Accounting account 02 (depreciation of fixed assets in accounting)

Depreciation of fixed assets in accounting and tax accounting

During use, OSs lose their value due to wear and tear. Depreciation is the inclusion by fixed assets of their value over a certain period of time in finished products, works, and services.

Fixed assets in accounting and tax accounting have different criteria for classifying objects according to their value.

In addition, not all methods of calculating depreciation can be used in tax accounting. For this reason, there may be discrepancies in the amount of depreciation in accounting and when determining taxes.

For tax accounting purposes

The Tax Code of the Russian Federation establishes that fixed assets will be objects with a long service life and a price of 100,000 rubles and more.

Depreciation of fixed assets is calculated based on the original cost and the depreciation rate, which is determined based on the period of operation of the object.

Objects priced below 100,000 rubles must be shown in accounting as materials, so their price is immediately included in the cost of finished products.

The same objects that are defined as basic in tax accounting must be depreciated either linearly or nonlinearly.

The first of them involves determining the depreciation rate based on the useful life. The depreciation rate per year is calculated by dividing the unit by the useful life and multiplying by 100%. This method can be applied in tax accounting to all fixed assets.

Attention! The nonlinear method is applied only to operating systems whose application period does not exceed 20 years (group 1-7). Depreciation is determined based on the residual value of the object and the depreciation rate, which is determined for each group based on the period of use of the asset.

For accounting purposes

PBU establishes that fixed assets in accounting include objects with a price of 40,000 rubles or more. Subjects have the right to charge objects with a price less than the established criterion as expenses as materials. For objects that are priced as fixed assets, depreciation charges must be calculated.

In this case, companies and individual entrepreneurs have the right to use one of certain methods:

• Linear - by multiplying the original cost by the depreciation rate calculated based on the useful life.
• Declining balance method (non-linear) - by multiplying the residual value by the depreciation rate calculated based on the useful life.
• Proportional to the number of remaining years of use - the initial cost is multiplied by a coefficient defined as the number of years of use of the OS by the sum of the number of years of use.
• Proportional to the volume of products produced - the initial cost is multiplied by the number of products produced and divided by the planned volume of products that can be produced at the facility for the entire period of its use.

You might be interested in:

08 accounting account - “Investments in non-current assets”

Calculation of depreciation for accounting purposes

There are four ways to calculate depreciation of fixed assets:

• linear method;
• reducing balance method;
• method of writing off value by the sum of the numbers of years of useful life;
• method of writing off cost in proportion to the volume of products (works).

To calculate depreciation, you must divide all fixed assets of your organization into homogeneous groups of objects united by common characteristics.

For objects of one group of fixed assets, you can use only one of the listed methods.

When is depreciation not calculated?

The accounting rules provide for cases when depreciation of fixed assets is not carried out:

• Depreciation is not calculated for land plots and environmental management facilities due to the fact that their characteristics remain the same over the years.
• Objects that have not been used for more than three months, that is, transferred for conservation
• Depreciation is not calculated on fixed assets received free of charge.
• If the object has been received by the company and requires installation and modification. That is, while it is listed as construction in progress (account 08), depreciation on it is not calculated.
• For objects that, on the basis of the rules established by accounting policies, are transferred to the inventory.
• For leased OS objects.

Posting examples

As for the postings, in a real case there are a lot of them, since accounting for fixed assets is a complex task, and there can be a significant number of fixed assets in a company. When using computer programs, all transactions are generated automatically by the corresponding documents.

In the 1C: Accounting program, the actual amount of depreciation is accrued on Kt 02 when posting the “Month Closing” document. This operation is a routine operation and is recorded as the last operation of the month. By debit, the postings may contain different accounts, for example:

• Dt 20.01 - Kt 02.01 An example of calculating depreciation of a fixed asset used in production.
• Kt 26 - Kt 02.01 An example of depreciation for non-production fixed assets.

The debit analytics in the transactions shown depend on the account used. You can look at the chart of accounts to determine this. In the screenshot below you can see an example from the training base of our video course related to depreciation calculation.

When a fixed asset is disposed of, the amount of depreciation accumulated on 02 is written off. The wiring in this case looks something like this:

• Dt 02.01 – Tt 01.01

Operations for accounting for fixed assets, including the calculation and write-off of depreciation, are discussed in our training video course for the 1C: Accounting 8.3 program, as well as in the corresponding online courses for studying this program.

You can give your examples of using account 02 and its subaccounts in the comments after the article. Be sure to share your opinion - this helps other novice accountants and users of the 1C: Accounting program better understand accounting.

The procedure for determining the useful life of property

When determining the period of use of an OS object, a business entity must be guided by the following rules:

• First of all, it is necessary to use the approved OKOF classification. It is a table that lists all kinds of OS groups and the corresponding period of use. Typically the period is specified as an interval (for example, 10 to 15 years). A business entity has the right to choose any number of years included in this period.
• If an OS object is not assigned to any group according to the classifier, then it is necessary to establish the time of its use based on technical documentation or recommendations of the manufacturer (an indication of this is established by the Tax Code);
• If this information cannot be obtained, then you must contact the Ministry of Economic Development.

Attention! The established useful time must be secured at the disposal of the manager, or recorded in the transfer and acceptance certificate OS-1.

When determining the period of use for an OS that has already been in use, it is necessary to determine its period according to the group and subtract from it the time of operation at the previous place of work.

If the last period cannot be determined, then the company sets the time of use independently, but taking into account safety requirements. The law establishes the conditions under which it is possible to change the period of use of the OS after its commissioning.

This can be done in the following cases:

• Upon completion;
• When retrofitting;
• During reconstruction;
• During modernization.

Attention! The main conditions for extending the period are the fact that the characteristics of the OS object have changed so that it can be used longer than the previously determined period. However, the application time can only be extended to the previously accepted time of use.

Characteristics of account 02

To account for the amounts of calculated depreciation of fixed assets, account 02 “Depreciation of fixed assets” is used. It is passive, i.e., the calculated depreciation amounts on it are shown as a credit, and their write-offs are shown as a debit.

The account has the following structure:

• Initial loan balance - shows the amount of accumulated depreciation at the beginning of the billing period;
• Debit turnover - shows the amount of depreciation written off due to disposal of fixed assets, sale, etc.;
• Loan turnover - shows the amount of accrued depreciation;
• Final loan balance - shows the amount of accumulated depreciation at the end of the billing period.

The final balance is determined using the following algorithm: credit turnover is added to the initial balance and debit turnover is subtracted.

You might be interested in:

Account 90 in accounting: what is it used for, characteristics, examples of postings

For reliable and complete reflection of information, analytical accounts are opened for each asset object.

The balance of this account is not reflected directly in the balance sheet. The balance on it reduces the balance on account 01.

Attention! Account 02 is closed only when an asset is completely written off from the balance sheet - upon sale, liquidation, etc. Until this point, the balance should always be there and show the amount of wear and tear on the asset at the current time. The account is closed by writing off the balance to account 01 or 91.

How to fill out the balance sheet for account 02

Analytical accounting by account. 02 is maintained for each of the fixed assets inventory items in order to obtain reliable information about depreciation accumulations. The construction of analytical accounting begins with the opening of subaccounts. After this, a balance sheet is generated for account 02, and the loan balance at the end of the accounting period is reflected in the accounting records - balance sheet (in a special way in the asset, as described above).

You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

As usual, to create such a register, special databases are used (for example, “1C: Accounting”), with the help of which it is easy to summarize the results and detailed balances of accumulated depreciation charges for each inventory item. This is fully consistent with the requirements specified in clause 32 of PBU 6/01, approved. by order of the Ministry of Finance dated March 30, 2001 No. 26n.

The opening credit balance in the register is the total value of depreciation accumulated at the beginning of the accounting period. Outgoing credit balance is a similar value, but at the end of the period. Debit turnover is written-off depreciation upon disposal of fixed assets, and credit turnover is accrued depreciation.

The credit final balance for account 02 is subtracted from the debit balance of account 01 “Fixed Assets” when filling out line 1150 of the balance sheet.

The total amount of depreciation charges for the year is determined by one of the existing methods listed in clause 19 of PBU 6/01. The amount of depreciation for each inventory item is determined based on its useful life. All property objects can be classified into one of 10 depreciation groups according to the Classifier, approved. Decree of the Government of the Russian Federation dated January 1, 2002 No. 1.

Which accounts does it correspond with?

From debit 02 accounting account to credit accounts:

• sch. 01 — Write-off of calculated depreciation for fixed assets retired for various reasons;
• sch. 02 — Transfer of depreciation of leased fixed assets to a separate account that has become property;
• sch. 79 — Write-off of depreciation on fixed assets that were transferred to another separate division or received from it;
• sch. 83 — Write-off of previously calculated depreciation for additional capital during revaluation.

To credit account 02 from debit accounts:

• sch. 02 — Transfer of accrued depreciation to another account for leased fixed assets that have become the property of the lessee;
• sch. 08, 20, 23, 25, 26, 29, 44, 90, 91, 97 - depreciation of fixed assets;
• sch. 79 — Accrual of depreciation transferred to other structural units;
• sch. 83 — Additional depreciation at the expense of additional capital when revaluing fixed assets;
• sch. 91 — Depreciation on fixed assets that are leased, if this is not the main source of income.

Accounting entries for account 02

See full 2021 chart of accounts.

Account 02 is involved in the following standard transactions.

Depreciation calculation based on the degree of participation of fixed assets in the production process

Write-off of accrued depreciation

Description of the account “Depreciation of fixed assets accounted for on account 01”

Subaccount 02.01 “Depreciation of OC accounted for in account 01” is necessary to summarize the necessary information about the depreciation of fixed assets that belong to the enterprise as a whole as property and which are necessarily accounted for in account 01 “OC”.

Accounting analysis is carried out for individual inventory items of fixed assets (main sub-account “OC”). It is mandatory that each inventory item of fixed assets must be an element of the directory Fixed Assets .