New accounting standards for fixed assets and capital investments

Fixed assets in accounting

According to PBU 6/01, fixed assets DO NOT INCLUDE:

• Finished products;
• Goods;
• Items handed over for installation or to be installed;
• Capital investments;
• Financial investments;
• Items with a value below the established limit. Each organization determines it independently, but according to the law it cannot be higher than 40,000 rubles.

Fixed assets are assets intended for the production of products, performance of work, provision of services, as well as for management needs and provision for a fee for temporary possession and use. These assets are used for more than 12 months, are not intended for resale and are capable of generating income in the future (clause 4 of PBU 6/01).

Non-production objects with a service life of more than 12 months and a cost exceeding the limit on the value of fixed assets are also reflected in fixed assets, despite the fact that they do not meet the criteria of clause 4 of PBU 6/01.

A complete list of fixed assets is contained in the All-Russian Classifier of Fixed Assets (OKOF), approved by Decree of the State Standard of Russia dated December 26, 1994 No. 359.

What is the essence of fixed assets?

The concept of “fixed assets” does not include any property of an enterprise. These are material objects that a company uses for various types of its activities: production of goods, provision of services, performance of work, rental and other functions. All of the following must apply to these tangible assets:

• they do not intend to be sold or processed in the near future;
• they serve for the benefit of the entrepreneur for at least 12 months (or one operating cycle if it exceeds a year);
• potentially capable of generating income for the owner (now or in the future);
• may be subject to wear and tear and lose value (everything except land plots).

REFERENCE! In the specialized literature, the identical definition of “fixed assets” is sometimes used. But in modern business vocabulary, both domestic and international, it is considered outdated. We do not recommend using it, so as not to seem like an “economic dinosaur.”

Limit on the value of fixed assets

If a fixed asset costs less than the fixed asset cost limit established in the organization’s accounting policy, then it can be reflected as part of inventories. The cost limit cannot be higher than 40,000 rubles (clause 5 of PBU 6/01).

In order to ensure the safety of these objects in production or during operation, the organization must organize proper control over their movement.

In tax accounting, the limit on the value of fixed assets is fixed; from January 1, 2021, it is equal to 100 thousand rubles. Previously, as in accounting, it was 40 thousand rubles.

The higher the limit on the value of fixed assets, that is, the fewer fixed assets on the balance sheet, the more profitable the organization:

• expenses are written off immediately, rather than stretched out over years (depreciation);
• Pay less property tax.

The limit on the value of fixed assets in accounting is established by accounting policy.

Criteria for fixed assets in accounting and tax accounting

Fixed assets are property that is found in almost every enterprise, so it is necessary to know the criteria for fixed assets in accounting and tax accounting.

Criteria for fixed assets in accounting

First of all, let's look at what the main tool is. In accounting, there are several criteria, subject to which an object will be classified as a fixed asset. They are given in paragraph 4 of PBU 6/01 “Accounting for fixed assets”.

1. It is intended to use the asset for the production or management needs of the organization or to provide it for temporary use or ownership for a fee.

2. The asset must be used for a long time: this is a period of more than 12 months. or normal operating cycle over 12 months.

3. The organization does not intend to resell the asset.

4. The asset will provide future economic benefits to the organization.

The above criteria do not provide for any cost restrictions for fixed assets. However, in accordance with clause 5 of PBU 6/01, assets that meet the criteria specified above, but have a value of no more than 40,000 rubles. per unit, can be accounted for as inventories. The limit can be any amount within 40,000 rubles; data on the limit amount is indicated in the accounting policy of the enterprise. In the absence of such information in the accounting policy, property less than 40,000 rubles is accounted for as fixed assets.

Criteria for fixed assets in tax accounting

In tax accounting, the criteria for fixed assets are somewhat different and are given in paragraph 1 of Art. 256 of Chapter 25 of the Tax Code of the Russian Federation.

Property is depreciable for tax accounting purposes if it is owned by the taxpayer and is used by him to generate income. The cost of such property will be repaid through depreciation. Moreover, property is considered depreciable if its useful life is more than 12 months and the original cost is more than 40,000 rubles.

To ensure that accounting and tax accounting do not differ from each other, it is better to set a limit in accounting for fixed assets of 40,000 rubles. In this case, fixed assets will include property worth more than 40,000 rubles. Therefore, with the same methods of calculating depreciation (in accounting and tax accounting), the enterprise will not have any discrepancies between them.

These are the criteria for fixed assets in accounting and tax accounting; about accounting for fixed assets under the simplified tax system, see here

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Useful life

The period during which the use of an item of fixed assets brings economic benefits (income) to the organization is called its useful life (USL).

For certain groups of fixed assets, the useful life is determined based on the quantity of products (volume of work in physical terms) expected to be received as a result of the use of this object.

The main assets include:

• buildings, structures,
• working and power machines and equipment,
• measuring and control instruments and devices,
• Computer Engineering,
• vehicles,
• tools, production and household equipment and supplies,
• working, productive and breeding livestock,
• perennial plantings,
• on-farm roads and other relevant facilities,
• capital investments for radical improvement of land (drainage, irrigation and other reclamation works);
• capital investments in leased fixed assets;
• land,
• environmental management objects (water, subsoil and other natural resources).

Land plots not intended for sale, regardless of their value (for example, less than 40 thousand rubles) are classified as fixed assets, since they cannot be classified as inventories.

Fixed assets

What is OS considered?

As in PBU 6/01, FSBU 6/2020 establishes the conditions under which an asset is classified as an asset:

• has a material form (new condition);
• intended for use in the activities of the organization. An addition has appeared here: the main asset is also an asset that is used to protect the environment;
• must be used for more than 12 months or a normal operating cycle of more than 12 months;
• capable of generating benefits (income).

It should be noted: the condition that the resale of the property is not planned no longer exists.

As for the value of assets, the standard does not establish its threshold. Let us remind you that according to PBU 6/01, an object that costs 40 thousand rubles. and cheaper, it is allowed to be reflected as part of inventories. Now the cost threshold can be set by the organization itself. Moreover, the standard does not talk about how “cheap” assets should be taken into account. The only rule has been established: the costs of acquiring and creating such assets are recognized as expenses in the period in which they are incurred.

Another thing is the list of exceptions that are not subject to the general rules of accounting for fixed assets. According to FAS 6/2020, these are long-term assets for sale and capital investments. For the latter, their own standard has been approved.

What is recognized as an accounting unit

The accounting unit remains the inventory object, as provided for by PBU 6/01. However, now an independent inventory item recognizes the significant costs of an organization to carry out repairs, technical inspections, and maintenance of operating systems with a frequency of more than once every 12 months or more than once during a normal operating cycle exceeding a year.

According to FSBU 6/2020, an organization is obliged to classify fixed assets by type (real estate, machinery and equipment, transport, industrial and household equipment, etc.) and by groups. Groups include objects of the same type.

Please note that investment real estate constitutes a separate group. This is real estate that is intended to be provided for a fee for temporary use or to generate income from an increase in its value.

How is the cost assessed?

When recognized in accounting, an asset is valued at its original cost, as provided by PBU 6/01. However, FSBU 6/2020 does not contain an approximate list of expenses that form this cost. According to the standard, the initial cost is the total amount of capital investments related to the object that the organization made before recognizing fixed assets in accounting.

But after recognizing an object, you can choose how to evaluate it: at its original or revalued cost. Moreover, the selected method applies to the entire OS group.

If revalued value is selected, the value of the asset is regularly revalued so that it is equal to or does not differ materially from fair value. The latter is determined in the manner prescribed by IFRS 13.

As a general rule, the initial cost does not change. According to FSBU 6/2020, it is increased by the amount of capital investments that are associated with the improvement or restoration of the facility. It is necessary to change the initial cost at the time of completion of such capital investments.

It should be borne in mind that the amounts of depreciation and impairment must be reflected in accounting separately from the original cost of fixed assets. An organization is required to test assets for impairment in the manner prescribed by IAS 36.

How is depreciation calculated?

The list of fixed assets that are not depreciated . In addition to the objects specified in PBU 6/01, the consumer properties of which do not change over time, FSBU 6/2020 says:

• about investment property that is valued at a revalued value;
• OS for the implementation of legislation on mobilization preparation and mobilization. These objects must be conserved and must not be used in the production or sale of goods, in the performance of work or provision of services, for provision for temporary possession for a fee or for management needs.

Please note that, according to the general rule of FSBU 6/2020, depreciation is not suspended even in the event of a simple or temporary cessation of use of the object. An exception is the situation when the liquidation value of the fixed asset becomes equal to its book value or exceeds it. Let us remind you that according to PBU 6/01, depreciation is suspended if, by decision of the manager, the object is mothballed for a period of more than 3 months or if the object is being restored for more than 12 months.

methods for calculating depreciation : the method of writing off value based on the sum of the numbers of the useful life will not be used. According to FAS 6/2020, the straight-line method and the reducing balance method are applied to fixed assets, the useful life of which is determined by the period when the use of the object brings economic benefits to the organization. If the period is determined based on the quantity of products or volume of work that is expected to be obtained from using the OS, depreciation must be charged in proportion to this quantity or volume.

The general rules by which the start and end points of depreciation have been adjusted. According to PBU 6/01, depreciation begins to accrue from the first day of the month following the month of registration of the asset, and stops from the first day of the month following the month of disposal of the object. According to FAS 6/2020, this procedure becomes optional: an organization can apply it if it makes such a decision. As a general rule, depreciation begins from the date the object is recognized in accounting, and stops from the moment it is written off.

FSBU 6/2020, compared to PBU 6/01, spells out the provisions on write-off of fixed assets. Firstly, more reasons are given for decommissioning an object (for example, the expiration of the regulatory permissible service life of the object, as a result of which its operation becomes impossible). Secondly, the standard establishes the rules for accounting for the costs of dismantling and recycling of fixed assets, environmental restoration, as well as the rules for accounting for depreciation, impairment, and the amount of income or expense received upon disposal.

What is disclosed in the reporting

The standard provides a list of information about fixed assets that must be disclosed in accounting reports. For example, this information is:

• book value of depreciable and non-depreciable items;
• result of disposal of fixed assets;
• the result of the revaluation;
• depreciation elements.

Moreover, for objects at an overvalued value, additional information must be submitted, including the following:

• date of last revaluation;
• methods and assumptions in determining fair value;
• methods for recalculating the initial cost.

In PBU 6/01, the information disclosure provisions are not so detailed.

How to start using the standard

As a general rule, the consequences of changes in accounting policies in connection with the start of application of FAS 6/2020 must be reflected retrospectively, i.e. as if the standard had already been applied since the occurrence of the facts of economic life that it affects. However, there are exceptions. For example, you may not restate comparative figures for periods that precede the first reporting period under the standard, but instead make a one-time adjustment to the carrying amount of fixed assets.

It must be borne in mind that changes in book value due to the start of application of FAS 06/2020, which are not related to changes in other balance sheet items, are written off to retained earnings.

Inventory object

The accounting unit for fixed assets is an inventory item.

An inventory object is an object with all fixtures and accessories, or a separate structurally isolated object, intended to perform certain independent functions, or a separate complex of structurally articulated objects, representing a single whole and intended to perform a specific job.

For example, an organization has several safes of the same model, color, and year of manufacture. Each safe is an inventory object that is assigned an inventory number. It should be reflected in accounting separately from other safes.

A complex of structurally articulated objects is one or more objects of the same or different purposes, having common devices and accessories, common control, mounted on the same foundation, as a result of which each object included in the complex can perform its functions only as part of the complex, and not independently.

If one object has several parts, the useful lives of which differ significantly, each such part is accounted for as an independent inventory item.

For example, a computer is a complex of objects: system unit, monitor, mouse, keyboard. Individually, these items are useless, but together they form one fixed asset item.

How to fill out the form

The book can be filled out manually or kept electronically. It consists of a title page, even and odd pages. The number of pages can be any, it depends on the need to enter information about a large number of objects.

Title page

On the title page you must indicate:

• name of the company or enterprise;
• name of the structural unit (if any);
• OKUD, OKPO;
• accounting period;
• position, full name and personnel number of the employee responsible for maintaining the book.

Even pages

Here you need to enter the following data into the table:

1. Serial number of the record. Each object must have its own line, and only one. All information about its movement should be listed in this line in columns.
2. OS object name. The exact name must be taken from the transfer and acceptance certificate OS-1 (a, b).
3. Inventory number.
4. Number of the document confirming the acceptance of the OS (transfer and acceptance certificate in form OS-1 (a, b)).
5. Date of acceptance for accounting.
6. The name of the structural unit where the object is registered.
7. The person responsible for storage.
8. The initial cost of the object.
9. Useful life.
10. Amount of depreciation.

Attention! Almost all this information should be taken from the transfer and acceptance certificate of the fixed asset.

Odd pages

The table continues. The following information is included in it:

1. Residual value. It is calculated by subtracting the indicator in column 10 from the indicator in column 8.
2. Date of revaluation (if any).
3. Revaluation factor.
4. Replacement cost. This is the value after revaluation of the object.
5. Details of the document that confirms the fact of movement or disposal (if any). These are acts in the form OS-4 (a, b).
6. The name of the structural unit to which the object is being moved.
7. The person responsible for storing the object at the new location.
8. Reason for disposal or write-off. This may be a sale, wear and tear.

For your information! If a factual error is found in the document, it can be corrected in the standard way. Carefully cross out the incorrect information, write the correct information next to it, put the note “Corrected to believe”, date and signature.

Purposes of fixed asset accounting

The main goals of accounting for fixed assets are (clause 6 of Order of the Ministry of Finance of the Russian Federation dated October 13, 2003 N 91n “On approval of Guidelines for accounting of fixed assets”):

a) formation of actual costs associated with the acceptance of assets as fixed assets for accounting;

b) correct execution of documents and timely reflection of the receipt of fixed assets, their internal movement and disposal;

c) reliable determination of the results from the sale and other disposal of fixed assets;

d) determination of actual costs associated with the maintenance of fixed assets (technical inspection, maintenance, etc.);

e) ensuring control over the safety of fixed assets accepted for accounting;

f) analysis of the use of fixed assets;

g) obtaining information about fixed assets necessary for disclosure in the financial statements.

On the characteristics of a single inventory object

Often, organizations when accepting complex equipment or computer equipment for accounting are faced with the question of what exactly is considered an inventory item: each part and fixture or a set of items as a whole, if it seems possible to comply with the norm of clause 6 of PBU 6/01 on the mandatory installation of the complex on one foundation doubtful? Elena Koroleva and Pavel Erin, experts from the GARANT Legal Consulting Service, talk about what to pay attention to in this case.

According to clause 6 of PBU 6/01, the accounting unit of fixed assets is an inventory object, which is, among other things, a separate complex of structurally articulated items (one or more items of one or different purposes, having common fixtures and accessories, general management, mounted on the same foundation, as a result of which each item included in the complex can perform its functions only as part of the complex, and not independently). An organization purchases a monitor, system unit, keyboard, etc. simultaneously and is accounted for as one inventory item. Is it possible to take them into account as separate inventory objects in terms of the criteria of PBU 6/01, given the absence of such a feature of a complex of structurally articulated objects as installation on one foundation?