How to calculate monthly depreciation expense. Methods for calculating depreciation of fixed assets
9.6. Depreciation deductions and their use in the enterprise
For economic compensation of physical and moral depreciation of fixed assets, their value in the form of depreciation charges is included in the cost of production. In this way, depreciation- this is a gradual transfer of the cost of OPF to manufactured products.
Depreciation deductions are produced by enterprises (organizations) on a monthly basis based on the established depreciation rates and book value of fixed assets for individual groups or inventory items included on the balance sheet of the enterprise (organization).
Depreciation rate represents the annual percentage of repayment of the cost of fixed assets established by the state and determines the amount of annual depreciation charges. In other words, the depreciation rate is the ratio of the sum of annual depreciation charges to the cost of the OPF, expressed as a percentage.
Depreciation rates are established and periodically reviewed by the state; they are the same for all enterprises and organizations, regardless of their forms of ownership and forms of management.
The depreciation policy is integral part general scientific and technical policy of the state. By setting the depreciation rate, the procedure for its calculation and use, the state regulates the pace and nature of reproduction in industries, namely, through the depreciation rate, the rate of depreciation is set, and through it, the rate of renewal of fixed assets. The following features were characteristic of the depreciation system in force in the USSR: unified depreciation rates; straight-line straight-line accrual method; the presence of two depreciation rates - for major repairs and for replacement (renovation); inclusion of depreciation charges in the cost of production; depreciation over the actual life of the means of labor; redistribution by the state of depreciation deductions for renovation between enterprises on a gratuitous basis.
Since 1991, the procedure and norms of depreciation deductions have been significantly changed in accordance with the Decree of the Council of Ministers of the USSR of October 22, 1990 "On uniform norms of depreciation deductions for the full restoration of fixed assets of the national economy."
First, new depreciation rates have been introduced, which for many types of fixed assets differ significantly from the previous ones.
Secondly, depreciation deductions for capital repairs have been abolished, now enterprises carry out all types of repairs at the expense of the cost of production and, if necessary, can create a reserve fund for repair costs.
Thirdly, for machines, equipment, vehicles, after the expiration of the standard service life, depreciation is terminated. Previously, accrual was made during the entire period of operation of fixed assets, regardless of how long they were designed for. For the rest of the fixed assets (buildings, structures, etc.), the procedure for calculating depreciation has so far remained the same, i.e. depreciation is accrued for as long as they are in operation (for their entire actual service life).
Fourth, in order to increase the interest of enterprises in the renewal of fixed assets, for the first time in our economic practice, it is allowed to use accelerated depreciation of their active part (machines, equipment, vehicles), i.e. full transfer of the book value of these funds to the costs of production and circulation in more short time(depreciation rates are increased, but not more than twice).
Small enterprises are also allowed to additionally write off up to 50% of the cost of fixed assets with a service life of more than 3 years as production costs in the first year of operation.
accelerated depreciation allows:
Accelerate the process of updating the active part of the fixed production assets at the enterprise, and this is already quite a lot;
Accumulate sufficient funds (depreciation deductions) for technical re-equipment and reconstruction of production;
Reduce income tax;
To avoid moral and physical depreciation of the active part of fixed production assets, i.e. maintain them at a high technical level, which, in turn, creates a good basis for increasing production volume, producing better products and reducing their cost.
It should be borne in mind that the accelerated depreciation method applies only to the active part of fixed assets, the standard life of which exceeds 3 years. In addition, accelerated depreciation so far only applies to fixed assets that are used in the production of computer technology, new progressive types of materials, instruments and equipment, to expand exports. In other cases, the enterprise decides on the application of accelerated depreciation with the consent of the Ministry of Economy of the Russian Federation. Depreciation deductions accrued by this method must be used at the enterprise strictly for their intended purpose. In the event of their misuse, the additional amount of depreciation corresponding to the calculation using the accelerated method is included in the taxable base and is subject to taxation in accordance with applicable law.
Fifthly, depreciation deductions of the enterprise remain completely at its disposal.
A very important positive innovation in the system of depreciation charges is that since 1992 not only labor instruments (fixed assets) but also intangible assets have been depreciated. Thus, the scope of depreciation is expanding, and this is very important, since in modern production only the use of scientific and technical products makes it possible to remain competitive, have profits and super profits.
According to the current regulation, intangible assets include: rights to use land plots, natural resources, patents, licenses, know-how, software products, monopoly rights and privileges, trademarks, trademarks, etc.
Intangible assets are taken into account:
made by the founders on account of their contributions to the authorized capital of the enterprise - at a cost determined on the basis of an agreement between the parties;
purchased for a fee from other enterprises and persons - at the actual cost of acquiring and preparing them for use;
received from other enterprises and persons free of charge - at a cost determined by an expert.
These estimates and costs make up the initial cost of intangible assets, at which they, like fixed assets, are credited to the balance sheet.
Depreciation (wear and tear) on intangible assets is calculated monthly according to the rates calculated by the enterprise itself based on the useful life of this asset and during this period. For intangible assets for which it is impossible to determine the useful life, the depreciation rate is set for 10 years. Deductions are included in the cost of production.
Starting from January 1, 1998, in accordance with the Accounting Regulation "Accounting for Fixed Assets" RAS 6/97, depreciation of fixed assets can be carried out using one of the following methods of depreciation deductions: linear method of decreasing balance; the method of writing off the cost by the sum of the numbers of years of the useful life; write-off method in proportion to the volume of products (works).
The application of one of the methods for a group of homogeneous fixed assets is carried out during its entire useful life. During the useful life of an object of fixed assets, depreciation charges are not suspended, except when they are under reconstruction and modernization by decision of the head of the organization and fixed assets transferred by decision of the head of the organization for conservation for a period of more than 3 months.
The annual amount of depreciation charge is determined by:
With the straight-line method - based on the initial cost 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 object;
With the method of writing off the cost by the sum of numbers of years of the useful life - based on the initial cost of the fixed asset and the annual ratio, where the numerator is the number of years remaining until the end of the life of the object, and the denominator is the sum of the numbers of years of the life of the object;
With the method of writing off the cost in proportion to the volume of production (work) - 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 item and the estimated volume of production (work) for the entire useful life of the fixed asset item.
During the reporting year, depreciation charges on fixed assets are accrued monthly, regardless of the accrual method used, in the amount of 112% of the annual amount. In seasonal production, the annual amount of depreciation on fixed assets is accrued evenly during the period of operation of the organization in the reporting year.
Planning depreciation charges at the enterprise is important, as this allows you to determine their amount for the planned period; it is necessary for planning the cost of production and the financial results of the enterprise.
The initial data for determining depreciation charges for the planned period are: indicators of the cost of fixed assets at its beginning; annual and long-term plans for the commissioning of fixed assets and funds received from other enterprises and organizations according to decisions already made; data on the projected disposal of fixed assets; approved depreciation rates.
Enterprises, based on their features of accounting for fixed assets and the possibilities of using computer technology, determine the method for calculating the amount of depreciation. In this case, the following work should be done:
a) group the existing fixed assets at the beginning of the planning period into groups provided for in the unified norms of depreciation charges for full restoration, and determine their value. At the same time, from the fixed assets related to machinery, equipment and vehicles, exclude fully depreciated assets whose standard service life has expired;
b) determine by groups (inventory objects) the average annual cost of all depreciable fixed assets (Fsr. year). It is determined by the formula
where Фн.г - the cost of fixed assets at the beginning of the year, rub.;
Fvv - the cost of input fixed assets, rub.;
t вв - the number of full months of operation of the input fixed assets in the planned year, months;
Fvyb - the cost of retiring fixed assets in the planned year, rub.;
t vyb - the number of full months remaining until the end of the year from the time of their planned retirement;
c) the amount of depreciation deductions for the planned period is calculated for each inventory item or group of fixed assets by multiplying the average annual cost of these funds by the corresponding depreciation rates, taking into account correction factors that reflect the actual operating conditions of these labor tools in the workshop or at the enterprise;
d) the total amount of depreciation charges for the planned year for all depreciable fixed assets is determined by calculating the depreciation amounts calculated for all groups of fixed assets, excluding fully depreciated funds related to machinery, equipment and vehicles.
The amount of accrued depreciation is charged to the cost of manufactured products, work performed or services rendered on a monthly basis; in seasonal production, the annual amount of depreciation is included in production costs for the period of operation of the enterprise in a year.
Accrual of depreciation for fixed assets newly put into operation begins on the 1st day of the month following the month of their putting into operation, and for retired fixed assets stops from the 1st day of the month following the month of retirement.
Careful planning of depreciation charges at the beginning of the planning year allows you to further simplify their calculation during the planning period. In this case, depreciation charges (A) for each month are determined according to a simplified scheme: depreciation charges for newly introduced fixed assets (Abb) are added to depreciation charges for the previous month (A o) and depreciation charges for retired fixed assets (Avyb) are deducted:
The amount of depreciation charges at the enterprise is accumulated on depreciation accounts (“Depreciation of fixed assets”, “Depreciation of intangible assets”, “Depreciation of low-value and wearing items”) and is recorded until the disposal of depreciable property from the enterprise.
In each reporting period, the depreciation amount is written off from the depreciation accounts to the accounts for accounting for production costs and distribution costs. Together with the proceeds from sold products and services, depreciation is credited to the current account of the enterprise, where it is accumulated. Depreciation deductions are spent directly from the current account to finance new capital investments in fixed assets or are directed to long-term investments, to purchase building materials, equipment, and intangible assets.
At the time of disposal of the object from the enterprise, its initial cost is compared with the amount of accumulated depreciation. The result of the disposal of the depreciable object (profit or loss) is attributed to the financial results of the enterprise.
The rational use of depreciation is very important for the enterprise. First of all, they should be used to implement the reproductive policy that is carried out at the enterprise.
1. Linear way
The depreciable cost of an item is written off on a straight-line basis over its useful life.
The depreciation rate is constant.
Determine the annual depreciation rate. As you know, this is the reciprocal of the useful life and expressed as a percentage:
(1: 5) 100 = 20%.
The annual depreciation charge for each year will be
10,000 20 \u003d 2000 rubles. Reporting period, at the end of the year Initial cost, rub. Annual depreciation amount
rub. Accumulated depreciation, rub. residual value,
rub. 1st 10,000 2000 2000 8000 2nd 10,000 2000 4000 6000 3rd 10,000 2000 6000 4000 "4th 10,000 2000 8000 2000 5th 10,000 2000 10,000 0
2. Declining balance method
In this case, any approved fixed rate can be applied, but more often than not, double the depreciation rate is taken compared to that used under the straight-line method. We accept a depreciation rate of 40%.
Depreciation is calculated as follows:
in the first year: 10 LLC 40 \u003d 4000 rubles.
(residual value at the end of the year - 6000 rubles);
in the second year: 6000 40 \u003d 2400 rubles.
(residual value at the end of the second year - 3600 rubles);
in the third year: 3600 40 \u003d 1440 rubles.
(residual value at the end of the third year - 2160 rubles);
in the fourth year: 2160 40 \u003d 864 rubles.
(residual value at the end of the fourth year - 1296 rubles);
in the fifth year: 1296 40 \u003d 518.4 rubles.
(residual value at the end of the fifth year - 777.6 rubles).
As can be seen from Table. 2.3, the amount of depreciation decreases from year to year. However, after depreciation for Last year useful life of property, plant and equipment, they have an outstanding value. This residual value, apparently, should correspond to the price of the possible receipt of materials remaining after the liquidation of fixed assets. Reporting period, at the end of the year Initial cost, rub. Annual depreciation amount, rub. Accumulated depreciation, rub. Residual value, rub. 1st 10 000 4000 4000 6000 2nd 10 000 2400 6400 3600 3rd 10 000 1440 7840 2160 4th 10 000 864 8704 1296 5th 10 000 518.4 722.6
3. The method of writing off the cost by the sum of the numbers of years of the useful life
The sum of the numbers of years of useful life required to calculate depreciation using this method is determined as
1 + 2 + 3 + 4 + 5= 15.
The amount of depreciation to be written off in the reporting year is determined by:
in the first year: 5/15 10 LLC = 3300 rubles; in the second year: 4/15-10 LLC = 2700 rubles; in the third year: 3/15 10,000 \u003d 2000 rubles; in the fourth year: 2/15-10,000 = 1333.3 rubles; in the fifth year: 1/15 10,000 \u003d 666.7 rubles.
Table 2.4 Reporting period, at the end of the year Initial cost,
rub. Annual depreciation amount, rub. Accumulated depreciation, rub. residual value,
rub. 1st 10 000 3300 3300 6700 2nd 10 000 2700 6000 4000 3rd 10 000 2000 8000 2000 4th 10 000 1333.3 9333.3 666.7 5th 10 000 6660 4 Proportional depreciation method
volume of work performed
The method is based on the assumption that depreciation (wear and tear) of an object of fixed assets is only the result of their operation.
Suppose the initial cost of an overburden excavator is 10,000 rubles, the estimated volume of work performed over the entire useful life is 100,000 m3, based on its production characteristics.
Determine the depreciation rate (in rubles.
Per 1 m3 or in % per 1 m3):
10,000: 100,000 = 0.1 rub/m3.
Knowing the actual amount of work of the excavator, we determine the amount of depreciation deductions (Table 2.5).
One of the above methods for a specific item of fixed assets, chosen by the enterprise itself and fixed in the accounting policy, is applied during the entire period of use of the item. Therefore, when choosing the appropriate method, the type of fixed assets and the tasks facing the organization to update them should be taken into account. It is clear that the use of the linear method is most appropriate for objects related to buildings and structures, the method of writing off the cost in proportion to the volume of products (works) - for objects mining industry, individual objects of road transport. For machines and equipment, any of the above methods can be used.
Installed following rules depreciation charges. one.
Depreciation deductions for fixed assets are reflected in the accounting of the reporting period to which they relate, and are charged regardless of the results of the enterprise's activities in the reporting period. 2.
Depreciation deductions are charged monthly, regardless of the method used, in the amount of 1/12 of the annual amount. Reporting period, at the end of the year Initial cost, rub. Amount of work performed, m3 Annual depreciation, rub. Accumulated depreciation, rub. Residual value, rub. 1st 10 000 25 000 2500 2500 7500 2th 10 000 20 000 2000 4500 5500 3-ht 10 000 30 000 3000 7500 2500 4th 10 000 15 000 1500 9000 1000 5 000 10 000 1000 10 000 000 000 000 000 000 000 000 10 000 0 3.
For newly introduced objects, depreciation begins on the first day of the month following the month when this object was accepted for accounting. For retired fixed assets, depreciation is terminated from the first day of the month following the month of its write-off from the balance sheet. four.
For objects for which the cost is repaid in full, depreciation is not charged. 5.
The accrual of depreciation on fixed assets is suspended in the following cases:
for the period of their restoration (reconstruction, modernization and overhaul), if the period of these works exceeds 12 months;
when stored for more than 3 months. The decision on the conservation of the facility is made by the head of the enterprise. Considering that the useful life of the main
funds does not change, the period of suspension of depreciation for them should increase the calendar time for depreciation (except for the method of depreciation in proportion to the amount of work performed).
We figured out what depreciation is and why it is needed. Here we find out the existing depreciation methods for fixed assets, as well as calculation formulas. We will analyze each method in detail and give an example of calculation for clarity.
All existing methods depreciation charges are divided into linear and non-linear, in total there are four of them in accounting. The organization chooses a convenient method for itself and uses it to write off depreciation.
Methods for calculating depreciation of fixed assets
Straight-line method of depreciation of fixed assets
The most common way. With this method, depreciation is charged in equal installments over the entire life of the asset. 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 was revalued, then the replacement cost is taken for calculation.
Formula for calculating the straight-line method of depreciation of fixed assets
A \u003d Cost of fixed assets * Depreciation rate / 100%
Example of calculating depreciation using the straight-line method
Declining balance method
This is an accelerated method of calculating depreciation, why it is good and when it is convenient to use it, read the article devoted to this method “Calculation of depreciation using the reducing balance method”. The calculation is based on data on the residual value of the object.
Formula for calculating the declining balance method of depreciation
With this method, the annual depreciation amount is calculated using the formula:
A \u003d Residual value * Depreciation rate * Acceleration factor / 100%,
Residual cost - initial minus accrued depreciation.
Norm A.=100% / useful life.
The acceleration factor is a factor set by the organization itself.
An example of depreciation calculation using the declining balance method
If we continue to count depreciation further, then it will decrease indefinitely, but will always be greater than 0. In order to completely write off the cost of fixed assets, there is article 259 in the tax code, which stipulates that when the residual value of the object is equal to 20% of the original cost, depreciation calculated as residual quality / number of remaining months of operation.
Fourth (last) year of operation:
A \u003d 12,500 / 12 \u003d 1,042.
Thus, for 4 years, the fixed asset was completely written off using depreciation.
Video lesson. Methods for calculating depreciation of fixed assets of an organization
The video lesson explains in detail the methods for calculating the depreciation of fixed assets of an organization and how it is calculated. The lesson is conducted by a consultant, an expert of the site “Accounting for dummies”, chief accountant Gandeva N.V. ⇓
You can download the slides and presentation for the video from the link below.
Write-off method based on the sum of numbers of years of useful life
Formula for calculating write-offs based on the sum of the number of years of useful life
Annual depreciation is calculated using the formula:
A \u003d Initial cost of OS * number of years remaining until the end of the useful life / sum of the numbers of years of the useful life
Depreciation example
Cost write-off method in proportion to the volume of products (works)
Formula for calculating the write-off method in proportion to the volume of production
A \u003d Actual production volume * Initial value / Estimated production volume over the entire useful life
Calculation example
The main asset is a car with an initial cost of 100,000. The estimated mileage is 400,000 km.
We find the ratio:
initial cost / estimated mileage = 100,000 / 400,000 = 0.25 rubles / km.
Actual mileage in January - 4000 km. A \u003d 4000 * 0.25 \u003d 1000.
Actual mileage in February - 9000 km. A \u003d 9000 * 0.25 \u003d 2250.
Actual mileage March - 2000 km. A \u003d 2000 * 0.25 \u003d 500.
In the same way, depreciation is calculated for each month. The chosen method for calculating depreciation is reflected in, OS-1a and OS-1b, as well as in the accounting policy of the organization.
We continue the topic of fixed assets, next time I will tell you about.
Introduction
Depreciation charges, which are 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 the income received from the sale of products created with the help of capital funds. Moreover, in fact, depreciation deductions are included in the cost of products produced by these capital funds and represent the transfer of the cost of fixed assets that gradually wear out to the cost of manufactured products.
Thus, depreciation is a process of capital reproduction. The faster its reconstruction takes place, the more effective the commercial activity of the organization, which confirms the importance of studying this component of finance. This becomes especially relevant when state level tasks such as the rapid development of high-tech industries, increasing the investment attractiveness of the country, increasing the share high-tech production requiring the effective use of funds and capital accumulated for this purpose.
In addition, depreciation deductions are the company's own financial resource, which have great advantages over profit, as they are not taxed.
The purpose of the course project is to study the calculation of depreciation and their impact on cash flows.
The tasks that were set before working on this project are presented below:
definition of the main theoretical aspects, revealing the concepts of fixed assets, their depreciation and depreciation;
study and comparative analysis of depreciation calculation methods;
consideration of an example of depreciation in an enterprise;
lighting important measures on improvement of depreciation methods.
The subject of the study is the methods of depreciation calculation, the choice of which is considered a key stage in the depreciation policy.
The methodological basis of the research in term paper is the main methods of calculating depreciation deductions used both in accounting and tax accounting, namely:
Linear method;
Decreasing balance method;
Write-off method based on the sum of numbers of years of useful life;
Write-off method in proportion to the volume of production;
Not linear method;
As for the structure of the project, it can be represented as follows:
The course project consists of three chapters, which reflect:
Economic content of the depreciation process;
Analysis of depreciation methods;
Improving depreciation methods;
In the course project when calculating depreciation deductions various methods five tables were used;
This project occupies 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 fixed 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 depreciation of fixed production assets.
For the timely replacement of fixed production assets without prejudice to the entrepreneur, it is necessary that their value 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 (OPF) - means of labor that are repeatedly involved in manufacturing process, while maintaining their natural form, gradually wearing out, they transfer their value in parts to newly created products.
The main production assets are involved in the process of manufacturing products or providing services (machines, machines, devices, transmission 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 OPF.
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 implementation of the production process: tunnels, flyovers, car roads, chimneys on a separate foundation, etc.).
Transmission devices (devices for the transmission of 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 Engineering, automatic machines, other machines and equipment, etc.).
Vehicles (diesel locomotives, wagons, cars, motorcycles, carts, carts, etc., except for conveyors and conveyors included in the production equipment).
Tools (cutting, impact, pressing, sealing, as well as various devices for fastening, mounting, etc.), except for special tools and special equipment.
Production equipment and accessories (items to facilitate the performance of production operations: work tables, workbenches, fences, fans, containers, racks, etc.).
Household inventory (office and household items: tables, cabinets, hangers, typewriters, safes, copying machines, etc.).
Other fixed assets. This group includes library collections, museum valuables, etc.
Depending on the degree of direct impact on the objects of labor and the production capacity of the enterprise, the main production assets are divided into active and passive. The active part includes machinery and equipment, vehicles, tools. The passive part of fixed production assets include all other groups of fixed assets. They create conditions for the normal operation of the enterprise.
In the process of functioning, the main production assets are subject to physical and moral wear and tear.
Physical depreciation is understood as the loss by the main production assets of their technical parameters. Physical wear can be operational and natural. Operational wear is a consequence of production consumption. Natural wear and tear is caused by 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 the BPF as a result of improving equipment and technology, the introduction of progressive materials, and increasing labor productivity;
a form of obsolescence associated with the creation of more advanced and economical OPF (machinery, equipment, buildings, structures, etc.).
Obsolescence assessment of the first form can be defined as the difference between the original and replacement cost of fixed assets. Obsolescence assessment 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 depreciation, each enterprise forms a depreciation fund - a special cash reserve intended for the reproduction of fixed production assets, an important element in the formation of which are the methods used in the process of calculating depreciation, which are the subject of this course project.
The depreciation fund is a financial resource for capital investments and is intended for simple reproduction of fixed assets, 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 it into cash and savings. financial resources for the purpose of subsequent reproduction of fixed production assets.
From an economic point of view, depreciation is the monetary expression of a part of the cost of fixed production assets transferred to a newly created product.
Also, depreciation deductions represent the attribution to the cost of the accrued depreciation of the fixed assets, but unlike other cost items ( material costs, wages, deductions, etc.) the depreciation process does not lead to an outflow financial resources, since depreciation deductions are reimbursed after the sale of products. In addition, since depreciation charges are accumulated gradually, and are spent on updating fixed production assets at a time, only after their service life expires, the accrued depreciation until the replacement of retiring fixed assets is temporarily free and serves as an additional source of expanded reproduction. Thus, depreciation plays an important 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 it into a monetary form and accumulating financial resources for the subsequent reproduction of fixed production assets.
1.2 Characteristics of depreciation methods used in accounting
AT recent times Scientific and technological progress becomes the determining direction in the development of production, under the influence of which new macroeconomic proportions are formed. They consist in changing the ratio between compensation and accumulation, accumulation and investment. This leads to a separation of the value and speed of depreciation deductions from the amount of depreciation and circulation of fixed capital (its active part). Thus, intensive reproduction is carried out. Consequently, depreciation deductions become an important tool for regulating the activities of the organization. Under these conditions, it is of particular importance to provide enterprises with the opportunity to apply various methods of calculating depreciation.
According to the Accounting Regulation "Accounting for fixed assets", depreciation of fixed assets can be carried out in one of the following ways:
linear way;
reducing balance method;
method of writing off the cost by the sum of the numbers of years of the 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 depreciable property.
Depreciation starts on the 1st day of the month following the month in which this object was put into operation, terminates on the 1st day of the month following the month when the cost of the object was fully written off or when this object was removed from the depreciable property .
Depreciation is charged in accordance with the depreciation rate determined for an object based on its useful life.
A prerequisite is that the use of one of the depreciation methods for a group of homogeneous is carried out during 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. The determination of this period is made taking into account the following factors:
the expected life of this facility in accordance with the expected productivity or capacity;
expected physical wear, depending on the mode of operation (number of shifts), natural conditions and the influence of an aggressive environment, repair systems;
regulatory and other restrictions on the use of this object (for example, the lease term).
In cases of improvement (increase) of the initially adopted normative indicators of the functioning of an object of fixed assets as a result of the reconstruction or modernization, the organization reviews the useful life of this object, as discussed in the previous chapter.
Also, objects of fixed assets, consumer properties of which do not change over time, are not subject to depreciation, - land and objects of nature management.
Accrual of depreciation of fixed assets that are not used in production activities, is reflected at the expense of own sources, formed from the profit remaining at the disposal of the enterprise.
Let us consider in more detail the methods of calculating depreciation at the enterprise.
The straight-line method consists in evenly accruing depreciation by the organization over the entire standard service life or useful life of an item of property, plant and equipment. The amount of depreciation charges per month (Am) under the straight-line method is determined based on the depreciable cost of the item and the depreciation rate accrued based on the useful life of this item.
Where
Where
SPI - the useful life of an item of fixed assets in years.
The amount of depreciation for the month is calculated based on the useful life, expressed in months, according to the formula:
2.Decreasing balance method
With the reducing balance method, 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 depreciated cost and the amount of depreciation accrued before the beginning of the reporting year) and the depreciation rate calculated on the basis of the useful life of the object and the acceleration factor adopted by the organization.
The depreciation expense for the year is determined as follows:
Where:
A.S. - depreciable cost of fixed assets;
Na - the annual depreciation rate as a percentage of the depreciable cost of the object, calculated according to the formula based on the useful life (calculation is given below).
Where:
SPI - useful life of fixed assets, years;
K - increasing coefficient, equal, according to PBU 6/01, not more than 3. The increasing coefficient is a component of the depreciation rate. Depreciation in relation to the depreciable property is carried out 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 the fixed asset object, the depreciation rate cannot be changed, including the value of the coefficient cannot be changed.
The maximum value of the multiplying factor can be set for the 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:
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
SCHL - the sum of the numbers of years chosen by the organization independently within the established range of the useful life of the object;
SPI - the useful life of an object chosen by the organization independently within the established range.
Cost write-off method 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 physical 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 the technical documentation, can be produced throughout the entire life of the object. Depreciation charges are calculated in a productive way in each reporting year according to the following formula:
Where
AOi - the amount of depreciation charges in the reporting year i;
A.S. - depreciable cost of fixed assets;
OPRi - the projected volume of output during the operating 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 contributes to the intensive use of fixed assets and avoids distortions in the cost of products due to the irregular activity of the organization.
1.3 Characteristics of depreciation methods used in tax accounting
The calculation of depreciation charges on depreciated property for tax purposes has some peculiarities in comparison with the calculation of depreciation for tax purposes. accounting.
Since January 1, 2009, the tax accounting of fixed assets has changed significantly. Amendments made federal law dated July 22, 2008 No. 158-FZ, for the most part relate to the non-linear method of depreciation. The new procedure for applying this method allows you to significantly reduce income tax in the first years of using the object. In addition, companies that have received fixed assets for 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 depreciation:
Linear;
Nonlinear.
Both of these methods can equally be used to calculate depreciation charges, both for fixed assets and for intangible assets. The amount of depreciation is determined by the taxpayer on a monthly basis for each item of depreciable property.
As for accounting purposes, for taxation purposes, the accrual of depreciation charges on 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 deductions for an object of depreciable property is terminated from the first day of the month following the month when the value of such an object was completely written off or when this object was removed from the composition of depreciable property for any reason. groups in accordance with the useful life, which establish the appropriate range of useful lives of fixed assets.
Table 1 Depreciation groups
Group number Service life Composition of fixed assets 11-2 years Machinery and equipment as the main production tools 22-3 years Machinery and equipment, perennial plantings. 33-5 years Structures and transmission devices, machinery and equipment 45-7 years equipment, household and industrial inventory, 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 Structures and transmission devices, dwellings, machinery and equipment, vehicles, perennial plantings (stone 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 inventory. 925-30 years Buildings (cr ome residential), structures and transmission devices, machinery and equipment, vehicles 10 over 30 years Buildings (except residential), structures and transmission devices, dwellings, machinery and equipment, vehicles, perennial plantings.
The procedure for applying the linear method has not fundamentally changed. 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 the depreciation rate determined for this object. When applying the straight-line method, the depreciation rate for each item of depreciable property is determined by the formula:
n is the useful life of this object
The straight-line method of depreciation is used by taxpayers in without fail to buildings, structures and transmission devices included in depreciation groups 8-10, regardless of the timing of commissioning of these facilities.
The non-linear method assumes that the monthly depreciation rate, determined on the basis of 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 must be charged not for each individual item of fixed assets, but for depreciation groups. The advantage of the non-linear method is that a more accelerated mechanism can be used at the initial stage of depreciation.
There are no restrictions for the transition from the linear method to the non-linear one, except that it is possible only from the beginning of the tax period, which is the 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 the accounting policy for tax purposes establishes the use of a non-linear depreciation method, 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. In the future, 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, depreciation for which 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 sheet 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, according to the following formula:
A=B k, where
A - the amount of depreciation accrued for one month for the corresponding depreciation group (subgroup); B - the total balance of the corresponding depreciation group (subgroup); k - 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, in order to achieve the expected result in a shorter period of application of the non-linear method, the use of a system of multiplying factors is provided.
Taxpayers have the right to apply a special coefficient to the basic depreciation rate, but not higher than 2.
With regard to depreciable fixed assets used to work in an aggressive environment and (or) increased shifts.
An aggressive environment is understood as a combination of natural and (or) artificial factors, the influence of which causes increased wear (aging) of fixed assets during their operation. The presence of fixed assets in contact with an explosive, flammable, toxic or other aggressive technological environment, which can serve as a cause (source) of initiating an emergency, is also equated to work in an aggressive environment.
When using the non-linear depreciation method, the specified special coefficient is not applied to fixed assets belonging to the first - third depreciation groups.
2. In relation to own depreciable fixed assets of taxpayers - agricultural organizations of an industrial type (poultry farms, livestock complexes, fur farms, greenhouse complexes).
3. In relation to own depreciable fixed assets of taxpayers - organizations that have the status of a resident of an industrial production special economic zone or a tourist and recreational special economic zone.
4. With regard to depreciable fixed assets relating to objects with high energy efficiency, in accordance with the list of such objects established by the Government of the Russian Federation, or to objects having high class energy efficiency, if in relation to such objects, in accordance with the legislation of the Russian Federation, the definition 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. With regard to depreciable fixed assets that are the subject of a financial lease agreement (leasing agreement), taxpayers whose fixed assets must be accounted for in accordance with the terms of a financial lease agreement (leasing agreement). The specified special coefficient does not apply to fixed assets related to the first - the third depreciation groups.
2. With regard to depreciable fixed assets used only for the implementation of scientific and technical activities.
It is allowed to charge depreciation below the established depreciation rates by decision of the head of the taxpayer organization, fixed in the accounting policy for tax purposes in the manner established for choosing the applied depreciation method.
When selling depreciable property by taxpayers using reduced depreciation rates, the residual value of the depreciable property sold is determined based on the actually applied depreciation rate.
Fundamental difference new version The non-linear method of calculating depreciation from previous norms 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 main methods of calculating depreciation charges used in tax accounting, it should be noted that, unlike the methods of calculating depreciation used in accounting, they imply the division of depreciable property into ten groups depending on the period of operation, as well as the use of established tax RF depreciation rates.
Chapter 2. Analysis of depreciation methods
2.1 Comparative analysis of various depreciation methods
For comparative analysis methods for calculating depreciation deductions, the data of CJSC "Alekseevsky Dairy Canning Plant" will be used.
CJSC "Alekseevsky Milk Canning Plant" is a large, multifunctional enterprise engaged in the production of condensed dairy products and dairy products not included in other groups.
This business 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 large enterprise. The volume of total capital in n.g. was 1385367 tr. During the year, more than 176,090 tr. grew and by the end of the year amounted to 1561457t.r.
In order to conduct a comparative analysis, it is necessary to apply the depreciation methods used in accounting for more detailed analysis and identifying the most effective methods charges.
To calculate the depreciation expense, you must Firstly, determine the initial cost of the equipment accepted for accounting. In this case, it will be water treatment equipment, with an initial cost of 200,000 rubles, and secondly, the useful life is 6 years, with the established depreciation rate of 16.67%.
Linear method.
Depreciation will be charged annually for this property.
deductions in the amount of 33,340 rubles, since (200,000 * 0.1667). And the 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.
The disadvantage is that when calculating depreciation, neither the volume of manufactured products, nor the mode of operation of the facility, nor the intensity of the production program are taken into account.
Decreasing balance method.
The cost of the introduced object is 200,000 rubles. The term of use is 6 years, depreciation for the year will be 16.67. Acceleration factor \u003d 2. Taking into account the acceleration factor, annual depreciation is 33.34%
Table 3 Calculation of depreciation deductions using the diminishing balance method
ГодОстаточная стоимость на нач.годаГодовая норма амортизацииСумма амортизац-х отчисленийОстаточная стоимость на конец года1200 00016.67*2=33,3466680133320213332033,34444488887238887233,34296305924245924233,3419 7513949153949133,34131662632562632533,34877617 542Итого182451
Accumulated depreciation over six years is 182,451 rubles
Dignity this method- involves a consistent decrease in the annual amount of depreciation and a higher degree of depreciation of fixed assets is achieved. At this method in the early years, most of the value of the property, plant and equipment is written off.
Disadvantage - when attributing the under-depreciated part of the cost to the production costs of the last, sixth year, it will lead to a significant decrease in profit.
The method of writing off the cost by the sum of the numbers of years of the 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 the method of writing off the cost by the sum of the numbers of years
YearEfficiency factorSum of depreciation deductionsDepreciable part,%16/2157 14328.625/2147 61923.834/2138 0951943/2128 57114.352/2119 0479.561/2195234.8Total200 000100
As can be seen from the table, the annual amount of depreciation 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.
The production output by years is distributed as follows.
Total - 7 990 units.
Depreciation charges per unit of production for the entire useful life of the equipment will amount to 25.03% (200,000/7,990).
Table 5 Calculation of depreciation deductions by the write-off method in proportion to the volume of production
GOODSED OF manufactured products of depreciation, rub. GOD amount of depreciation, rub. Samortized part,%1170025.03 = 200,000/799042 55121.3 = (42551/200000)*1002165025.0341 30020.73160025.0340 01620 4126025.15 .8598025.0324 50912.2680025.0320 02410Total 7 990200 000100
This method of calculating depreciation is also called production. Unlike previously discussed, this method does not provide a uniform distribution of depreciation charges throughout the year. The amount of accrued depreciation deductions depends on the specific volume of output.
Now, on the basis of earlier calculations, we will draw conclusions about the feasibility of applying methods for calculating depreciation.
With the straight-line method, depreciation is distributed evenly over the years of operation.
Under the reducing balance method, the organization most depreciation accrues in the first years of operation of water treatment equipment, and then gradually reduces charges. In favor of the declining balance method, in contrast to straight-line accrual, two arguments are usually given:
The cost of maintaining and repairing an object increases as its service life increases (that is, the declining 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 the cost by the sum of the numbers of years of useful life, the largest deductions fall on the first years of operation of the fixed asset. In subsequent years, the amount of depreciation deductions falls quite sharply.
It is obvious that when writing off the cost in proportion to the volume of products (works), an increase in annual output entails a proportional increase in depreciation.
Based on a comparative analysis of depreciation methods, we come to the conclusion that the method chosen in accordance with the definition 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 soon as possible book value equipment, the write-off method is justified by the sum of the numbers of years of useful life, etc.
Thus, if an organization seeks intensive use of fixed assets, then it is advisable to write off their value either by the sum of the numbers of years of useful life, 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 production due to the irregular activity of the organization.
2.2 Assessing the impact of the depreciation policy on the amount of income tax and property tax
depreciation accounting tax
Depreciation policy is an integral part of the economic policy of the state, aimed at managing depreciation deductions that are formed during the operation of fixed assets.
The purpose of the depreciation policy is to create favorable conditions for all business entities for the reproduction and renewal of fixed assets, the activation of investment activities and the acceleration of scientific and technological progress.
In the process of forming the depreciation policy of the enterprise, the following factors are taken into account:
The volume of used fixed assets subject to depreciation;
Method for estimating the cost of used fixed assets subject to depreciation;
real term the intended use in the enterprise of the depreciable asset;
Methods of accrual of depreciation allowable by law;
The rate of inflation in the country.
The depreciation policy pursued at the enterprise affects not only the level of physical and obsolescence of fixed production assets, the technical level and production efficiency, but also the amount of tax payments. In this regard, the company needs to pursue such a depreciation policy that would allow minimizing tax payments, increasing profits and improving its financial condition.
The amount of depreciation is influenced by factors such as the initial (replacement) cost of fixed assets, their useful life, methods for calculating depreciation, the use of increasing and decreasing coefficients to the basic depreciation rate, etc.
Depreciation deductions are included in the cost of production and are reflected in the tax payments of the organization for property tax and income tax, namely, the accrued amount of depreciation determines the amount of income tax and property tax of the enterprise. Moreover, the tax on the property of the enterprise has an impact on the amount of income tax.
Thus, all these indicators are in close unity and interrelation. A change in one of them inevitably causes a chain of subsequent fluctuations that affect the financial results of the enterprise.
The accrued amount of depreciation deductions affects the profit of the enterprise. The higher the depreciation charge, the lower the profit and vice versa.
By reducing profits, the growth of depreciation deductions leads to a decrease in income tax. The resulting income tax savings are called "tax shields".
The tax on the property of an organization is calculated as the product of the rate (currently the maximum level of the rate is 2.2%) and the average annual value of the property. When calculating the taxable base for this tax" (average annual value of property), fixed assets are accepted for calculation at their residual value.
Thus, depreciation leads to a decrease in the residual value of fixed assets and therefore reduces property tax payments.
Therefore, the higher the amount of depreciation, the higher the tax protection or tax shield of the enterprise.
Thus, it is very important for any enterprise that, in the end, a scientifically based depreciation policy leads to the maximization of the value: net profit plus depreciation.
Chapter 3. Improving the depreciation policy of the enterprise
The development of the depreciation policy of an enterprise should be a complex modeling process, in which the analysis of cash flows from depreciation by various methods, the dynamics of the input and disposal of fixed assets, taxation are carried out, and various options for the state of the enterprise are modeled depending on the application of certain measures. The optimal depreciation and accounting policy should be determined on the basis of an integrated approach based on specific economic conditions activities of a particular enterprise.
Analysis operating system depreciation in CJSC "Alekseevsky Milk Canning Plant" indicates the need to move from depreciation as a means of reimbursing the cost of capital to depreciation, stimulating 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 fixed assets;
Conservation of fixed assets;
Depreciation methods.
To form an effective depreciation policy, it is necessary to implement a number of recommendations.
First of all, the enterprise needs to improve the quality of estimating the cost of fixed production assets. In other words, the main production assets must be regularly revalued at market value for tax purposes, as well as in order to determine the amount of depreciation deductions that form the necessary and sufficient depreciation fund for their renewal.
In addition, 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, repayment of debts, etc.
Hence it follows that the process of strengthening the targeted spending of depreciation funds in CJSC "Alekseevsky Milk Canning Plant" would be facilitated by the introduction of control regimes for the internal assets of the enterprise, from which expanded and technical re-equipment of production is financed.
An important direction improvement of depreciation policy is the expansion of methods for calculating depreciation. The use of various depreciation methods allows enterprises to regulate, within the limits of the service life of the means of labor, the amount of depreciation amounts attributable 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 the methods of depreciation calculation that are used in the organization, the most used should be the depreciation method depending on production volumes. In addition, for the passive part of fixed assets, that is, for buildings and structures, it would be advisable to apply the straight-line depreciation method. These recommendations will help optimize the depreciation policy of the enterprise, which consists in a balanced depreciation budget.
The next direction in improving the depreciation policy at CJSC "Alekseevsky Milk Canning Plant" is the use of a depreciation bonus, which will allow you to write off from 10 to 30% of the cost of capital investments as expenses at a time. With respect to expensive items of 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 to:
Introduce a regime of control over the internal funds of the enterprise
When calculating the amount of depreciation deductions, to a greater extent use the method of writing off the cost in proportion to the volume of production
Use depreciation bonuses
Improve the quality of estimating the cost of fixed production assets
Conclusion
Summing up the results of the work done, noting the fulfillment of the tasks set at the beginning, we 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 an important 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 it into a monetary form and accumulating financial resources for the subsequent reproduction of fixed production assets.
The choice of methods by which the values of depreciation deductions will be calculated is a crucial step towards achieving the goals of "painless" formation of recovery funds, which is one of the main internal sources financing the activities of any enterprise. Today, the most common are the following methods of depreciation.
The straight-line method consists in depreciating the organization evenly over the entire standard service life or useful life of an item of fixed assets.
Decreasing 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 depreciated 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) - depreciation based on the depreciable cost of the object and the ratio of physical indicators of the volume of products (works, services) issued in the (current) period to the resource of the object.
The method of writing off the cost by the sum of numbers of years of the useful life - involves determining the annual amount of depreciation based on the depreciable cost of fixed assets and the ratio, in 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 its useful life beneficial use. The largest deductions fall on the first years of operation of the fixed asset
Having considered all the main methods of calculating depreciation charges that are used in the practice of Russian organizations, we came to the conclusion that each method has its own advantages and disadvantages. Depending on the correctness of the assessment of the factors that determine the activity of an economic entity, each of the listed methods can become both the most optimal and 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/
Regulation on accounting "Accounting for fixed assets"
Astakhov V.P. / Accounting (financial) accounting: Textbook // 5th edition, revised and supplemented. - Moscow: ICC "March", 2009
Theory of accounting. Textbook for universities / Babaev Yu. A. // 3rd ed., revised. and additional - M.: UNITY-DANA, 2006
I.I. Veretennikova - "Depreciation and depreciation policy"
K. Voloshin / New depreciation rules // 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, "Prospect Velby", 2010
Accounting financial accounting - Kushnir I.V. >> Depreciation of fixed assets-2012
Accounting. Textbook for universities / Sapozhnikova N. G. // Publishing house "Knorus", 2010
Analysis economic activity enterprises. Proc. / G. V. Savitskaya. - M., 2009.
Safronova N.A // Textbook for students of higher educational institutions studying in economic specialties and directions. Economics of the enterprise-2010
Economics of the enterprise / Textbook. / 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. Topical issues of depreciation policy in a modern enterprise
Financial management / Ed. E.I. Shokhin. - M: ID FBK-PRESS, 2010
Schroeder E.G. Methods of calculating depreciation-270s.-2009
Valuation of enterprises (businesses) - tutorial, ch.5.3 (Shcherbakov V.A., Shcherbakova N.A.) -2012
Depreciation of fixed assets / Analytical informational portal"Clerk" // http://www.klerk.ru/
Depreciation methods / 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.
Tutoring
Need help learning a topic?
Our experts will advise or provide tutoring services on topics of interest to you.
Submit an application indicating the topic right now to find out about the possibility of obtaining a consultation.
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 tax code RF.
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 the non-linear method to the linear one 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: