Depreciation of fixed assets is charged monthly. Methods and methods of depreciation calculation: how to choose the best option? Example of straight-line depreciation
Depreciation is the gradual transfer of costs incurred for the purchase or construction of fixed assets to the cost of the finished product. In other words, with its help, the money that was spent on the construction or purchase of property is compensated.
Depreciation deductions are made over a long period - throughout the entire time of the practical operation of the property: from putting it on the balance sheet of the enterprise in connection with its commissioning to deregistration. The procedure for depreciation charges is approved by Article 259 of the Tax Code of the Russian Federation.
There are four methods for calculating depreciation, one of which is linear, the rest are non-linear. Due to its simplicity, the linear method is the most widely used in practice.
Straight-line method of depreciation of fixed assets
The straight-line method of depreciation involves writing off the cost of a fixed asset in the same proportional parts throughout the entire period of its use.
What objects does it apply to?
Each organization has the right to independently choose the method of writing off depreciation.
Objects of fixed assets are divided into 10 cushioning groups depending on the period of their operation. Without fail, the straight-line method of depreciation must be applied to buildings, structures and transmission devices belonging to three groups:
- Group VII - objects with a period of operation of 20-25 years;
- XI group - objects with a period of operation of 25-30 years;
- X group - objects with a period of operation of more than 30 years.
For the rest of the objects, it is allowed to apply any method of depreciation at the choice of the organization, fixed in the order on accounting policy.
The straight-line method of depreciation can be used both for new property and for objects that were previously in use (operation).
IMPORTANT! Until recently, the chosen depreciation principle could not be changed to another throughout the entire period of deductions for this object. From January 01, 2014, the organization has the right to make the transition from linear method for linear once every five years. For the reverse transition - from linear to non-linear - there are no time limits, it is allowed to do this at any time, after amending the provision on the accounting policy of the enterprise.
Video - methods for calculating depreciation of fixed assets:
How to calculate the depreciation of fixed assets using the straight-line method
To determine the amount of monthly depreciation deductions in a linear way, it is necessary to know the primary cost of the object, its operational life and calculate the depreciation rate.
1. The primary cost of the object
The basis for the calculation is the primary cost of the object, which is calculated by summing up all the costs of its purchase or construction. If a revaluation of the value of the property was carried out, then such an indicator as the replacement cost is used for the calculation.
2. Operating period
The operating period is established by studying the classification list of fixed assets, differentiating them into depreciation groups. If the object is not recorded in the list, then the period of its operation is assigned by the organization depending on:
- predicted time of use;
- expected physical wear;
- expected operating conditions.
3. Depreciation rate formula
The annual depreciation rate is expressed as a percentage of the primary (replacement) value of the property and is calculated using the formula:
K \u003d (1: n) * 100%,
where K is the annual depreciation rate;
n is the service life in years.
If you need to know monthly rate depreciation, then the result is divided by 12 (the number of months in a year).
4. Formula for calculating depreciation
With the straight-line depreciation method, the calculation formula is:
A \u003d C * K / 12,
where A is the amount of monthly depreciation;
C - the primary cost of the property;
K - depreciation rate calculated according to the formula in the 3rd paragraph.
Depreciation order
With a uniform depreciation calculation, they are guided by the general rules for the product of depreciation deductions, namely:
- it is necessary to charge depreciation from the 1st day of the month following the month of putting this property on the balance sheet of the enterprise;
- make depreciation deductions regardless of financial results;
- make depreciation deductions every month and take them into account in the corresponding tax period;
- the grounds for suspension of depreciation deductions are considered to be the conservation of the object for a period of 3 months or its long-term repair (more than a year). Deductions are renewed immediately after the return to service;
- depreciation deductions cease from the 1st day of the month following the month of write-off for depreciation, withdrawal from the balance sheet or loss of ownership of this property.
Advantages and disadvantages of the linear method
Main advantages straight line depreciation method:
- Ease of calculation. The calculation of the amount of deductions must be made only once at the beginning of the operation of the property. The amount received will be the same for the entire period of operation.
- Accurate accounting writing off the value of the property. Depreciation deductions occur for each specific object (unlike non-linear methods, where depreciation is charged on the residual value of all objects of the depreciation group).
- Equal transfer of costs at cost. With non-linear methods, depreciation is greater in the initial period than in the subsequent one (write-off occurs in descending order).
The linear method is convenient to use in cases where it is planned that the object will bring the same profit during the entire period of its use.
Main disadvantages linear method:
The method is inappropriate to apply to equipment subject to rapid obsolescence, since the proportional write-off of its cost does not provide the proper concentration of resources needed to replace it.
Production equipment is characterized by a decrease in productivity with an increase in the number of years of operation. As a result, it will require additional costs for maintenance and repair, due to breakdowns and failure. Meanwhile, depreciation will be written off evenly, in the same amounts as at the beginning of operation, since the linear method does not provide otherwise.
For enterprises planning to quickly update production assets, it will be more convenient to use non-linear methods.
The cumulative amount of property tax over the entire life of the property, to which the straight-line method is applied, will be higher than with non-linear methods.
Example of calculating depreciation using the straight-line method
A fixed asset worth 1,000,000 rubles was placed on the company's balance sheet in March. The accountant determined that its operational life, according to differentiation by depreciation groups, would be 10 years.
The procedure for calculating depreciation using the straight-line method for this example:
- We determine the annual depreciation rate: K \u003d 1/10 * 100% \u003d 10%.
- The monthly depreciation rate will be: 10%/12 = 0.83%.
- Determine the amount of monthly depreciation:
1,000,000 * 10% / 12 \u003d 8333 rubles.
- The amount of depreciation deductions for the year of operation is:
1,000,000 rubles / 10 years = 100,000 rubles.
Thus, using the straight-line method, depreciation must be charged from April in the amount of 8333 rubles per month.
Depreciation of used property
Often, objects that were in use fall into the disposal of the organization, for example:
- objects purchased in not new condition;
- property received as a contribution to the authorized capital;
- fixed assets transferred to the enterprise on the basis of succession after the reorganization.
The scheme and procedure for accruing depreciation on a straight-line basis for such objects will be the same as with new property. The only difference for used property, plant and equipment is the calculation of the useful life. In order to determine it, you need to subtract the number of years (months) of its actual use from the service life established by the previous owner.
conclusions
The straight-line method of depreciation assumes that the physical depreciation of property occurs evenly throughout the entire operational period. This mainly applies to stationary structures, which do not wear out and become obsolete as quickly as equipment.
If it is impossible to accurately determine the rate of depreciation of property, then the linear method will be the most convenient and simple. Also, this method is suitable if the company acquires property for a long period of operation and does not plan to quickly replace it.
Video - the main points when calculating depreciation, examples of accounting entries:
Before considering what depreciation of fixed assets is, it is worth making a small historical digression. Some elements of accounting, reminiscent of depreciation, are already found in the Venetian and Florentine ledgers of the 15th-16th centuries. It is believed that it was there and then that the origins of this economic concept were formed. However, for a long time these accounting elements had no systematics.
regular part accounting depreciation first becomes in England in the 19th century. This was facilitated by the rapid growth of the railway industry. Construction required significant investments, for which third-party equity holders were involved - shareholders. At that time, all expenses were written off at the time they were incurred. Because of this, incredible costs were fixed at the very beginning of construction, and equally impressive profits at the completion stage.
Naturally, passive shareholders began to claim dividends from this profit. The active shareholders, the real owners, tried to spend part of the income on renovation - the renewal of deteriorating property. This is what gave rise to such two closely related concepts as “wear and tear” and “amortization” as systemic ones.
Depreciation and depreciation charges
The economic essence of depreciation
Depreciation and amortization were treated and are treated as a kind of one system. The classical view of depreciation, as a fund, provided for its division into two parts - renovation and depreciation. The first was created as a reserve to replace old property. The second accumulated funds intended for major repairs. It was she who was understood at one time as depreciation.
As development progressed, various interpretations of wear were justified. The concept of P. Samuelson, S.L. Brew and K.R. McConnell defined the essence of depreciation in the monetary value of the decrease in the value of consumed capital. The concept of J. Bonbright represented depreciation as a reserved operating expense intended to reduce/eliminate the physical depreciation of fixed assets.
The concept of V.Ya. Gorfinkel provided for the understanding of depreciation as a cost compensation for the depreciation of fixed assets, carried out by including part of their value in the form of an item of production costs with the provision of a complete replacement of property upon its disposal.
These concepts formed the basis of the methods of price and real calculation of depreciation of fixed assets. On the basis of these methods, the system of unified centralized wear standards that still exists today has arisen. property objects- depreciation rates.
At the same time, it should be understood that there is still no ideal wear concept that meets all the requirements. This is due to the fact that the concepts of "wear and tear" and "amortization" are most often assigned the same identity. In fact, their meaning is quite different, and there are two reasons for this.
The first is that the accrual of accounting depreciation almost never coincides with the actual physical and moral depreciation of fixed assets. The temporal component of accounting is subject to artificial periodicity, the same component of the natural accumulation of depreciation is determined by non-linear factors.
Moral depreciation is all the more worth being isolated, since it is practically impossible to take into account in the accounting registers the prospect of changing the model range in advance.
The second is that the depreciation acceleration and deceleration factors used in accounting schemes do not affect the actual accumulation of physical depreciation, and the stopped depreciation calculation for non-functioning objects does not stop their depreciation.
So, the following definition can be considered the most relevant to the actual content of the term:
Depreciation is a systematic process of gradual transfer of the cost of labor instruments, as they are conditionally depreciated, to the cost of manufactured products (works, services) for accumulation Money, which will be directed to the full or partial reimbursement of these means of labor in the future. In other words, this is the value of the fixed assets of the organization in the distributed monetary form, for re-investment in the fixed production assets.
Depreciation policy
The efficiency of using the accumulated funds for the renewal of property capital depends on the correctness of the solution of several methodological problems:
- Determination of the required volume of property at the stage of its formation;
- Identification of the degree and dynamics of the influence of scientific and technological progress;
- Calculation of the effective functioning of the property;
- Determination of suitable depreciation methods for accounting purposes, allowing for the renewal of fixed assets (for accounting) and optimizing the cost of paying taxes (for tax accounting) taking into account the constantly existing need to minimize costs.
The solution of these problems is, in fact, an expression of the depreciation policy of the enterprise. After all, the only source of data on the physical and moral condition of fixed assets is depreciation, despite its aphorism regarding real wear and tear.
The theoretical and methodological basis of the concept of the organization's depreciation policy are:
- Selection and justification for the use of accelerated or delayed depreciation for tax accounting purposes;
- Structuring the system of depreciation policy arguments as an element of the company's tax and financial policy;
- Creation of a package of organizational and methodological measures for the implementation of these arguments in the activities of organizations;
Principle of rationality
Depreciation deductions are a tool not only for creating reliable reporting on property, costs and financial results of an organization, but also for organizing accounting, as well as a measure of the effectiveness of management activities.
Accordingly, the principle of rationality is that the costs of accounting should be significantly lower than the economic effect of accounting information. In addition, it is assumed that the procedure for calculating depreciation in accounting should be as close as possible to the procedure for calculating it in tax accounting.
Depreciation procedure
Accounting accounting operations for the accrual and write-off of depreciation is carried out on a synthetic passive account 02 "Depreciation of fixed assets". The credit of account 02 reflects the accrued depreciation on received and operating fixed assets. The debit of account 02 reflects depreciation on retired fixed assets. An approximate list of transactions on account 02 can be presented as follows:
1) Postings for assigning accrued depreciation to cost items:
- Dt 20 - Kt 02 for facilities involved in the main production;
- Dt 26 - Kt 02 for general business facilities;
- Dt 44 - Kt 02 for objects involved in the sales stage.
2) To calculate depreciation for objects leased on a return basis, an accounting entry Dt 91 - Kt 02 is drawn up.
3) accounting entries on disposal of fixed assets (in all cases):
- Dt 01.2 - Kt 01.1 - initial cost;
- Dt 91.2 - Kt 01.2 - residual value;
- Dt 02 - Kt 01.2 - the amount of accumulated depreciation.
The monthly amount of deductions is always 1/12 of the annual rate.
In accordance with PBU, depreciation is temporarily not charged in the following three cases:
- Conservation of the object for more than three months;
- Repair for a period of more than twelve months;
- Reconstruction for a period of more than twelve months.
Depreciation is not charged for the following accounting items of fixed assets:
- Housing stock buildings;
- objects of external improvement and the like;
- productive and draft cattle;
- perennial plantings that have not reached the operational age;
- printed publications (books, albums, brochures);
- film fund and production facilities
- exhibits of the animal world;
- land;
- property non-profit organizations.
Methods for calculating depreciation in accounting
Depreciation can be charged only in those ways that are allowed to be used. IN Russian Federation The following methods of depreciation of fixed assets are provided for:
Linear way
Main advantage linear way- its simplicity. The annual amount of depreciation deductions is set on the basis of the initial cost of the object and the depreciation rate calculated according to the useful life. When calculating depreciation using this method, use the formula:
A \u003d na * OSp (b): 100
Where:
OSp(b) - the initial cost of fixed assets, rub.
The straight-line method of accrual is suitable for those objects that are involved in the same type and uniform amount of work throughout the entire period of their operation. In fact, this is very rare, and the functioning of the equipment at the end of its service life is characterized by a decrease in quality.
The solution to this problem is the accelerated depreciation mechanism. Accelerated depreciation is a method of transferring value to cost items more quickly. Its application allows to accelerate the introduction of new, more efficient facilities. In accounting accelerated depreciation applicable only if depreciation is calculated by reducing the balance.
Decreasing (reducing) balance method
Balance reduction method involves the calculation of the annual amount of deductions based on the residual value at the beginning of the year, the depreciation rate and the acceleration factor. This coefficient cannot take on a value greater than 3. When calculating depreciation by this method, the following formula is used:
Ag \u003d (OSo - Ag - 1) * na * K
Where:
Аg is the annual amount of deductions in (g) year, rub.;
OSo - the residual value of the fixed asset at the beginning of the reporting year, rubles;
Ag - 1 - the amount of deductions in (g -1) year, rub.;
na – annual depreciation rate, %;
K is the acceleration factor.
According to the PBU of the organization, in order to calculate depreciation by reducing the balance, it is necessary to determine the size of the acceleration factor and reflect it in the order on accounting policy.
Consider an example of calculating the amount of depreciation by this method.
The enterprise purchased a diesel generator worth 67,300 rubles. S.P.I. was set to 4 years. The accounting policy is set to:
- acceleration factor = 1.5.
- condition that in Last year all residual value is written off in equal installments.
100% : 4 years = 25% calculated annual rate.
25% * 1.5 = 37.5% normal with acceleration factor.
67,300 * 37.5% = 25,237.5 rubles 1st year depreciation amount
25,237.5: 12 months = 2,103.125 rubles. monthly in year 1
67,300 - 25,237.5 = 42,062.5 rubles. residual value at the end of the 1st year
42,062.5 * 37.5% = 15,773.44 rubles 2nd year depreciation amount
15,773.44: 12 = 1,314.45 rubles. monthly in year 2
42,062.5 - 15,773.44 \u003d 26,289.06 rubles. residual value at the end of the 2nd year
26,289.06 * 37.5% = 9,858.4 rubles 3rd year depreciation amount
9,858.4: 12 = 821.53 rubles monthly in year 3
26,289.06 - 9,858.4 = 16,430.66 rubles. residual value at the end of the 3rd year
16,430.66: 12 = 1,369.22 rubles monthly write-off in the last, 4th year
Cumulative (regressive) method
The cumulative way method of writing off the cost by the sum of the numbers of years of the service life (S.P.I.), lies in the fact that the annual amount of deductions is calculated at the initial cost and the ratio, in the numerator of which is the number of years until the end of S.P.I. object, and in the denominator - the sum of the numbers over the years. When calculating depreciation using this method, use the formula:
A \u003d Osp (b) * (Ti: Tch)
Where:
A - the annual amount of depreciation, rub.;
OSp(b) - initial cost of fixed assets, rub.;
Ti - the number of years remaining until the end of the operational period;
Tch - the sum of the numbers of years of the operational period.
The essence of the method is in the following example. The company purchased a machine worth 50,000 rubles. STI machine - 5 years. Let's determine the sum of the numbers of years of the SPI of the machine: 1+2+3+4+5=15 (cumulative number). In each year of operation, the following calculation of depreciation of fixed assets will be made:
1 year 50,000 * 5/15 = 16,667 rubles;
2 year 50,000 * 4/15 = 13,333 rubles;
3 year 50,000 * 3/15 = 10,000 rubles;
4 year 50,000 * 2/15 = 6,667 rubles;
Year 5 50,000 * 1/15 = 3,333 rubles
Productive way
Productive, it's the same way write-offs in proportion to the volume of production (works) based on the natural indicator of the volume of production in reporting period and the ratio of the initial cost and the planned output for the entire S.P.I. object. When calculating depreciation using this method, use the formula:
A \u003d Qi * (OSp: Qn)
Where:
A - the annual amount of depreciation, rub.;
Qi is the volume of products (works) in the reporting year, rubles;
OSp - initial cost at the beginning of the reporting year, rubles;
Qn - the expected volume of production (work) for the entire FDI of the fixed asset object, rub.
An example of calculations in this way.
The company purchased equipment worth 125,000 rubles. with a service life of 6 years. The planned production output by years looks like this:
first year = 1680,
second year = 1400;
third year = 1260;
fourth year = 980;
fifth year = 880;
sixth year = 800;
only 7000 units.
The results of calculations in this example are easiest to present in the form of a table:
| Year | Production volume, units | Depreciation deductions per unit of production, rub. | Annual amount of depreciation charges, rub. | Depreciated part, % |
|
1 2 3 4 5 6 Total |
1680 1400 1260 980 880 800 7000 |
17,86 17,86 17,86 17,86 17,86 17,86 |
30 005 25 004 22 504 17 503 15 717 14 267 125 000 |
24,0 20,0 18,0 14,0 12,6 11,4 100 |
By itself, the productive method most accurately reflects reality. Its use gives the most accurate reflection of product costs. The more intensively the equipment is involved, the greater the amount of accrued depreciation. By the time the physical depreciation of the object reaches one hundred percent, the total depreciation charges on it will also be equal to one hundred percent of the original cost of the object. At the same time, like other methods, the productive one cannot take into account the obsolescence of equipment.
A significant obstacle to its widespread use is the sharp increase in the labor intensity of accounting work. The presented methods of depreciation are used for accounting purposes.
However, depreciation is also charged for tax purposes, and tax legislation provides for slightly different ways of accounting for depreciation.
Methods for calculating depreciation in tax accounting
The Tax Code of the Russian Federation assumes that depreciation for tax purposes is carried out either by a linear or non-linear method. In this case, the method chosen by the enterprise is applied to all property of the organization.
Line method
At linear method the amount of depreciation accrued per month is considered as the product of the initial cost and the depreciation rate established for this object. The calculation of the depreciation rate for each object is made according to the formula:
An= * 100%
Where:
An – depreciation rate, %;
s - S.P.I. property object, months
The linear method is necessarily applied to buildings, structures and transmission devices included in depreciation groups 8-10, regardless of which method is adopted in the organization. Thus, since in addition to these categories of fixed assets, these groups include a machine park, transport and other equipment, for them the organization must apply the method (linear or non-linear) that is approved by the order on the accounting policy of the enterprise.
Nonlinear Method
Unlike linear, calculated traditional use to every object nonlinear method assumes that the calculation is carried out as a whole for the depreciation group. This means that for each group the total balance is calculated on the first day of the month for which depreciation is calculated.
The total balance is a unit of the formula and is recalculated monthly by reducing the amount of depreciation accrued in the previous month. It should be remembered that there is an exception for property of 8-10 groups, therefore, when calculating the total balance for these groups, the subgroups “Buildings”, “Constructions” and “Transmission devices” included in them should be excluded from the calculation.
Ag= Bg* N/100
Where:
Ag - depreciation for the group per month, rubles;
Bg – total balance for the group as of the 1st day of the month, rub.;
N - the rate of depreciation for the group (subgroup).
The monthly depreciation rates established by the Tax Code are presented in the table:
| Group | Depreciation rate |
| 1 | 14,3 |
| 2 | 8,8 |
| 3 | 5,6 |
| 4 | 3,8 |
| 5 | 2,7 |
| 6 | 1,8 |
| 7 | 1,3 |
| 8* | 1,0 |
| 9* | 0,8 |
| 10* | 0,7 |
* minus the cost of property belonging to the subgroups "Buildings", "Constructions" and "Transmission devices"
From the month before which the total value of the objects of the group becomes less than 20,000 rubles, the organization has the right to liquidate this group (the corresponding subgroup in the case of 8-10 groups) with the amount of the total balance attributable to the non-operating expenses item in the current accounting period.
In the case of operation of fixed assets in particularly difficult conditions and / or with increased shifts, the organization has the right to use the increase factor to the depreciation rate. This coefficient cannot be more than 2. It is important to remember that since the beginning of 2014 it is forbidden to apply increasing coefficients for several reasons, in addition, the application of these coefficients is possible only in relation to property accepted on the balance sheet before 01/01/2014.
For a number of objects listed in clause 2 of article 259.3, the organization has the right to apply a correction factor with a value not higher than 3. However, it is prohibited to apply these factors to property of 1, 2 and 3 depreciation groups if depreciation is calculated for them using a non-linear method.
The legislation also provides for the possibility of applying by the organization of norms, the value of which is lower than those established by the tax code. This is determined for each specific item of fixed assets, taking into account the peculiarities of the business process. Those objects in respect of which increasing or decreasing coefficients are applied should be divided into subgroups as part of their depreciation groups. The procedure for applying the coefficients is fixed in the order on the accounting policy of the organization for tax purposes.
The beginning of 2014 can be called significant. This is due to the fact that this year organizations that have decided to switch from a non-linear method to a linear one can make this transition for the first time. The tax code sets a limit for such a transition - once every five years. Consequently, organizations that chose the non-linear method in 2009 can change it to the linear method only from 01/01/2014.
For the transition "in the opposite direction", such a restriction is not established and organizations have the right to switch from the linear method to the non-linear one in the manner established for amending the order on accounting policies.
Finally, the controversial interpretation of legislative norms related to the moment when depreciation began to be calculated for those objects, the ownership of which requires state registration, is finally being eliminated.
An unambiguous interpretation is fixed in the code - this moment in relation to an object is recognized as the moment of its commissioning, regardless of the date of its state registration. In addition, in relation to companies that began to apply this rule from January 2013 in relation to property put into operation before 12/01/2012, a legislative decision was made on "tax forgiveness" (Article 3.1 of the Federal Law of 11/29/2012 N 206-FZ ( edition of 23.07.2013).
18. The procedure for calculating and accounting for depreciation of fixed assets.
The procedure for calculating depreciation is regulated by the Instruction on the procedure for calculating depreciation of fixed assets and intangible assets, approved by the decrees of the Ministry of Economy, the Ministry of Finance, the Ministry of Statistics and Analysis of the Republic of Belarus dated March 30, 2004 No. 87/55/33/5 (as amended).
Depreciation is the process of transferring the value of fixed assets to the cost of products (works, services) produced with their use in the course of entrepreneurial activity.
To calculate depreciation, it is necessary to determine the depreciable cost, useful life, useful life.
Depreciable cost is the cost at which fixed assets are recorded in accounting records. If fixed assets are used in entrepreneurial activities, then the depreciable cost is included in parts in the costs of production and sale of products (works, services) or in distribution costs. If fixed assets are not used in entrepreneurial activities, then they are partly included in non-operating expenses of a commercial organization or repaid at the expense of earmarked income non-profit organization during the statutory service life.
The depreciable cost is:
the initial cost of newly commissioned facilities;
residual value of objects in operation upon transition to a new depreciation policy;
under-depreciated (residual) cost when changing the methods of depreciation calculation.
The depreciable cost of fixed assets changes in the following cases:
modernization of equipment, technical re-equipment, additional equipment, reconstruction, completion, overhaul of the railway track with the replacement of all elements of the superstructure of the track, overhaul of electrical and heating network facilities (wire, pipeline, supports, chambers, channels), main electrical equipment with the replacement of all other elements, the cost of which exceeds 30% of the depreciable cost of each item, to new ones;
carrying out revaluation of fixed assets by decision of the Government of the Republic of Belarus.
The depreciable cost is changed by the decision of the commission, approved by the head or the owner from among the specialists of the relevant services.
The depreciation rate is the share (in percent) of the cost of an object that is to be included in the costs of production and handling with a specified frequency over the useful life or attributable to the appropriate sources over the established standard service life.
Service life is the period during which an item of fixed assets retains its consumer properties.
Normative service life - the period during which the loss of value of fixed assets not used in entrepreneurial activity, recognized to serve for the purposes of the organization, is established by regulatory legal acts.
Useful life is the expected or estimated period of operation of fixed assets in the course of an organization's business activities.
The objects of depreciation are fixed assets used and not used in business activities; for individual entrepreneurs - only those used in entrepreneurial activities.
Depreciable fixed assets include:
buildings of special, high, medium and low capital, including residential buildings;
structures of special, high, medium and low capital, including transmission devices (computer and communication networks, capital roads, investments in land improvement);
machines, mechanisms, equipment, including communication facilities, measuring and control instruments and devices, working, breeding and productive livestock;
computer equipment, office equipment, production and household equipment, tools and accessories, gas and firearms, perennial plantings, other fixed assets;
vehicles (road, water, rail transport);
aircraft and aircraft engines of civil aviation;
fixed assets of mining industries.
The objects of depreciation are not:
land and other objects of nature management;
library funds, film funds;
museum and art values, scenic means;
buildings, structures that are monuments of architecture and art, included in the state list of historical and cultural values of Belarus;
fixed assets government organizations who are abroad;
armed, military special equipment and property located in the Armed Forces of the Republic of Belarus, other troops and military formations.
Depreciation is not charged for the following items:
in the stage of completion, additional equipment, reconstruction and partial liquidation;
in reserve;
on conservation for a period of less than 1 year.
The standard service life and useful life are determined by each balance holder and can be reviewed with mandatory reflection in the accounting policy in cases of modernization, retrofitting, reconstruction, or detection of an error.
The standard service life is determined according to the name, code and temporary republican classifier of fixed assets. According to the standard period, the depreciation rate is determined. If more than two correction factors are applied to the same norm (the influence of the aggressiveness of the environment, deviations from the established basic modes of operation and other conditions), then the norm is determined by the formula
Where NAg - adjusted annual rate of depreciation of fixed assets;
NAU - established depreciation rate;
-coefficients approved by the positions of the current classifier;
T - the number of applied correction factors.
Depreciation is charged monthly. For newly commissioned fixed assets, depreciation is charged from the first day of the month following the month of their commissioning. Depreciation is terminated for retired fixed assets - from the first day of the month following the month of full inclusion of their value in the costs of production and circulation.
The following depreciation methods are currently in use:
linear,
nonlinear,
productive.
The straight-line method is a straight-line method of depreciation over the entire standard service life or useful life. With the straight-line method, the annual depreciation amount is determined
Ag = Ca × HAU, (3)
Where Sa– depreciable cost; Ag– annual depreciation; NAU- set depreciation rate.
Am \u003d Ar / 12,(4)
Where Am- monthly depreciation.
If an organization uses non-linear depreciation methods, then it should be remembered that in the first years the largest amount of depreciation will be charged.
The objects of application of the non-linear method are: transmission devices, workers, power machines and mechanisms, equipment, computer and office equipment, vehicles and other objects involved in the production process of products (works, services), including antennas, runways, measuring and regulating instruments and devices, tools, working cattle, leasing objects.
The non-linear depreciation method does not apply to:
for machines, equipment and vehicles with a standard service life of up to 3 years, cars (except for special ones);
for certain types of civil aviation equipment, the useful life of which is determined based on the established resources;
unique machinery and equipment intended for use only in certain types of testing and production of a limited type of specific product;
objects of recreation, leisure, entertainment.
In the non-linear method, two methods of depreciation are used:
decreasing balance method;
method by the sum of the numbers of years.
Under the diminishing balance method, an acceleration factor of up to 2.5 times is applied.
Using the sum of years method, depreciation is calculated as follows:
add up the sum of the numbers of years (by useful life). For example, for a period of 5 years, the amount is determined: 1+2+3+4+5 = 15 or by the formula
Where sleep- useful life.
Year 1 = 5/15 of depreciable cost, Year 2 = 4/15 etc.
Am \u003d Ar / 12,(6)
Where Am - depreciation monthly.
The declining balance method uses the formula for calculating annual depreciation for the first year of operation
(7)
Where Nar- estimated depreciation rate;
Sa- depreciable cost.
Annual depreciation for the 2nd year of operation
(8)
Annual depreciation for the 3rd year of operation
(9)
Productive method - depreciation is calculated based on the depreciable cost and the ratio of physical indicators of the volume of products produced in the current period
,
(10)
Where 
- depreciation per year t;
- forecasted during the life of the facility the volume of production per year t;
t- years of useful life.
To reflect the amounts of accrued depreciation in accounting, a regulating contractual account 02 “Depreciation of fixed assets” is used. The account is passive in relation to the balance. Sub-accounts are opened for the account:
depreciation of own fixed assets;
depreciation of leased fixed assets.
Credit 02 reflects the amount of accrued depreciation for the reporting period, as well as the amount of indexation of depreciation charges, debit 02 - write-off of depreciation upon disposal of fixed assets. Analytical accounting of depreciation charges is carried out in the “Card for calculating depreciation deductions from the value of an object of fixed assets (intangible assets)”, which groups information for calculating depreciation deductions from the value of a separate object of fixed assets and intangible assets. Based on the card data, a development table “Calculation of depreciation of fixed assets (intangible assets)” is compiled. It calculates depreciation by linear, productive and non-linear methods (sections 1, 2, 3), and also section 4 reflects the summary calculation of depreciation for the reporting month as a whole for the organization in the context of corresponding accounts. The calculation data is used to enter information into the registers for accounting for the costs of production of products (works, services), registers of non-operating and operating expenses. Synthetic accounting is carried out in the journal-order No. 10 and the General Ledger - with a journal-order form of accounting; in the turnover sheets for the calculation of depreciation - in an automated form.
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Depreciation accrued on fixed assets used in production activities |
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Depreciation has been accrued on fixed assets that are operated in auxiliary industries - in repair shops, vehicles, water, heat, gas, electricity |
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Depreciation accrued on fixed assets for general production purposes |
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Depreciation accrued on general business fixed assets |
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Depreciation accrued on fixed assets used in the process of capital construction |
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Depreciation accrued on fixed assets that are used in the sale of goods |
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Depreciation accrued on fixed assets used in service industries and farms |
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The amount of accrued depreciation during the revaluation of fixed assets has been adjusted |
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Depreciation accrued on fixed assets leased; for objects that are on conservation, in reserve, idle for more than 3 months, modernization, reconstruction, partial liquidation of the object, technical diagnostics |
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Written off the amount of depreciation on retired fixed assets |
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Depreciation amount written off upon disposal of leased property |
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Depreciation accrued on fixed assets that are not used in business activities |
If the enterprise reveals facts of unlawful reflection in accounting of the amounts of accrued depreciation, then in case of detection of distortions and errors in accounting, a record is made:
1) errors of the current year: Dt 20, 23, 25, 26 - Kt 02, 05; using the “red reversal” method, excessively accrued depreciation amounts are written off;
2) errors of past years: Dt 02, 05 - Kt 92 - overcharged depreciation amounts for previous years; Dt 92 - Kt 02 - additional depreciation for previous years was accrued.
In order to timely ensure economically justified conditions for the reproduction of fixed assets used in entrepreneurial activities, for which the straight-line method of depreciation is applied, current indexation of depreciation charges is allowed. Indexation is performed if the level of inflation on the consumer price index for the previous month to the previous one was at least 2%. When calculating the amount of indexation, the index of price changes for industrial and technical products in relation to December of the previous year is used. The results of indexation in accounting are reflected:
Dt 20, 23, 25, 26 - Kt 84 - the amount of depreciation deductions is reflected monthly;
Dt 84 - Kt 02 - during the revaluation, the amount of depreciation increased by the amount of indexation of depreciation charges.
For the reproduction of fixed assets, organizations form a depreciation fund, which is a source of financing for capital investments for industrial purposes and housing construction. To account for the formation and use of the depreciation fund, an off-balance account 010 (“Amortization fund for the reproduction of fixed assets”) is intended.
The debit of account 010 reflects the formation of an amortization fund (by trade organizations) in the form of depreciation amounts included in the distribution costs of trade and public catering organizations; in non-operating expenses - for leasing operations from organizations-lessors; in the composition of production costs, taking into account general business and commercial expenses of commercial organizations that perform work and provide services, the accounting policy of which provides for the method of accounting for sales by shipment; as part of the full cost of goods sold (works, services) for organizations of other types of activities.
Diversified enterprises form a depreciation fund according to the data of separate accounting of costs by type of activity.
Account 010 credit reflects the use of the fund as a source of capital investment financing. If an enterprise finances funds for the construction of fixed assets for industrial purposes or housing construction and at the same time fully uses the created depreciation fund, then, according to domestic legislation, it receives a benefit in calculating profit and income tax.
The depreciation fund is formed on a monthly basis by including in the total cost of sold products (works, services) the amounts of accrued depreciation, taking into account indexation. For the amount of depreciation deductions for objects participating in the process of capital investments, reflected in the correspondence of accounts: Dt 08 - Kt 02, as well as for the amount of depreciation deductions for objects used in business activities, reflected in the accounting: Dt 91 - Kt 02, no depreciation fund is created .
Enterprises producing products (works, services), when creating an amortization fund, can use the following formula:
The amount of depreciation deductions per month = the total cost of goods sold (works, services) on an accrual basis from the beginning of the year, taking into account commercial expenses (90 - 40, 45, 43, 20, 26, 94 excluding taxes) taking into account general and commercial expenses on an accrual basis from the beginning of the year.
Specific weight = (depreciation allowance, taking into account indexation, reflected as part of the production cost on an accrual basis from the beginning of the year 20, 23, 25, 26 - 02 + depreciation allowance, taking into account indexation, reflected in selling expenses 44 - 02) / (production costs + commercial expenses on an accrual basis from the beginning of the year - depreciation charges accrued by the lessee on leasing objects) 100.
Production costs are the costs of economic elements, which are the sum of turnovers on debit 20, 23, 25, 26, 43, with the exception of internal and intra-factory turnover, which are reflected in the entries:
Dt 20 – Kt 20, 21, 23, 25, 26
Dt 23 – Kt 23, 21, 25, 26
Dt 25 – Kt 25, 21, 23
Dt 26 – Kt 26, 21, 23
Dt 44 - Kt 44, 23
To calculate the formation and use of the depreciation fund, you can apply the following table:
Table 36
Calculation of the depreciation fund
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Initial data for formation depreciation fund |
cumulative |
Full cost produced products |
Odds 5/7 |
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Amount of depreciation |
Indexation of depreciation charges |
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per month |
year to date |
per month | ||||||
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Full cost implemented products |
Sinking fund |
Use of sinking fund |
cumulative |
depreciation fund |
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for investment in production destination |
for housing construction |
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per month |
year to date |
per month |
year to date |
per month |
year to date |
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Accounting for depreciation in terms of lease and leasing.
Depreciation is accrued during the term of the leasing (lease) agreement, regardless of who has the object on the balance sheet. The value of the leasing (lease) object depreciated over the term of the contract is established by the contract as agreed by the parties. In this case, for the term of the contract, depreciation is charged in an amount not exceeding the difference between the contract and redemption value of the object. If the amount of depreciation deductions is not determined by the contract, then depreciation is charged on a straight-line basis, based on the standard service life of the object. Depreciation for individual leased items is accrued based on the useful life established at the upper limit of the range using a straight-line method:
interior items, including office furniture;
objects of recreation, leisure, entertainment;
passenger cars operated as official vehicles, except for taxis;
buildings, structures, transmission devices based on the useful life established in the range from the standard service life of the object to 1/5 of its value.
When importing a leasing object, if the non-resident lessor does not allocate depreciable value, then depreciation is charged from the contract value minus the redemption (residual) value. Depreciation is accrued when renting (leasing):
a) the object is on the balance sheet of the lessor (lessor):
1. lessor - as part of production costs, sales costs or operating expenses;
2. lessor - as part of production costs or operating expenses;
3. lessee (lessee) - as part of production costs, sales costs as a rental (leasing) payment;
b) the object is on the balance sheet of the tenant (lessee):
1. the lessor (lessor) does not charge depreciation;
2. lessee (lessee) - as part of production costs or sales costs.
You purchased some product for a company or firm, then did the formation of the primary cost, determined the period during which the use of the fixed asset product should make a profit and fulfill its goals. You have even chosen a depreciation calculation method (linear, non-linear). But the question remains: "When to charge the depreciation of this object?" The answer to this question is given by the procedure for calculating depreciation on the product of fixed assets.
Need for depreciation
Depreciation occupies an important place in every enterprise. The main purpose of depreciation of fixed assets is the return of funds spent on the purchase of any product. Complete Algorithm
- The acquired material object is accounted for at actual cost;
- During a certain period of useful life, the actual cost is transferred to the cost of selling products due to depreciation charges, as a result of which the cost finished products part of the OS cost is included;
- After the sale of products, the money spent is returned along with the proceeds;
- The returned funds can be used to repair existing property. Thus, due to depreciation, there is a turnover of the state of the company or firm.
OS depreciation does not always occur. This "operation" is not performed for plots of land or other natural resources. Thus, the calculation of depreciation is a lengthy procedure, and it depends on the useful life of fixed assets (the period during which income from products is generated). The main document that has a connection with depreciation is the payroll. With the help of this document, an account assignment (posting in accounting) is made for each month.
Depreciation is calculated in several ways. All these methods belong to two groups:
- Linear way;
- non-linear way.
The non-linear method includes methods:
- Decreasing balance accrual method;
- Write-off method based on the summation of the number of years of useful life of the object;
- The method of writing off the cost in proportion to the amount of work.
In accounting, the depreciation method is selected once for each fixed asset product and does not change again. In tax accounting, in each specific case, the method specified in the tax accounting policy is applied.
Depreciation is not charged for:
- Products whose technical, economic and aesthetic qualities do not change;
- Housing stock;
- Farm animals used for food production (productive livestock);
- Other products that will not be profitable.
The procedure for calculating depreciation deductions
Depreciation charges are calculated on the very first day of the next month, after the month in which the product was accepted for accounting as fixed assets. The end of accrual will be the first day of the month following the month of withdrawal of the product from balance sheet. This process must be terminated in the event of repair or preservation of the object, the period of which is more than three months. Depreciation is charged every month.
The accrual procedure can have some nuances, in particular, certain categories of OS are included here. With regard to accounting estimates, it is much simpler here.
If the fixed asset that is involved in production is fully depreciated (the accrual amount is equal to the primary cost), then the residual value of the fixed asset is zero. The cost in this case is not displayed in the balance sheet.
Throughout the entire period of time in which material value makes a profit (useful life of products), depreciation does not stop.
Important: regardless of the total activity of the firm or company, depreciation deductions for fixed assets are accrued and then displayed in accounting. Reflection in the assessment of accounting occurs with the help of the credit of account 02 “Depreciation of fixed assets”.
Useful life of the object
- The period of useful use of intangible assets in the assessment of accounting is determined by the enterprise. For a specified period by the enterprise, intangible assets must bring profit to the company or firm;
- The enterprise can also determine the period for the OS on its own, but for this it is important to bring this period in accordance with certain norms and standards (Decree of the Government of the Russian Federation dated January 1, 2002 No. 1).
Tip: at that moment, if fixed assets belong to more than one category (several) of depreciation, then you need to choose the period in which the product makes a profit according to the required operating time. Thanks to this, it will be possible to calculate the amount of depreciation for each month.
In order to calculate the depreciation of fixed assets for a certain period, it is necessary to determine the time the product was put into operation and the amount of money that should have been produced. Next, you need to multiply the amount of depreciation for one month by the number of months from the date of commissioning.
In tax accounting, the useful life is set in accordance with the depreciation group number.
Depreciation- the process of gradual transfer of the value of fixed assets to manufactured products (works, services).
Why is it needed: 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 that will later be directed to the reproduction of fixed assets, others consider depreciation as a way of spreading large-scale expenses over periods, according to the accrual principle.
Example: The company works, spends money on production, manufactures products, sells them. After the product is released, its cost is formed, the desired profit is added to the cost, as a result, the price is formed. The costs of fixed assets are to be included in the cost of production on a straight-line basis, because if all costs are written off at a time to the cost price, product prices will increase many times and become uncompetitive.
The depreciation amount is determined monthly, separately for each depreciable property, i.е. for fixed assets subject to depreciation.
The annual amount of depreciation deductions is determined by:
- with the straight-line method - based on the original cost or (current (replacement) cost (in the event of a revaluation) of an item of fixed assets and the depreciation rate calculated based on the useful life of this item;
- with the reducing balance method - based on the residual value of the fixed asset at the beginning of the reporting year and the depreciation rate calculated on the basis of the useful life of this item and a coefficient not higher than 3 established by the organization;
- when the method of writing off the cost by the sum of numbers of years of the useful life - based on the original cost or (current (replacement) value (in the event of a revaluation) of the fixed asset 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.
During the reporting year, depreciation charges on fixed assets are accrued monthly, 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 on fixed assets is accrued evenly during the period of operation of the organization in the reporting year.
With the method of writing off the cost in proportion to the volume of production (work), depreciation is charged based on the natural indicator of the volume of production (work) in the reporting period and the ratio of the initial cost 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, consumer properties of which do not change over time (land plots; objects of nature management; objects classified as museum objects and museum collections, etc.).
- housing stock (if they are not used to generate income)
- objects of external improvement and other similar objects of the road economy
- productive livestock
- perennial plantations that have not reached operational age
- 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, in the performance of work or the provision of services, for the management needs of the organization or for provision for a fee for temporary possession and use or for temporary use
Depreciation starts from the 1st day of the month following the month in which this object was put into operation, stops - from the 1st day of the month following the month when the object's value was fully written off or when this object was removed from the depreciable property.
Depreciation is charged over the useful life of the asset.
Useful life is the period during which the use of fixed assets brings economic benefits (income) to the organization. The useful life of the organization determines independently when accepting an item of fixed assets for accounting.
Accrual of depreciation deductions is suspended in case of transfer of an object by decision of the head of the organization for conservation for a period of more than 3 months, as well as in the period of reconstruction, modernization and overhaul of the facility, lasting more than 12 months.
For fixed assets of non-profit organizations, as well as housing stock of enterprises of housing and communal services, depreciation is charged at the end of the reporting year according to the established depreciation rates. The movement of depreciation amounts on the specified objects is accounted for on a separate off-balance account