How to calculate depreciation of fixed assets in accounting

Methods for calculating depreciation

Accounting has four options for calculating depreciation. You can learn more about the methods for calculating depreciation in PBU 6/01.

Depreciation should be calculated from the month following the month in which the asset was registered. Let’s say the computer was capitalized in October 2018, the accountant will begin calculating depreciation from November 1, 2018.

Depreciation calculation methods:

1. Linear.
2. Reducing balance method.
3. A method of writing off cost based on the sum of the numbers of years of useful life.
4. The method of writing off the cost is proportional to the volume of products (works).

Please note that the listed methods relate to depreciation of fixed assets in accounting. In tax accounting, there are only two ways to calculate depreciation charges - linear and non-linear.

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Linear method

Most often, practicing accountants use this method. It is very simple and clear.

To find out the amount of monthly depreciation, you should find the product of the original cost of the asset and the depreciation rate.

Depreciation rate = 1/SPI (months) x 100%.

Example. Funtik LLC registered a Samsung computer. The initial cost is 49,320 rubles. SPI - 5 years (60 months).

The depreciation rate for a Samsung computer = 1/60 * 100% = 1.67.

Monthly depreciation = 49,320 x 1.67% = 823.64 rubles.

Due to rounding, the amount of depreciation in the first months will differ from the amount of depreciation in the last month (the total amount of depreciation for the entire period should not be more than the original cost).

In practice, it is customary to calculate depreciation in a simpler and more accurate way.

Monthly depreciation = 49,320: 60 = 822 rubles.

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Reducing balance method

To find out the required amount, you will need the residual value of the fixed assets at the beginning of the year, SPI. Companies also have the right to use an acceleration factor from 1 to 3.

Example. Funtik LLC uses OS in production, the residual value of which as of 01/01/2018 is 49,320 rubles (the same amount is the initial cost). SPI - 60 months. The coefficient is set at 1.3.

2018

49,320: 60 x 1.3 = 1068.60 rubles per month

The amount of depreciation for 2021 will be 12,823.20 rubles (1068.60 x 12).

2019

Residual value as of 01/01/2019 = 49,320 - 12,823.20 = 36,496.80 rubles.

36,496.80: 60 x 1.3 = 790.76 rubles per month.

Depreciation in subsequent years is also calculated in this way. The residual value of the operating system is always taken as a basis. Thus, every year depreciation charges decrease.

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Method of writing off cost based on the sum of the numbers of years of useful life

The calculation is based on the initial cost and the sum of the number of years remaining until the end of the investment project.

Example. Funtik LLC uses OS in production, the initial cost of which is 49,320 rubles. SPI - 48 months (4 years). Depreciation is accrued from 01/01/2017.

First, let's determine depreciation rates.

2017 = 4 / (1 + 2 + 3 + 4) x 100% = 40%.

2018 = 3 / (1 + 2 + 3 + 4) x 100% = 30%.

2019 = 2 / (1 + 2 + 3 + 4) x 100% = 20%.

2020 = 1 / (1 + 2 + 3 + 4) x 100% = 10%.

This method allows you to write off most of the cost of the OS in the early years.

The amount of depreciation is determined by multiplying the original amount by the calculated rate.

Depreciation amount for 2021 = 49,320 x 40% = 19,728 rubles.

Monthly depreciation in 2021 = 19,728: 12 = 1,644 rubles.

The method of writing off the cost in proportion to the volume of products (works)

With this method, quantitative indicators of production (pieces, kilograms, etc.), the initial cost and the planned productivity of the operating system are taken as a basis.

Example . Pound LLC produces spare parts on the A458 machine. The machine was purchased in April 2021 and immediately put into operation. The initial cost of the A458 machine is 589,000 rubles. Over the entire period of use, it is planned to produce 350,000 units of products on this machine. In May, the machine produced 4,200 parts, in June - 3,100 units.

Depreciation in May = 589,000: 350,000 x 4,200 = 7,068 rubles.

Depreciation in June = 589,000: 350,000 x 3,100 = 5,216.86 rubles.

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How to calculate the depreciation rate

So, the percentage required to reimburse the price of the operating system is calculated using the formula:

% = 1 / SPI

Example

Calculation of depreciation rates.

A hardware processing company operates a turning and milling machine worth RUB 300,000. The SPI of the object is 20 years. Based on this information, you can calculate the amount of depreciation for the year:

300,000 rub. / 20 years = 15,000 rub.

The depreciation rate as a percentage will be equal to:

15,000 rub. / 300,000 rub. × 100% = 5%.

The depreciation rate is established depending on the depreciation calculation methodology adopted by the company. There are four possible accounting methods:

• linear, when deductions are made in equal shares over the full life of the object (as in the presented example);
• the declining balance method, in which deductions are calculated by the ratio of the depreciation rate to its residual (rather than original) value for each reporting year. Continuing the example, let's calculate the amount of depreciation for the next year. If in the 1st year of operation 5% of 300,000 rubles amounted to 15,000 rubles, then in the 2nd calculation it will be as follows: 5% of 285,000 rubles. (300,000 – 15,000), i.e. 14,250 rubles. In this case, the depreciation rate has not changed, but the amount of depreciation has decreased. When using accelerated depreciation, its rate for the year can be calculated using the formula % = K / SPI, where K is the increasing coefficient adopted in the company. It cannot be higher than 3;
• method of writing off the cost according to the aggregate SPI. When using this method, the calculation does not involve calculating the depreciation rate. However, understanding by it the share of the cost of the fixed assets object, recognized as the annual depreciation rate, the calculation formula may look like this: N = ChL / ∑CHL, where CHL is the number of years remaining until the end of the fixed investment period of the fixed assets object, and ∑CHL is the sum of the number of years of the fixed assets period. In our example, the calculation will be as follows: - in the 1st year % = 20 years / (1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 + 11 + 12 + 13 + 14 + 15 + 16 + 17 + 18 + 19 + 20) = 9.5%.
• Depreciation rate (NA) = 9.5% x RUB 300,000. = 28,500 rub.;
• — in the 2nd year % = 19 years / 210 = 9%
• NA = 9% x 30,000 = 27,000 rub. etc.;
• When applying this method, the depreciation rate will decrease, as will the amount of wear and tear.

When calculating depreciation rates for tax purposes, only two methods will be used - linear and nonlinear. Linear is the most popular and is used in 70% of existing companies. It is considered simple, concise and precise.

Example of calculating depreciation of fixed assets

Let's look at an example of how to calculate depreciation of fixed assets in practice.

Example

In January 2021, the organization accepted the facility into operation with an initial cost of 72,000 rubles. The fixed useful life is 3 years (36 months).

The linear depreciation method chosen by the organization provides for the following calculation of the annual depreciation amount: 72,000 × 1 / 3 = 24,000. Here 1/3 is the depreciation rate. It is calculated based on the specified number of years of operation. In fact, the annual amount can be obtained by simply dividing the cost by the number of years; in practice, this is how the calculation is made.

The monthly depreciation amount is equal to the result of dividing the annual amount by the number of months in the year: 24,000 / 12 = 2,000. Or, which is equivalent, the result of dividing the original cost by the number of months of use: 72,000 / 36.

Depreciation based on the sum of the numbers of useful years

This option is applicable for quickly writing off the costs of purchasing a fixed asset. Depreciation by the sum of the numbers of years is that at the beginning of the application of the fixed asset the amount of write-off will be high, and later the amount of depreciation decreases. This is the main difference between this method and the linear one, where depreciation write-offs are distributed in equal proportions over the entire period of operation.

Depreciation is determined by the sum of the numbers of years of useful use using the following indicators:

• initial cost of the OS;
• useful life period.

The advantage of the method is that at the beginning of the operating period, OS costs are written off faster than when using other methods. The full repayment period will ultimately coincide with the period of useful use of the fund.

In what situations is this depreciation option beneficial for the company?

1. If the company plans to quickly update the OS. Using depreciation based on the sum of the numbers of years, it will be possible to return the funds spent on the purchase of an object sooner than with other methods.
2. With rapid wear of equipment and a decrease in its performance indicators.
3. With rapid obsolescence of equipment.

Depreciation based on the sum of the numbers of years is one of the fastest options for writing off the costs of fixed assets.

However, this option of writing off the cost of the OS has not only advantages, but also some disadvantages of use. For example, the negative side of using this method may include a significant increase in the cost of goods produced, services provided or work performed at the beginning of the operating system operation period. This is explained by the fact that it is at this time that the maximum possible write-off of depreciation occurs.

The cost of products (work or services provided) will increase due to the above-described feature of the method. However, in the future, with a decrease in the volume of depreciation deductions, the cost will also decrease.

Depreciation period

Regulation of issues related to depreciation at the legislative level is carried out by the Tax Code of the Russian Federation (Articles 258, 259) and by the Government Resolution dated 01/01/2002 (as amended on 07/07/2016). These documents approve the classification of depreciable property depending on the periods of expected operation. In practice, these rules are applied in tax accounting.

Each business entity determines the depreciation period for the assets of the enterprise independently, taking into account the current accounting standards. The depreciation period begins from the date of commissioning of the object. For assets specified in depreciation classification groups, the maximum service life cannot be greater than the standard approved by the Government.

Depreciation after the end of its useful life ceases, the asset is taken out of service and is subject to write-off. But the Tax Code of the Russian Federation provides for the possibility of increasing the period of use of a fixed asset (within the maximum period for a specific depreciation group) after reconstruction or modernization.

Useful lives for groups of intangible assets are identified based on:

• validity period of patents;
• the time period for which the certificate was issued;
• operation restrictions in contract documentation.

If it is impossible to accurately determine the expected duration of use of an asset based on available documents, then in tax accounting it is necessary to apply a standard equal to 10 years, but not more than the taxpayer plans to work.

The depreciation period in accounting and tax accounting may not coincide. For accounting, operational standards are established by PBU 6/01 (clause), the time frame for using the asset should take into account only the expected period of operation and factors of moral and physical wear and tear. The enterprise Classifier has the right not to apply (in tax accounting, the use of the Classifier is mandatory).

In accounting for equipment that is used seasonally rather than year-round, a depreciation schedule is used. This document states:

• the amount of depreciation charges for each month, linked to periods of operation;
• months when the asset will not be used;
• months of active operation, between which the annual amount of depreciation will be distributed.

How to calculate useful life:

1. Determine the depreciation category for the fixed asset according to the legally approved Classifier of objects included in depreciation groups.
2. If there is no information in the classifier, take the period of operation specified in the technical documentation of the object.
3. Record the accepted period of use of the object on the inventory card.

Accounting for accrued depreciation

To summarize information about accrued depreciation, passive account 02 “Depreciation of fixed assets” is used. In the credit of account 02, in correspondence with the accounts for recording production costs (selling expenses), the amount of accrued depreciation charges is reflected. In this case, the following entries are made in accounting:

Debit 20 (23, 25, 44) – Credit 02 – reflects depreciation on fixed assets that are used in the production of products, when performing work and providing services.

If an organization (not a construction organization) makes capital investments (construction, modernization, reconstruction) using fixed assets, then it will make the following entry in accounting:

Debit 08.3 – Credit 02 – reflects depreciation on fixed assets that are involved in capital work.

If the fixed asset is used in service industries and farms, then the accrued depreciation is reflected as follows:

Debit 29 – Credit 02 – reflects the accrual of depreciation on fixed assets employed in service industries and farms.

Accrued depreciation on fixed assets that are used for management needs (i.e. not related to the main production process) is charged to account 26:

Debit 26 – Credit 02 – reflects depreciation on fixed assets that are used for management purposes.

Analytical accounting for account 02 is carried out for inventory items.

Example 5.

The organization Fuel Systems LLC purchased a computer for an IT department employee in December. Its initial cost was 53,100 rubles, including VAT (18%) – 8,100 rubles. In the same month, the facility was put into operation as a fixed asset. Based on the Company's accounting policy, for accounting purposes, the useful life of the computer was established in accordance with the Classification of fixed assets with a duration of 2.5 years (2nd depreciation group); The method of calculating depreciation is linear.

Solution.

The accountant at Fuel Systems LLC will reflect the receipt of the computer with the following entries.

In accounting, the organization will begin to depreciate the object in January (clause 21 of PBU 6/01). Calculation of depreciation charges by computer:

1. On = 100% : Sleep = 100% : 2.5 g = 40%,
2. Agod = Ps x Na = 45,000 rub. x 40% = 18,000 rub.,
3. Ames = Agod: 12 months. = 18,000 rub. : 12 months = 1,500 rub.

End of example

Comparison of depreciation methods

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Depreciation refers to the transfer of the value of an enterprise's fixed assets (buildings, structures, machinery, equipment, tools) to the manufactured product, carried out gradually, as physical and moral wear and tear occurs over a more or less long time. Methods of calculation play a significant role in the depreciation system. They actively influence the volume of the depreciation fund intended for the reproduction of fixed assets, the amount of deductions included in the cost of production, and ultimately the formation of the organization’s financial strategy. Therefore, one of the important tasks when developing a depreciation policy is to determine an effective method for depreciating funds. Regulatory acts governing accounting (Accounting Regulations “Accounting for Fixed Assets” PBU 6/01, approved by Order of the Ministry of Finance of Russia dated March 30, 2001 N 26n; hereinafter referred to as PBU 6/01) and tax (Tax Code of the Russian Federation - Tax Code of the Russian Federation) accounting , there are different rules for calculating depreciation. Let's analyze the pros and cons of each method (methods) using a specific example. Let’s say that at the beginning of 2006, an organization put into operation a new grinding machine, the initial cost of which was 300,000 rubles. The organization has set the service life of the facility as 5 years. In accordance with the Decree of the Government of the Russian Federation dated January 1, 2002 N 1 “On the Classification of fixed assets included in depreciation groups,” the object is assigned to the 3rd group with a useful life of 3 to 5 years. According to clause 18 of PBU 6/01, depreciation of fixed assets is calculated in one of the following ways: - linear method; - reducing balance method; - the method of writing off the cost by the sum of the numbers of years of useful life; — by writing off the cost in proportion to the volume of products (works). One of the methods of calculating depreciation for a group of homogeneous fixed assets is applied throughout the entire useful life of the objects included in this group. The most common is the straight-line depreciation method . With the straight-line depreciation method, the annual amount of depreciation is determined based on the original cost or current (replacement) cost (in case of revaluation) of an object of fixed assets and the depreciation rate calculated based on the useful life of this object. In this case, the annual amount of depreciation charges will be:

Ar = Na x C: 100%,

where Na is the annual depreciation rate, %; C - book value of fixed assets, thousand rubles. The advantages of the linear method of calculating depreciation are the uniformity of contributions to the depreciation fund, stability and proportionality in attribution to the cost of products, simplicity and high accuracy of calculations. Using the straight-line write-off method, the annual depreciation rate in the example under consideration will be 20% of the depreciable cost (100% / 5 years), the annual amount of depreciation charges is 60,000 rubles. (RUB 300,000 x 20%). Depreciation accrual over five years is reflected in table. 1.

Table 1. Calculation of depreciation: linear method (rub.)

From the table 1, the following conclusions can be drawn: 1) for all 5 years, depreciation charges are the same; 2) accumulated wear increases evenly; 3) the residual value decreases uniformly. Straight-line depreciation should be used in cases where it can be assumed that an asset generates the same income over its entire life and the asset's remaining usefulness declines evenly. For fixed assets, the depreciation of which is directly related to the frequency of their use, the method of writing off the cost in proportion to the volume of work performed . With this method, depreciation is calculated based on the natural indicator of the volume of production (work) in the reporting period and the ratio of the initial cost of the fixed asset object and the expected volume of production (work) for the entire useful life of the fixed asset object:

Ar = Qi x (C : Qn),

where Qi is the volume of production in the i-th year of production in value terms; C - the initial cost of the fixed asset; Qn is the estimated volume of production over the entire useful life in value terms. This method takes into account the specific operating conditions of certain types of fixed assets. If earlier this method was used, essentially, only when calculating depreciation on vehicles, taking into account mileage, now it can be used for many types of production equipment in cases where the volume of production can be associated with fixed assets, as a result of the operation of which it was obtained. Let's assume that the machine is designed for a production volume of 30,000 units. Depreciation costs per unit will be determined as follows: 300,000 / 30,000 = 10 rubles. Depreciation charges by year of operation are given in table. 2.

Table 2. Depreciation calculation: method of writing off cost in proportion to the volume of products (work) (rub.)

Based on the data in table. 2, the following can be noted: 1) there is a direct connection between the annual amount of depreciation and the volume of output; 2) accumulated wear and tear increases annually in direct proportion to units of work; 3) the residual value decreases annually in direct proportion to the output volume; 4) this method is the most economically feasible, but it must be used in the case where the output of an object during its useful life can be determined with sufficient accuracy. If, according to the organization’s calculations, it is economically profitable to write off the book value of an object as quickly as possible, then the method of writing off the value by the sum of the numbers of years of useful life . With this method, the annual amount of depreciation charges is determined based on the original cost of the fixed asset object and the annual ratio, where the numerator is the number of years remaining until the end of the asset’s service life, and the denominator is the sum of the numbers of years of the asset’s service life. The dependence of the sum of the numbers of years of the useful life of the object (S) on the expected service life of the object (N) is calculated by the formula:

S = N x (N + 1) / 2.

Using this formula, we determine the sum of the numbers of years of service life of the grinding machine, which will be 15 (cumulative number). For each year of operation of the facility, depreciation will be charged in the appropriate amount (5/15; 4/15; 3/15; 2/15; 1/15) of the original cost of the facility (Table 3).

Table 3. Depreciation calculation: method of writing off value by the sum of the numbers of years of useful life (rub.)

From the table 3 shows that the highest amount of depreciation is charged in the first year, and then year after year it decreases, accumulated depreciation increases slightly, and the residual value decreases every year. Uniform calculation of depreciation using the considered proportional methods does not provide the concentration of resources necessary for the rapid replacement of equipment subject to the active influence of obsolescence. The stimulating role of depreciation increases significantly with the use of accelerated depreciation methods. Accelerated depreciation methods for domestic practice are quite new, but in market conditions they become the most optimal. They are used for fixed assets whose value decreases depending on their useful life; obsolescence sets in quickly; the cost of restoring an object increases with increasing service life. These methods of calculating depreciation do not change the volume of depreciation of fixed assets over the entire period of their useful use, but only redistribute it over individual periods throughout their entire service life. The accelerated method in the Russian Federation includes the reducing balance method . It must be applied when a stable trend towards a decrease in profit from the use of fixed assets is formed. In this case, the annual amount of accrued depreciation is calculated based on the under-depreciated cost determined at the beginning of the reporting year and the depreciation rate calculated based on the useful life of the object and the acceleration factor adopted by the organization. The amount of depreciation charges in the i-th year using this method will be:

Ai = (Ci - Ai - 1) x Na,

where Ci is the residual value of the object; Аi is the amount of depreciation charges in the i-th year; Na is the depreciation rate. Using the declining balance method, the depreciation rate for the machine will be 40% (2 x 20%). This fixed rate applies to the residual value at the end of each year (Table 4).

Table 4. Calculation of depreciation: reducing balance method (rub.)

As can be seen from table. 4, the fixed depreciation rate was always applied to the previous year's residual value. The amount of depreciation (highest in the first year) decreases from year to year. However, part of the original cost of the object remains under-depreciated after the entire period, i.e. This method does not guarantee complete write-off of cost: the annual amount of depreciation is reduced, and depreciation is extended over many years. For comparative analysis, we summarize the amounts of depreciation deductions obtained in the calculations in table. 5.

Table 5. Calculation of depreciation: all methods (rub.)

Thus, with any method of calculating depreciation, the total amount of depreciation charges for the entire useful life of the object is equal to the depreciable cost of fixed assets. However, the amount of annual depreciation varies significantly depending on the adopted method of its calculation (see chart).

Analysis of the graph allows us to draw the following conclusions: - annual depreciation charges in accordance with the linear method for 5 years are at the same level - 60,000 rubles; — with the write-off method based on the sum of the numbers of years and the declining balance method, the accrued depreciation amounts for the first year are significantly greater (100,000 rubles and 120,000 rubles, respectively) and the reduction in the annual amount is less than with the linear method; — the method of calculating depreciation in proportion to the volume of work performed does not provide an idea of ​​a clear trend in changes in depreciation due to sharp fluctuations in the amount of depreciation from year to year. When choosing one of these methods for calculating depreciation, the organization must remember that the accrued amount of depreciation affects the cost of products, work performed, services rendered. However, another factor on which the choice of depreciation method depends is the restrictions imposed on the amount of depreciation deductions by tax legislation, since the residual value of property is a component of the tax base for property tax (clause 1 of Article 375 of the Tax Code of the Russian Federation). A comparison of accrued property tax using the linear method and the write-off method based on the sum of the numbers of years of useful life is given in Table. 6.

Table 6. Amount of property tax for various methods of calculating depreciation (rub.)

Data analysis table. 6 shows that with the linear method of calculating depreciation, the amount of property tax on the specified fixed asset object for the entire period of operation will be 13,200 rubles. (in calculations, the property tax rate is assumed to be 2.2%). Using a different method of calculating depreciation will reduce the tax by 1.5 times. In table 6 only two methods are considered, since the use of other methods in the given case is inappropriate. The reducing balance method does not allow achieving the desired result, since in the first year the amount of accrued depreciation using this method is equal to the amount of depreciation accrued using the straight-line method, and in subsequent years the amount of depreciation will decrease compared to the straight-line method. Consequently, the residual value of the fixed asset will be greater than with the linear method. In addition, paying off the cost of a depreciable object in a decreasing progression means that the accrued depreciation will never reach 100%. The method of writing off cost in proportion to the volume of output is used extremely rarely in practice due to technical difficulties in calculations. The results of its application to optimize property tax directly depend on the organization’s ability to correctly predict the volume of its activities. Thus, of all four methods of calculating depreciation of fixed assets, from a taxation point of view, the winning method is the method of writing off the cost by the sum of the numbers of years of the useful life. The methods discussed above are used for accounting purposes. In tax accounting, an organization can use one of two methods of depreciation of fixed assets (clause 1 of Article 259 of the Tax Code of the Russian Federation): linear or non-linear. In accordance with paragraph 3 of Art. 259 of the Tax Code of the Russian Federation, the depreciation calculation method chosen by the taxpayer cannot be changed during the entire period of depreciation calculation for the depreciable property. When applying the linear method, the amount of depreciation accrued for one month is determined as the product of the original (replacement) cost of the object and the depreciation rate established for it. The depreciation rate for each object is calculated using the formula:

K = (1/n) x 100%,

where K is the depreciation rate as a percentage of the original (replacement) cost of the depreciable property; n is the useful life of the object, expressed in months. Let's calculate depreciation for the grinding machine for tax purposes. In this case, the depreciation rate will be 1.67% per month (1/60 months x 100%) or 20% per year (1/5 years x 100%). Every month the organization will charge depreciation in the amount of 5,000 rubles. (300,000 x 1.67%) or 60,000 rub. in year. It is typical for linear depreciation that the cost is written off evenly and by the end of the useful life, a zero book value is reached (Table 7).

Table 7. Calculation of depreciation: tax linear method (rub.)

When applying the non-linear method, the amount of depreciation accrued for one month for each depreciation group (subgroup) is determined based on the product of the total balance of the corresponding depreciation group (subgroup) at the beginning of the month and depreciation rates (Table 8):

A = B x K / 100%,

where A is the amount of depreciation accrued for one month; B—total balance; K is the depreciation rate.

Table 8. Depreciation rates (clause 5 of Article 259.2 of the Tax Code of the Russian Federation)

In the example under consideration, the depreciation rate when using the non-linear method will be equal to 5.6%. Unlike the straight-line method, the depreciation rate is applied not to the original cost, but to the residual value. The annual amounts of depreciation using the non-linear method are presented in table. 9.

Table 9. Calculation of depreciation: tax non-linear method (rub.)

The calculations were based on the fact that the amount of accrued depreciation is: 1st month 300,000 x 5.6% = 16,800 rubles; 2nd month (300,000 - 16,800) x 5.6% = 15,859.2 rubles; 3rd month (300,000 - 16,800 - 15,859.2) x 5.6% = 14,971.08 rubles. etc. Based on the table. 9, the following conclusions can be drawn: 1. The non-linear method of calculating depreciation allows you to initially write off much larger amounts of depreciation as expenses compared to the linear method. This happens due to the high standards established for depreciation groups, but these standards are multiplied by the residual value, which becomes less and less. Thus, the amount of depreciation using the non-linear method will decrease every month. 2. In accordance with paragraph 12 of Art. 259.2 of the Tax Code of the Russian Federation, if the total balance of the group becomes less than 20,000 rubles, it can be liquidated by writing off the remaining balance to non-operating expenses. That is, at first glance, we obtain an analogue of the norm used in the linear method. However, with the linear method, the 20 thousand limit is applied to a specific object, and with the non-linear method - to the group. And the company has the right to write off its value only on the condition that the total balance of the group does not increase due to the receipt of new objects. As a rule, the use of a nonlinear method is beneficial to the taxpayer. As stated above, in the first half of an asset's useful life, most of its value is written off. Accordingly, more expenses will be recognized in the first half of the asset's life compared to straight-line depreciation. At the same time, it should be understood that the nonlinear method does not increase the amount of depreciation, but only redistributes it over time. Thus, in the second half of the depreciation period, fewer depreciation expenses will be written off as expenses compared to the straight-line method. Moreover, writing off expenses earlier is more profitable, since it defers the payment of income tax. When choosing a depreciation method, you need to carefully consider the tax implications. The use of a non-linear depreciation method is beneficial for a “profitable” organization and usually disadvantageous for a “unprofitable” organization - it is better for it to transfer expenses to future periods so as not to plan for losses under Art. 283 Tax Code of the Russian Federation.

Modernization of fully depreciated fixed assets: Resuming the calculation of tax depreciation using the straight-line method

Amortization of intangible assets in accounting and tax accounting

Disposal of depreciable property

Non-linear depreciation method - income tax

Straight-line depreciation method - income tax