determined as a percentage of the price of the vehicle per 1000 km of its actual mileage;
- unique technology and equipment created for use only for certain types of tests and the production of a limited type of certain products.
32. Depreciation deductions for renovation, accrued in an accelerated manner, are used by enterprises independently to finance activities in accordance with paragraph 29 of the real Regulations.
In the event that the amounts of depreciation charges accrued by enterprises are used by them for purposes that do not correspond to the fronts outlined in the real Regulations, not coordinated with the State Planning Committee of the USSR, state plans (ministries of economics) of the union republics, additional amounts depreciation to be calculated using the accelerated method is excluded from production (application) costs.
33. Inflated depreciation charges for the complete restoration of machinery, equipment and vehicles are carried out during the new settlement period depreciation period their services until their entire price is fully transferred to the products manufactured or services provided.
34. Small enterprises, together with the use of an accelerated depreciation method to stimulate the renewal of machinery and equipment, can additionally write off as depreciation charges in the first year of operation up to 20 percent of the initial price of fixed assets with a service life of more than 3 years.
If the activity of a small enterprise is terminated before the end of the 1st year, the amount of additionally accrued depreciation is subject to restoration due to growth balance sheet profit enterprises.
IV. Accounting for depreciation of fixed assets
35. Depreciation of fixed assets is determined and taken into account by all enterprises, regardless of the form of ownership, for all types of fixed assets (regardless of whether depreciation is accrued on them or not), except library collections, film funds, museum and artistic values, stage and production facilities, buildings and structures that are monuments of architecture and art, productive livestock, oxen, buffalo and deer, long-term plantings that have not reached operational age, exhibits of the animal world in zoos and other similar institutions, also equipment, exhibits, samples, models, active and inactive, mock-ups and other pleasant aids located in offices and laboratories and used for scientific purposes.
For individual objects of fixed assets, the amount of depreciation is established, if necessary, on the basis of the data available in the inventory cards (inventory books) on the initial or replacement price of the object, the standard time it was in operation and the applicable depreciation rates.
The amount of depreciation for 100% depreciated fixed assets is not accrued.
36. Depreciation of fixed assets is reflected by enterprises and organizations based on the established uniform norms of depreciation charges.
We figured out what depreciation is and why it is needed. Here we will find out the existing methods for calculating depreciation of fixed assets, as well as calculation formulas. Let's look at each method in detail and give an example of a calculation for clarity.
All existing methods Depreciation charges are divided into linear and non-linear; a total of four are used in accounting. The organization chooses a convenient method for itself and uses it to write off depreciation charges.
Methods for calculating depreciation of fixed assets
Linear method of calculating depreciation of fixed assets
The most common way. With this method, depreciation is accrued in equal shares over the entire service life. For the calculation, the initial cost is taken, which is the sum of all costs incurred in connection with the acquisition of the object. If the object has been revalued, then the replacement cost is used for calculation.
Formula for calculating the linear method of calculating depreciation of fixed assets
A = Cost of fixed assets * Depreciation rate / 100%
An example of calculating depreciation using the straight-line method
Reducing balance method
This is an accelerated method for calculating depreciation, why it is good and when it is convenient to use it, read the article dedicated to this method “Calculating depreciation using the reducing balance method.” The calculation is based on data on the residual value of the object.
Formula for calculating the reducing balance method of depreciation
With this method, the annual amount of depreciation is calculated using the formula:
A = Residual value * Depreciation rate * Acceleration coefficient / 100%,
Residual value - initial value less accrued depreciation.
Norm A. = 100% / useful life.
Acceleration coefficient is a coefficient established by the organization itself.
An example of calculating depreciation charges using the reducing balance method
If we continue to count depreciation further, it will decrease indefinitely, but will always be greater than 0. In order to completely write off the cost of the operating system, in tax code there is Article 259, which stipulates that when residual value the object will be equal to 20% of the original cost, depreciation is calculated as the residual cost / number of remaining months of operation.
Fourth (last) year of operation:
A = 12,500 / 12 = 1,042.
Thus, over 4 years, the fixed asset was completely written off through depreciation.
Video lesson. Methods for calculating depreciation of fixed assets of an organization
The video tutorial explains in detail the methods for calculating depreciation of an organization's fixed assets and how it is calculated. The lesson is taught by a consultant, an expert on the site “Accounting for Dummies”, Chief Accountant Gandeva N.V. ⇓
You can download the slides and presentation for the video using the link below.
Cost write-off method based on the sum of numbers of years of useful life
Formula for calculating write-off value by the sum of the number of years of useful life
Annual depreciation is calculated using the formula:
A = Initial status of the OS * number of years remaining until the end of the useful life / sum of numbers of years of useful life
Example of depreciation calculation
Method of writing off cost in proportion to the volume of products (works)
Formula for calculation using the write-off method in proportion to the volume of production
A = Actual volume of production * Initial production / Estimated volume of production for the entire useful life
Calculation example
The fixed asset is a car with an initial price of 100,000. Estimated mileage is 400,000 km.
We find the ratio:
initial cost / estimated mileage = 100,000 / 400,000 = 0.25 rub/km.
Actual mileage January - 4000 km. A = 4000 * 0.25 = 1000.
Actual mileage February - 9000 km. A = 9000 * 0.25 = 2250.
Actual mileage March - 2000 km. A = 2000 * 0.25 = 500.
Depreciation is calculated in the same way for each month. The chosen method for calculating depreciation charges is reflected in OS-1a and OS-1b, as well as in the accounting policies of the organization.
We continue the topic of fixed assets, next time I will tell you about.
