Line 1150 book. The balance sheet is intended to reflect fixed assets. Fixed assets are reflected in the balance sheet at their residual value.
Fixed assets are assets that can be used as production assets necessary for the production of goods, provision of services and implementation of work. Also, fixed assets are property that is used to manage the organization. These include the following categories:
Characteristics of article 1150 in accounting. balance sheet
Fixed assets are grouped into the following sections:
- By area and intended use (industrial, non-industrial);
- According to the indicator of use (in operation, during conservation, in reserve, at the stage of completion, during reconstruction);
- According to property rights (objects in use; objects leased; objects that the company owns by right of ownership; objects for household needs);
- By structure (transport, devices, buildings, etc.).
Currently, a special OKOF classifier is used to systematize OS.
In fixed assets, depending on their functionality, passive and active parts are distinguished.
The active part has a direct impact on the object of activity, and also determines the volume and quality characteristics of the products produced. The passive part is designed to organize the required conditions for the functioning of the active part.
Balance sheet cost of OS
Fixed assets are assets that cost more than one hundred thousand rubles. Their service life is more than twelve months. In the bay. the fixed assets balance is entered in an amount reduced by the amount of depreciation.
The cost of fixed assets on the balance sheet (line 1150) is filled in according to the balance that was formed at the end of the reporting period for the debit of account 01. The balance on loan 02 of account is subtracted from it.
OS analytics in balance
OS is analyzed in cost and physical terms.
Natural indicators indicate the amount of fixed assets, calculations of production load, coordination of repair work and replacement of industrial devices.
Cost indicators reflect the goal of the cost of growing fixed assets, calculating write-offs for depreciation, the initial cost and profitability of the object.
There are three methods for analyzing fixed assets on the balance sheet:
- Primary cost. It reflects the company's costs for the acquisition, transportation and commissioning of objects. Read more in.
- Current value is the price of recreating an OS object under new conditions of use. It reflects how much money the company had to spend during the replacement of the OS production level in stock. It is established by the method of property revaluation. Read more in.
- Residual value refers to the value that has not yet been transferred to the finished product. To calculate it, it is necessary to subtract depreciation from the primary cost. Read more in.
There are also two additional ones. analysis method:
- Amortized cost is the price needed to value finished goods.
- Liquidation value is the price of possible sale of depleted fixed assets.
Fixed assets in the balance sheetare reflected in line 1150 of the “Non-current assets” section. Read about the features of data generation for this line in our material.
What is considered a fixed asset?
Fixed assets include property assets that can be used as production assets necessary for the manufacture of products (providing services, carrying out work), as well as property used to manage the company. The fixed assets include:
- buildings and constructions;
- land;
- equipment;
- auto, motorcycle and other equipment;
- computing devices;
- measuring instruments;
- household equipment;
- farm livestock;
- perennial plantings;
- on-farm, logistics roads and railways, as well as other similar assets.
Fixed assets also include capital investments in the land fund (work that significantly improves the quality of agricultural land), environmental management facilities, as well as completed capital investments in leased property.
The cost of registered fixed assets consists of all costs associated with their acquisition and is repaid through depreciation. Depreciation charges are made using one of the methods chosen by the enterprise (clause 48 of the PBU for accounting and accounting, approved by order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n):
- linear;
- reduction of balance;
- by the sum of the numbers of years of useful life;
- in proportion to the volume of production.
NPO property is not depreciated. The cost of land and mining facilities, water and other subsoil is not repaid.
Cost of fixed assets on the balance sheet: line 1150
In accounting, fixed assets include assets worth more than 40,000 rubles. with a service life of more than a year. In the balance sheet, fixed assets are reflected in the amount of their value reduced by the amount of depreciation (i.e., at the residual value).
Read about how the residual value of fixed assets is determined in the material “How to determine the residual value of fixed assets” .
In the case of additional equipment (reconstruction, partial write-off) of fixed assets, leading to a change in the initial cost, this information is reflected in the appendices to the balance sheet. The same applies to the case of revaluation of property, carried out by indexing the replacement cost of assets or by direct recalculation to the actual market value. Any differences that arise are credited to additional capital.
Results
To reflect fixed assets in the balance sheet, a specific line (1150) is allocated in the section devoted to non-current assets. This property includes objects of a certain value (above 40,000 rubles) and service life (over 1 year). On the balance sheet, this cost is shown reduced by the amount of depreciation. Situations of changes in value associated with additional equipment (reconstruction, partial write-off) and revaluation are disclosed in the appendices to the balance sheet.
You don't know what the book value of a fixed asset is? Then we will consider this issue and dwell on the main points that management and accountants need to remember.
It is worth understanding not only the concepts themselves, but also knowing, for example, what line of the balance sheet is the book value of fixed assets. There are many nuances that you should pay attention to.
Required information
To determine the book value of fixed assets, you need to clearly understand what it is and what basic legal provisions govern their accounting.
Concepts
Fixed assets are the tangible assets of a company. The expected useful life of the OS is more than a year.
The cost of fixed assets with deductions for accumulated depreciation is net fixed assets or residual value. When purchasing an OS, this is the initial cost.
Fixed assets are accepted for accounting at their primary cost, but later the residual value is reflected, which is defined as the difference between the initial cost and depreciation charges. Accounting is carried out in non-current assets.
The book value of fixed assets is the value at which they are reflected in. This is the value of the fund based on the results of the revaluation or primary indicators of value that were not revalued.
The rules for recognizing an object as the main one are prescribed in. Do not confuse fixed and current assets, which include raw materials, fuel materials, containers, etc.
It is determined taking into account the quantity of goods or volume of work. Fixed assets can be production or non-production.
Purpose of OS
Considering the composition and purpose, operating systems are divided into the following types:
- building;
- construction;
- transfer device;
- transport and equipment;
- tools;
- household and industrial equipment;
- perennial planting, etc.
- applications in the production process;
- delivery to another person;
- performing social functions.
Legal basis
Current regulations:
Emerging nuances
Let's determine what you need to pay attention to. Let's look at questions that often worry inexperienced specialists.
At what cost are fixed assets reflected on the balance sheet?
OS includes assets that cost more than 40 thousand rubles. In the balance sheet they are included in amounts that are reduced by depreciation amounts.
The value of the fixed assets according to balance sheets (this is balance sheet line 1150) is filled in according to the balance information that is formed at the end of the period according to DT 01. The balance according to CT 02 is subtracted.
If additional equipment or reconstruction of the operating system is carried out, which increases their cost, such data is reflected in.
This also applies to the revaluation of property assets, which is carried out no more than once a year (clause 49 of the PBU).
Revaluation is carried out when indexing the replacement cost of an asset or when recalculating to actual prices. The difference will be increased by additional capital.
If the OS is not suitable, it must be written off (). Residual value indicators will increase the item for other expenses.
The initial cost will include estimated obligations, which are formed from disposal costs and the costs of dismantling the liquidated asset.
Revaluation of fixed assets is carried out if, during the preparation of the balance sheet, a difference in the prices of the object is revealed from those reflected in previously compiled balance sheets. That is, we are not talking about a fair price.
In such a situation, the cost of the object is reviewed and the reflection of the prices of each group, which relates to the company’s operating system, is analyzed. Fair value is the money that is used to pay specific obligations that are concluded between the parties.
The value is reflected in the balance sheet according to the following categories:
The documents record the price that was set when funds were issued. Market value includes fixed assets that are used to pay for goods that are sold on an active market.
The result of the revaluation in the balance sheet should be reflected as follows:
Revaluation is a regular and mandatory procedure. Held 1-2 times a year.
How to increase the indicator?
The rules for calculating the value of net assets are prescribed in FCSM No. 03-6/pz dated January 29, 2003.
If the net asset indicators are violated, problems will arise in the operation of the enterprise if:
- based on the results of annual activities, it is necessary to reduce the authorized capital;
- the company decides to increase its authorized capital;
- JSC decides to buy back shares;
- the company distributes income among participants and pays dividends.
In order to prevent the closure of the company () and restrictions on the rights of investors, financiers increase the size of net assets in current periods.
For this purpose, assets are formally created - in the short term, certain lines of the active parts of the balance sheet are increased, while the amount of material assets does not change.
Use the following options:
Such actions are illegal. What is the legal method to use when increasing the net assets of an LLC?
By minimizing liabilities like this:
- taking measures to manage and control accounts receivable;
- reorganizing the production process, reducing the cost of goods;
- changing the procedure for accounting expenses.
The increase is carried out:
- when attracting additional external investments;
- upon receipt of assets through reorganization;
- when revaluing fixed assets.
Revaluation allows you to improve the book value of fixed assets. This method is used by a privatized company whose property assets are undervalued during creation.
The accounting procedure for revaluation will allow increasing the standard amounts for net assets. The balance sheet data for the additional capital item is excluded by the Order from the liabilities that are accepted for calculations.
This means that an increase in the active parts of the balance sheet with an increase in fixed assets in calculations is not accompanied by a corresponding increase in responsibilities.
The result of the revaluation should not be taken into account when calculating. The company does not have to include the additional valuation amount in profit, which is subject to tax.
Sample certificate
Certificates of the balance sheet value of fixed assets can reflect their value according to accounting information as of a certain date. Such documents are not considered mandatory forms of accounting reports.
A certificate of the book value of the fixed assets is used in the internal analysis of the company's solvency for the purpose of maintaining management accounting.
It is presented to a third-party user - an investor, an insurance company, etc. The main fund can be presented at the conclusion of a commercial transaction.
Since the government has not approved the form, the certificate can be drawn up arbitrarily. The company itself can develop the form, taking into account its needs and work characteristics.
The form of the certificate is approved within the enterprise by the relevant Order. You can issue a certificate like this:
Increase in book value after repair
The costs associated with modernization, retrofitting, and completion of the operating system will increase their primary cost. The depreciation amount for objects accrued before reconstruction work will not be changed.
The costs of such a plan should be reflected in account 08, a subaccount for increasing the cost of fixed assets. Wiring used:
The grounds for increasing the initial cost of fixed assets of a non-financial asset are prescribed in.
You cannot change the primary value of a non-financial asset that would otherwise be included on the company’s balance sheet.
Costs for a specific KOSGU code are charged taking into account the economic essence of the operations. The article that talks about increasing value indicators is article 310.
If the annual average
The cost of non-current and current assets is reflected in the balance sheet, which is compiled at the end of the period. Each change is analyzed by determining the average annual cost.
It is necessary to distribute the value of the company's assets at the beginning and end of the year, based on the balance sheet data. Reflect the result in line 300.
The average annual cost is calculated as follows:
A1 is an indicator of the value of the company’s assets at the beginning of the period.
A2 – cost indicator at the end of the period.
You need to add up the data on lines 300 at the beginning and end of the period. Divide the result by 2 and get the average annual value of the company's assets. The indicator of financial statements for earlier periods is calculated in the same way.
This way you can analyze how the composition of the enterprise’s property changes and determine the reason for the change. Necessary management decisions regarding the organization's resources can also be made.
Sale of fixed assets with zero book value
When the OS is completely worn out, there is no residual value. This means that revenue will be income.
If the sale of a fixed asset is carried out at a cost that is lower than the book value, then questions may arise from the tax authority as to why the market price was not set.
If the fixed assets are fully depreciated, then the company can sell them at any cost.
How is the write-off carried out? Residual value refers to other expenses, proceeds from sale - to other profit. The results of such business transactions can then be determined.
In national standards, proceeds from the sale of fixed assets and other assets are recognized in other income according to the classification and costs associated with the sale, disposal and write-off of fixed assets.
If such values are not related, then simply write off the value of the disposed property assets as other expenses.
If during operations for the sale of fixed assets there are both profits and costs, which are interrelated, then income is reflected in the reporting of financial results minus costs that relate to such profits if:
From the sale of fixed assets, it is allowed to reflect not income and expenses separately, but only the resulting profits and losses.
Fixed assets are assets that must be correctly reflected in accounting registers. But as an accountant, you also need to know what book value is.
We looked at how such OS cost indicators are determined. For more detailed information, please refer to the regulatory documentation that is valid in the Russian Federation.
Instructions
As a rule, leasing means providing an object for temporary use without transferring ownership rights, which is why the principal is on the balance sheet of the lessor. If you are, you must charge depreciation monthly. Reflect the amount of deductions on 02 “Depreciation of fixed assets”, to which 91 accounts “Other expenses” are credited. Record lease payments on account 76 “Settlements with debtors” in correspondence with 91.
If you are a tenant, then reflect the leased property on off-balance sheet account 001. And account for the amounts of payments under the agreement on account 19, opening a credited account 76 for it.
In the balance sheet (unified form No. 1), reflect the amount of fixed assets on line 120, even if you transferred them to another person under a lease agreement.
If you are a lessor, indicate the transaction for the transfer of objects in the appendix to the accounting (unified form No. 5). Write the amount on the second page of the form, and indicate the amount of depreciation charges there.
If you are a tenant, then also indicate the leased fixed assets in the application, only in the line “Received fixed assets for rent.”
In tax accounting, reflect transactions under the lease agreement. If you are a lessor, then include the amount of rental payments in other operating income, that is, it will increase the tax amount. If you are a tenant, include payments in production costs, that is, they will reduce the tax base.
Helpful advice
When transferring a fixed asset under a lease agreement, its inventory number must be retained. The tenant must make a note about the rental on the card. During the inventory, such objects are taken into account.
Sources:
- lease on balance sheet
The rental rate is the estimated market rate for the use of specialized properties at which these properties would be rented. When determining the market rate and calculating the rent, take into account the main features that are associated with the specifics of a particular property.
Instructions
Establish the quantitative and qualitative properties of the property whose rental you are assessing. Gather detailed information about the property being appraised through a visual inspection. Also, analyze the information provided to you by the customer. To analyze an object, evaluate the following parameters:
Location of the property being assessed;
Information regarding the current use of the property;
Various encumbrances and property rights that are associated with the object;
Physical characteristics of the property.
Next, analyze the current state of the market and other factors that externally influence the amount of rent. At this step, collect all the information about the pricing factors that influence the level of the market value of the property. Collect data in the following areas:
Socio-economic situation in the area where the facility is located;
Macroeconomic factors;
The situation in the relevant market sector and the patterns of its development.
Analyze how the most effective use of the property being assessed can be organized. Draw a conclusion about the most effective option for using the valuation object, based on the information you have collected and taking into account all the existing and specific features of the valuation object itself. Also consider the typical uses of similar properties.
Apply different approaches to assessing rent levels. With this in mind, consider the applications of three standard approaches to valuation: income, cost and comparative. Select the most appropriate approach (or several of them) and make rental payments according to the selected method.
Video on the topic
Some organizations use rented equipment to produce products. This helps the company save on depreciation charges, property taxes and costs associated with the purchase of fixed assets. There are also advantages on the part of the lessor, because he receives income from this property in the form of rental payments. The lease of property must be formalized with reference to the Tax Code.
Instructions
Document any relationship with counterparties in the form of a legal document - an agreement that regulates and obliges the parties to comply with certain conditions and rights. To transfer equipment to a second party, draw up a rental agreement. First of all, indicate the subject of the transaction (fixed asset), the amount of the monthly rent, and the lease term. Here you also write down the conditions and rights, for example, who carries out installation and repairs. Create a monthly payment schedule.
If you are transferring property that you previously rented yourself or is leased, you will have to ask permission from the first lessor. Provide permission in writing.
If the fixed asset is insured, then its rental must be discussed with the insurance company, otherwise you will not be able to receive insurance payments.
Be sure to fill out the acceptance certificate, since without this document the contract is considered unfulfilled. Draw up an act in any form. Be sure to indicate in it: names of the parties, details; rental period of the property; name of the equipment (according to or instructions); cost of rental services. When drawing up the document, refer to the lease agreement. Sign the deed, affix the organization’s seal and give the document to the tenant for signature.
In accounting, reflect the lease of your property as follows: - D76 - K91 - reflects the amount of debt for the lease of property; - D91 - K02 (69, 70.71) - costs for equipment transferred under the lease agreement are written off; - D91 - K68 - accrued VAT on equipment rental; - D51 (50) - K76 – receipt from the lessee is reflected.
One area of accounting is leasing transactions. Often, specialists have questions when completing rental transactions. To do this, you need to take into account the special nuances of working with company accounts.
- Purpose of the article: Displaying information about available land plots, residual value of machinery and equipment, buildings, etc.
- Line number in the balance sheet: 1150.
- Account number according to the chart of accounts: Debit balance - credit balance.
Note from the author! Line 1150 can display information about the debit balance of the account for subaccounts 01-04 (in terms of fixed assets) and the debit balance of the account. The company makes the decision to include data independently (if the data is unimportant, the balances can be displayed on line 1190).
Fixed assets are understood as assets of an organization intended for long-term use for the purposes of the company.
According to the accounting rules, in order to accept acquired assets on the balance sheet as fixed assets, certain conditions must be simultaneously met:
- Asset purpose:
production of company products, performance of work, services;
use for management needs;
leasing - transfer of an asset for temporary use and possession to third parties or temporary use.
- The useful life of the object is more than 12 months or during the operating cycle (when the cycle is more than a year).
- When purchasing an asset, the company does not have the goal of further resale of the object.
- The use of an asset affects the company's income: the asset's ability generates economic benefits for the firm with continued use.
Fixed assets are expensive objects used by the company for a long time:
- buildings, structures;
- production equipment (for example, machines);
- control devices and computer technology;
- transport;
- expensive household equipment;
- livestock;
- perennial plantings;
- natural resources: land, water, etc.
Line 1150 - balance sheet asset: this displays the residual value of non-current assets - fixed assets (initial cost minus accrued depreciation) as of December 31 of the financial year. For non-depreciable property, the original cost of the item is displayed.
The final figure in accounting should be reflected as the final debit balance of account 01 minus the credit balance of account 02.
The reporting displays information as of the current period, December 31 of the previous year, and December 31 of the year preceding the previous one.
Cost of fixed assets
The initial cost of assets is the total cost of all costs incurred to acquire an object or bring it into operation. The cost of objects depends on the methods of obtaining:
- purchasing finished equipment from a supplier using company funds;
- contribution to the authorized capital of the company;
- free of charge (the initial cost is based on market prices);
- creation of the facility by the enterprise itself (in addition, the consumption of materials and wages of employees will be taken into account).
A change in the initial value is possible in cases of revaluation of assets, additional equipment, reconstruction, measures to modernize assets and partial liquidation.
According to PBU, companies have the right to revalue fixed assets at the end of the reporting period (price indexation or calculation of replacement price based on market prices).
Practical examples of capitalization of fixed assets
Example 1
LLC "Medved" purchased a machine worth 250 thousand rubles. (including VAT - 38135.59). The price included additional costs for transporting the machine and installing it at the workplace.
All transactions are reflected in the accounting records of the LLC with the following entries:
RUB 211,864.41 - accounting for the costs of acquiring an asset (transportation and installation are carried out by the seller and are included in the price).
RUB 38,135.59 - input VAT is displayed.
211864.41 rub. - the initial cost of the equipment was formed, the machine was put into operation.
RUB 38,135.59 - input VAT is subject to deduction.
Example 2
A manufacturing company decided to create a new warehouse for storing materials and goods. The construction of the building was carried out by the company’s workers, the final cost of the work according to the estimate was 10 million rubles.
The accounting transactions show:
Dt08.03 Kt60,10,70, 69, etc.
10 million rubles - the actual costs of building a warehouse are taken into account (salaries of employees involved in construction, insurance contributions from wages, cost of materials used (according to the act of writing off inventories), costs for additional services of contractors (for example, drawing up estimate documentation), etc.) .
Dt01 Kt08.03
10 million rub. - a new warehouse building was registered and put into operation
Normative base
Information on the residual value of the company's existing fixed assets is taken into account in accounting in accordance with PBU 6/01, approved by order of the Ministry of Finance of the Russian Federation dated March 30, 2001 N 26n.
Common entries in accounting for fixed assets.
- Formation of the initial cost of fixed assets, commissioning of equipment
- Write-off of residual value upon disposal of fixed assets (for example, upon sale or write-off when switching to more modern equipment)
- Calculation of depreciation charges
Dt20 (23, 25, 26, 29) Kt 02 - accruals for objects depending on production.
- Write-off of accrued depreciation upon disposal of fixed assets
- Depreciation charges when revaluing objects
- Depreciation charges on assets provided for temporary use to counterparties
