After the end of its useful life, depreciation

What is depreciation

In accounting, depreciation is calculated according to the rules established by paragraphs 17-25 of PBU 6/01, approved by Order of the Ministry of Finance of the Russian Federation dated March 30, 2001 No. 26n (hereinafter referred to as PBU 6/01). Depreciation is the process of monthly transferring the cost of fixed assets to the costs of the current period. That is, by calculating depreciation, the cost of property assets is transferred to the cost of manufactured products (work performed, services provided), in other words, repaid (clause 17 of PBU 6/01).

In accordance with clause 49 of the Guidelines for accounting of fixed assets, approved by Order of the Ministry of Finance of the Russian Federation dated October 13, 2003 No. 91n (hereinafter referred to as Guidelines No. 91n), is subject to depreciation is :

• belongs to the organization by right of ownership;
• are under the organization’s economic control (or operational management);
• leased by an organization (or trust management, free use).

Depreciation is calculated (clause 49 and clause 50 of Methodological Instructions No. 91n):

• organization - for fixed assets owned by it;
• by the lessor - for fixed assets leased out;
• by the tenant - for fixed assets included in the property complex under the lease agreement of the enterprise (in the same manner as for fixed assets owned by right of ownership);
• by the lessor or lessee - for fixed assets that are the subject of a financial lease agreement (depending on the terms of the agreement).

Depreciation is not accrued according to (paragraphs 2-5, paragraph 17 of PBU 6/01, paragraphs 2 and 3, paragraph 49 of Methodological Instructions No. 91n):

• objects for mobilization purposes (mothballed and not used in the organization’s activities);
• objects of non-profit organizations (for such objects, depreciation is accrued using a linear method, which is recorded in off-balance sheet account 010 “Depreciation of fixed assets”);
• housing assets (residential buildings, dormitories, etc.), with the exception of those related to profitable investments in material assets (i.e., accounted for in account 03 and used to generate income);
• objects whose consumer properties remain unchanged over time (land plots, environmental management objects, objects classified as museum objects and museum collections, etc.).

Useful life

Fixed assets are depreciated over their useful life (LPI). The organization determines it independently when accepting an object for accounting based on the following criteria (clause 20 of PBU 6/01, paragraph 2 of clause 59 of Methodological Instructions No. 91n):

1. expected period of use (depending on the productivity and capacity of the facility);
2. expected physical wear and tear (depending on the mode of use (number of shifts), the influence of natural conditions and aggressive environment, the system of repair work, etc.);
3. other restrictions on use (regulatory, contractual, etc.).

The above procedure for determining the useful life also applies to used objects (paragraph 2, paragraph 59 of Methodological Instructions No. 91n).

Reference. Organizations received the opportunity to independently set their useful life after PBU 6/97 came into force on January 1, 1998. Until this point, the cost of fixed assets was repaid during the standard (in relation to machinery, equipment and vehicles) or actual service life (in relation to other funds).

However, most organizations, in order to determine SPI in accounting, use the tax Classification of fixed assets included in depreciation groups (hereinafter referred to as the Classification of Fixed Assets). This possibility is provided for in clause 1 of the Decree of the Government of the Russian Federation dated January 1, 2002 No. 1. This is done in order to bring together accounting and tax accounting data.

The choice of a specific procedure for determining the useful life must be recorded in the accounting policy of the organization for accounting purposes (clause 7 of PBU 1/2008).

Once the SPI of a fixed asset has been established, it is not subject to revision, except in cases where, as a result of restoration work, the initially adopted standard indicators of the object’s functioning are improved (increased). Such cases include (paragraph 6, paragraph 20 of PBU 6/01, paragraph 1, paragraph 60 of Guidelines No. 91n):

1. reconstruction;
2. modernization;
3. completion;
4. retrofitting

Notice! In accordance with paragraph 20 of PBU 6/01, the organization must review the useful life of the modernized (reconstructed) facility, but whether to change it or not remains its decision. This is the right of the organization.

According to clause 21 of PBU 6/01, the organization begins to depreciate fixed assets from the 1st day of the month following the month of its acceptance for accounting. This rule also applies to real estate, the ownership of which is subject to mandatory state registration. As follows from paragraph 52 of Methodological Instructions No. 91n, if the initial cost of real estate is formed, it must be accepted for accounting as a fixed asset. In this case, the organization does not have to wait until it submits the necessary documents to the registration authority to legitimize its rights to the object.

Depreciation on a fixed asset is not suspended throughout its useful life. But there are two exceptions to this rule (clause 23 of PBU 6/01):

— transfer of the object to conservation for a period of more than 3 months by decision of the manager; — restoration (reconstruction, modernization) of the facility for a period of more than 12 months.

In all other cases (repairs, seasonal nature of work), depreciation on a fixed asset must be accrued regularly, regardless of the fact of its use in the organization’s activities.

The organization stops depreciating fixed assets from the 1st day of the month following the month of full repayment of its cost or writing off the asset from accounting (clause 22 of PBU 6/01).

Wind generator

- a device for converting kinetic wind energy into electrical energy. Wind generators can be divided into two categories: industrial and domestic (for private use). Industrial ones are installed by the state or large energy corporations. As a rule, they are combined into a network, resulting in a wind power plant. Its main difference from traditional ones (thermal, nuclear) is the complete absence of both raw materials and waste. The only important requirement for wind farms is a high average annual wind level. The power of modern wind generators reaches 6 MW.

When using a wind generator in a household, it is most economically feasible to obtain, with the help of wind generators, not electrical energy of industrial quality, but direct or alternating current (variable frequency), followed by converting it with the help of heating elements into heat, for heating housing and obtaining hot water. This scheme has several advantages:

• Heating is the main energy consumer of any home in Russia.
• The circuit of the wind generator and control automation is radically simplified.
• In the simplest case, an automation circuit can be built on several thermal relays.
• A regular water boiler for heating and hot water supply can be used as an energy accumulator.
• Heat consumption is not so demanding in terms of quality and continuity; the air temperature in the room can be maintained in a wide range: 19-25°C; in hot water boilers: 40-97°C, without harm to consumers.

Homemade wind generators

It is not difficult to make a wind generator with your own hands; for a country house you can install a homemade wind generator from a bicycle wheel. From one such wind generator you can get a current of 2A and a voltage of 16 volts with a wind of about 4-5 meters per second.

If the wind speed does not rise above 3 meters meters per second, then you can install an Abramov rotary wind generator, such a wind generator allows you to generate current, even work even with low wind strength up to 1 meter per second.

The main difference between rotary wind generators

(with a vertical axis of rotation) from classic wind generators with a propeller is that it works in any wind direction. When using a wind generator with a vertical axis of rotation, there is no need to rotate the installation perpendicular to the direction of the wind.

If you need to make a completely autonomous energy supply for a cottage with high power consumption, then you should use professional literature, for example the book “Homemade Wind Power Plant”.

The book “Homemade Wind Power Plant” discusses the manufacture of a high-power wind turbine and describes ways to solve emerging problems, for example, limiting the rotation speed of a wind turbine.

Sources

• Wikipedia - informational article about wind turbines.
• Power plants - a selection of articles about power plants, including wind generators.

Methods for calculating depreciation

The norm of clause 18 of PBU 6/01 provides for 4 methods of calculating depreciation for accounting purposes :

1. linear method;
2. reducing balance method;
3. method of writing off value by the sum of the numbers of years of useful life;
4. a method of writing off cost in proportion to the volume of products produced.

The organization's accounting policy for accounting purposes establishes the method of calculating depreciation in relation to fixed assets (or groups of similar objects). At the same time, paragraph 18 of PBU 6/01 states that the method of calculating depreciation established for a group of homogeneous objects is applied throughout the entire useful life of these objects, that is, for homogeneous fixed assets already in use, the method of calculating depreciation is not subject to change. However, neither PBU 6/01 nor Guidelines No. 91n contain a definition of the concept of groups of homogeneous objects and the principles of their formation.

Some organizations take as a basis the grouping of property objects according to the OS Classification. However, this distribution option is not correct enough, since it does not meet the principle of homogeneity of fixed assets.

Officials of the financial department, in their letters dated January 12, 2006 No. 07-05-06/2, dated February 1, 2006 No. 07-05-06/20, advise forming groups of homogeneous objects based on the characteristics of the purpose of these objects. So, when grouping homogeneous objects, an organization can be guided by clause 44 of Methodological Instructions No. 91n, where groups such as buildings, structures, vehicles, etc. are given as an example. Provisions for the formation of groups of homogeneous objects must be prescribed in the accounting policy.

According to paragraph 8 and paragraph 9 of PBU 1/2008, accounting methods, including methods for calculating depreciation on fixed assets, are subject to application from January 1 of the year following the year of approval of the relevant organizational and administrative document (order , orders, etc.).

Regardless of which method of calculating depreciation the organization has chosen, during the reporting year it must charge monthly depreciation charges in the amount of 1/12 of the annual amount for each fixed asset item (clause 19 of PBU 6/01). In this case, the annual amount is calculated according to a certain formula depending on the method of calculating depreciation. This rule also applies to fixed assets that are used by organizations seasonally due to the nature of production. (The exception is the write-off method in proportion to the volume of output, where the monthly depreciation rate is calculated using a given formula.)

If an item of fixed assets is accepted for accounting during the reporting year, then the annual amount of depreciation is the amount determined from the first day of the month following the month of acceptance of this item for accounting until the reporting date of the annual financial statements (clause 55 of the Guidelines No. 91n).

Linear method of calculating depreciation

The linear method is the main and most used. The annual amount of depreciation is determined based on the initial (replacement - in case of revaluation) cost of the fixed asset and the depreciation rate, which is calculated based on the useful life (clause 19 of PBU 6/01, clause 54 of Methodological Instructions No. 91n).

The procedure for calculating depreciation charges:

1. At = 100%: Sleep,
2. Agod = Ps x Na,
3. Ames = Agod: 12,

Where:

• Agod – annual amount of depreciation;
• Ames – monthly depreciation amount;
• Ps – initial (replacement) cost of the fixed asset;
• Na is the depreciation rate;
• SP is the useful life of a fixed asset.

The graphs below show the dynamics of the annual amount of depreciation, residual value and depreciation fund (accumulated depreciation), provided that the fixed asset is depreciated in a linear manner.

Fig.1. Graphs for the straight-line depreciation method: (1) annual depreciation; (2) residual value; (3) sinking fund

Example 1.

LLC "Kantselyariya" purchased a warehouse for finished products. The initial cost of the fixed asset was RUB 3,000,000. By decision of the manager, the useful life of the facility was set at 25 years. In accordance with the Company's accounting policy, for accounting purposes, depreciation on all fixed assets is calculated using the straight-line method.

Solution.

Calculation of depreciation charges:

1. Depreciation rate(Na): 4% (= 100%: 25 years);
2. Annual depreciation amount (Agod): RUB 120,000. (= RUB 3,000,000 x 4%);
3. Monthly depreciation amount (Ames): RUB 10,000. (= RUB 120,000: 12 months).

End of example

Reducing balance method

If the efficiency of use of fixed assets decreases every year, then the organization has the right to use the reducing balance method . However, it is worth considering how the use of this method will affect the amount of property tax and the cost of manufactured products (work performed, services provided).

The annual amount of depreciation is determined based on the residual value of the fixed asset and the depreciation rate, which is calculated on the basis of its useful life, as well as an acceleration factor not exceeding 3 (clause 19 of PBU 6/01). The specific value of the coefficient is established by the organization. The decision must be fixed in the accounting policy for accounting purposes.

According to the norm of paragraph 54 of Methodological Instructions No. 91n, the following acceleration coefficients can be used:

— coefficient 2 – small businesses; - coefficient 3 (in accordance with the terms of the agreement) - in relation to movable property that is the object of financial leasing and related to the active part of fixed assets.

Here the question arises: is it possible to use accelerated depreciation in relation to any fixed assets depreciated using the reducing balance method, guided by clause 19 of PBU 6/01?

The courts note (Resolution of the Supreme Arbitration Court of the Russian Federation dated 07/05/2011 No. 2346/11, Resolution of the FAS ZSO dated 06/03/2014 No. A27-8854/2013) that the regulations of PBU 6/01 and Guidelines No. 91n must be applied in conjunction . Therefore, organizations do not have the right to arbitrarily set an acceleration factor for any fixed assets and must take into account the conditions under which the right to apply accelerated depreciation arises.

The procedure for calculating depreciation charges:

1. At = 100%: Sleep,
2. Agod = Os x Na x Kusk,
3. Ames = Agod. : 12,

Where:

• Agod is the annual amount of depreciation,
• Ames – monthly depreciation amount,
• OS – residual value of the fixed asset at the beginning of the reporting year;
• Na is the depreciation rate;
• Spi – useful life of a fixed asset;
• Kusk is the acceleration coefficient.

Below is a graphical representation of the dynamics of the annual amount of depreciation, residual value and depreciation fund (accumulated depreciation) in the case of depreciation of fixed assets using the reducing balance method.

Fig.2. Schedules for the reducing balance method: (1) annual depreciation; (2) residual value; (3) sinking fund

Example 2.

JSC TD Karton purchased an electric forklift. Its initial cost was 300,000 rubles. Useful life – 5 years. In accordance with the accounting policy of JSC TD Karton, for accounting purposes, this group of fixed assets is depreciated using the reducing balance method.

Solution.

Calculation of depreciation rate:

1. Depreciation rate (Na): 20% (100%: 5 years).

The calculation of annual (Agod) and monthly (Ames) depreciation amounts is presented in the table below.

As can be seen from the calculation table, part of the cost of the fixed asset (98,304 rubles or 32.77%) after the expiration of its useful life remained under-depreciated. RUB 201,696 was transferred to expenses. or 67.23%. But clause 22 of PBU 6/01 stipulates that depreciation should be accrued until the cost of the fixed asset is fully repaid (or written off from accounting), and the regulatory documents do not say what to do with the under-depreciated value of the property.

In this situation, one should be guided by the norm of paragraph 7 of PBU 1/2008, which states: if on a specific issue the regulations do not establish methods of accounting, then the organization itself develops appropriate methods when forming accounting policies, based on PBU 1/2008, other provisions in accounting, as well as IFRS.

Consequently, when using the reducing balance method for calculating depreciation, the organization determines the procedure for writing off the outstanding value of a fixed asset after the end of its useful life and establishes it in its accounting policy. There may be several options for example here. To demonstrate their implementation in practice, we will use the data from Example 2.

Option 1. In the last month of the useful life of a fixed asset, depreciation is charged in an amount equal to the residual value of the object as of this date. In our case, depreciation for the last 5th year of the useful life of a fixed asset item - an electric forklift - will be accrued in the following amounts:

1. monthly for 11 months: • Calculation : 24,576 rub. : 12 months = 2,048 rub.

2. in the last month: • Calculation : 2,048 rub. + 98,304 rub. = 100,352 rub.

Option 2. The residual value of the fixed asset at the beginning of the last year of its useful life is written off evenly over 12 months. In our case, the amount of monthly depreciation charges for the last 5th year of the useful life of a fixed asset item - an electric forklift - will be:

• RUB 122,880 : 12 months = 10,240 rub.

End of example

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

When calculating depreciation based on the sum of the numbers of years of the useful life, the annual amount of depreciation charges is calculated based on the initial (replacement - in case of revaluation) cost and the ratio of the number of years until the end of the useful life (in the numerator) and the sum of the numbers of years of the useful life (in the denominator ).

The procedure for calculating depreciation charges:

1. Agod = Ps x (CHLSpi / SCHLSpi),
2. Ames = Agod: 12,

Where:

• Agod – annual amount of depreciation;
• Ames – monthly depreciation amount;
• Ps – initial (replacement) cost of the fixed asset;
• CHLSpi – number of years of useful life;
• SCHLSpi is the sum of the numbers of years of useful life.

The graph clearly shows the dynamics of the annual amount of depreciation, residual value and depreciation fund (accumulated depreciation) when writing off the cost of a fixed asset by the sum of the numbers of years of its useful life.

Fig.3. Graphs for the method of writing off value by the sum of the numbers of years of useful life: (1) annual depreciation; (2) residual value; (3) sinking fund

Example 3.

StroyDor LLC purchased a rooter. The initial cost of the car was 600,000 rubles. The manager's decision established a useful life of 5 years. The accounting policy of the organization for accounting purposes establishes that the cost of fixed assets of this group is written off using the method based on the sum of the numbers of years of useful life.

Solution.

1. The sum of the numbers of years of useful life (SSLsp) is equal to 15 (= 1+2+3+4+5).

The calculation of depreciation charges (annual and monthly amounts) is presented in the table below.

End of example

Method of writing off cost in proportion to the volume of products produced

The write-off method in proportion to the volume of products (works) is used quite rarely and mainly in cases where the acquired fixed asset is designed to perform a certain, limited amount of work over the entire useful life of the object.

This method is based not on the useful life, but on the volume of products (work) that is expected to be produced (performed) through the use of a fixed asset.

The amount of depreciation is calculated monthly as the product of the actual volume of output (work performed) in the reporting period (given month) in natural values ​​and the ratio of the initial cost of the fixed asset and the estimated volume of output (work performed) for the entire period of use of the facility.

The procedure for calculating depreciation charges:

1. Ames = OVf x (Ps / OVp),

Where:

• Ames – monthly depreciation amount;
• Ps is the initial cost of the fixed asset;
• OVf – actual volume of production (work) in the reporting month;
• ORP – the estimated volume of production (work) for the entire period of use of the fixed asset.

Example 4.

purchased a machine for the production of hardware for 600,000 rubles. The passport for this machine states that it is designed to produce 300,000 parts. In accordance with the Company's accounting policy, for accounting purposes, depreciation on this equipment should be accrued in proportion to the volume of production. Using a facility for production beyond the established volume leads to a decrease in the quality of the products and the impossibility of using them for their intended purpose.

The organization began using the machine and released:

• 1st month - 5,000 parts;
• 2nd month - 4,000 parts;
• 3rd month - 6,000 parts;
• 4th month - 5,000 parts;
• 5th month - 3,000 parts;
• etc.

Solution.

The table shows the calculation of depreciation charges for the machine.

The organization will depreciate the machine until its cost is paid off.

End of example

About the Unified Standards of Depreciation Charges

The balance sheet of some organizations may still include fixed assets that were put into operation before 01/01/1998. What is this date associated with?

The fact is that on January 1, 1998, a new accounting regulation “Accounting for fixed assets” PBU 6/97 came into force (approved by Order of the Ministry of Finance of Russia dated September 3, 1997 No. 65n). This document established 4 new methods of calculating depreciation, which should be applied to newly introduced fixed assets (These methods are described above and are currently used in accordance with clause 18 of PBU 6/01).

The same assets that began to be used before the end of 1997 and earlier continue to be depreciated according to the old procedure during the standard (or actual) life of their service according to the Unified standards of depreciation charges for the complete restoration of fixed assets of the national economy (approved by the Resolution of the Council of Ministers of the USSR dated October 22, 1990 No. 1072).

Depreciation of fixed assets

In the process of production use, the fixed assets of an enterprise wear out and transfer their value to finished products. The transferred part of the value, having separated from the original (replacement) cost of fixed assets, makes independent movement along the contour (Fig. 3.4).

Depreciation is the transfer in parts of the cost of fixed assets as they wear out to the products manufactured with their help.

Part of the depreciation amounts can be used to increase existing fixed assets, i.e. serve as a source of accumulation and expansion of reproduction. In addition, depreciation amounts accumulate gradually, and are spent at a time, only after their service life has expired. Therefore, accrued depreciation until the replacement of retired fixed assets is temporarily free and serves as an additional source of expanded reproduction.

With the increase in the volume of fixed assets and the acceleration of technical progress, the role of depreciation as a source of financing for expanded reproduction increases.

Rice. 3.4. Fixed assets in the production process

Since depreciation charges are an important source of financing the reproduction and renewal of fixed assets, it is necessary to correctly determine:

· composition of objects for which depreciation is calculated;

· their useful life;

· methods of calculating depreciation.

The cost of fixed assets is repaid by calculating depreciation.

Depreciation is not charged for the following fixed assets:

· housing facilities (residential buildings, dormitories, apartments, etc.);

· external improvement facilities and other similar objects (forestry and road management, specialized shipping facilities, etc.);

· productive livestock, buffaloes, oxen and deer, perennial plantings that have not reached operational age;

· fixed assets of non-profit organizations;

· land plots and environmental management facilities, since their consumer properties do not change over time.

Depreciation is calculated over the useful life. Useful life is the period during which the use of a fixed asset generates income for the organization.

The useful life of an object is determined by the organization when accepting it for registration based on:

· the expected period of use of this object in accordance with the expected productivity or capacity;

· expected physical wear and tear, depending on the operating mode (number of shifts), natural conditions and the influence of an aggressive environment, the repair system;

· regulatory and other restrictions on the use of this object (for example, rental period).

The useful life of an object is revised in cases of improvement (increase) in the initially adopted standard indicators of the operation of the object as a result of reconstruction or modernization.

The accrual of depreciation is suspended for objects that, by decision of the head of the organization, are under reconstruction and modernization for more than 12 months or are transferred to conservation for a period of more than three months.

According to the Tax Code of the Russian Federation, it is determined that all depreciable property is combined into ten depreciation groups (see Fig. 3.1).

Based on these groups, a certain range of terms is established.

Accrual of depreciation of fixed assets begins on the first day of the month following the month the object was accepted for accounting, and continues until the cost of this object is fully repaid or the object is written off from accounting.

The accrual of depreciation stops on the first day of the month following the month in which the cost of the object is fully repaid or the object is written off from the register.

Depreciation charges are reflected in the reporting period to which they relate and are accrued regardless of the organization's performance in the reporting period.

Depreciation for accounting purposes is calculated in one of the following ways:

· linear;

· reducing balance method;

· the method of writing off the cost by the sum of the numbers of years of useful life;

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

Fixed assets worth no more than 10,000 rubles. per unit, as well as purchased books, brochures, etc. publications are allowed to be written off as production costs (sales costs) as they are released into production or operation.

Linear method. With the linear method, the annual amount of depreciation is determined by multiplying the original cost of the fixed asset by the depreciation rate.

For example, if the initial cost of an object is 10,000 rubles, its useful life is 5 years, then the annual depreciation rate is 20% (100%: 5 years). The annual amount of depreciation of the object is: 10,000 x 20%: 100% = 2,000 rubles. If an item of fixed assets has been revalued, then the depreciation rate is applied to its replacement cost.

Reducing balance method. With the reducing balance method, the annual amount of depreciation is determined by multiplying the residual value of the fixed asset at the beginning of the reporting year by the depreciation rate and by the acceleration factor established by the legislation of the Russian Federation. In this case, depreciation is charged at a fixed increased rate based on the residual value of the fixed asset.

For example, for an object with an initial cost of 10,000 rubles. and a useful life of 5 years at a depreciation rate of 40% (twice compared to the rate adopted under the straight-line method), the amount of depreciation is:

- in the first year - 10,000 x 40: 100 = 4,000 rubles.

- in the second year - 6000 x 40: 100 = 2400 rubles.

- in the third year - 3600 x 40: 100 = 1440 rubles.

- in the fourth year - 2160 x 40: 100 = 864 rubles.

- in the fifth year - 1296 x 40: 100 = 518.5 rubles.

After depreciation has been calculated for the last year, the fixed asset retains a residual value that is different from zero. Typically, this residual value corresponds to the price of the possible capitalization of materials remaining after the liquidation and write-off of the fixed asset.

When writing off the cost by the sum of the numbers of years of the useful life, the annual amount of depreciation is determined by multiplying the original cost of the fixed asset by the calculated coefficient, 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 the useful life object.

For example, an object of fixed assets with an initial cost of 10,000 rubles. used for 5 years, the sum of the annual numbers is: 5 + 4 + 3 + 2 + 1 = 15.

The depreciation amount is:

- in the first year - 10,000 x 5/15 = 3333.33 rubles.

- in the second year - 10,000 x 4/15 = 2666.67 rubles.

- in the third year - 10,000 x 3/15 = 2,000 rubles.

- in the fourth year C 10,000 x 2/15 = 1333.33 rubles.

- in the fifth year - 10,000 x 1/15 = 666.67 rubles.

If an item of fixed assets has been revalued, then the calculated coefficient is applied to its replacement cost.

Depreciation is calculated monthly at 1/12 of the annual amount, regardless of the method used.

In organizations with a seasonal nature of production, the annual amount of depreciation on fixed assets is accrued evenly throughout the period of operation of the organization in the reporting year.

When writing off the cost in proportion to the volume of production (work), the amount of accrued depreciation is determined by multiplying the natural indicator of the volume of production (work) in the reporting period by the depreciation rate, calculated as the ratio of the original cost of the fixed asset object and the estimated volume of production (work) for the entire useful life of the object .

For example, a car worth 10,000 rubles. used in the production of 50,000 units. The depreciation rate will be 0.2 rubles. (10000 : 50000) per unit produced.

The depreciation amount is:

— in the first year, 16,000 units of products were produced, depreciation is 3,200 rubles (0.2 x 16,000);

- in the second year - 14,000 units, depreciation - 2,800 rubles. (0.2 x 14000), etc.

In contrast to the four considered methods of calculating depreciation for tax purposes, one of two methods should be used:

· linear;

· nonlinear.

For objects of 8-10 groups, only the linear method is used, for objects of 1-7 groups - at the choice of the taxpayer.

The linear method is a uniform write-off of value, a monthly accrual of the same amounts as a percentage of the original (replacement) cost of the property. The amount of deductions is obtained by dividing the initial cost by the period of use of the object in months.

The non-linear method is similar to the declining balance method and involves calculating depreciation based on the same useful life, residual value of the object and a special factor of 2. With this method, property depreciates faster. The amount of accruals changes all the time and is recalculated monthly.

When the residual value of an object using the non-linear method is 20% of the original, the taxpayer must switch to the linear method: divide the residual value by the remaining useful life and charge depreciation in equal shares.

Which depreciation method to choose?

Fixed assets wear out and are not renewed at the same time. This is a gradual process. But some objects will depreciate faster, some slower - this depends on the depreciation policy of the enterprise, one of the main tasks of which is to select the optimal methods for calculating depreciation for both accounting and tax accounting purposes. In this case, what should be guided in solving the problem?

For example, in Western countries, when choosing one or another method of calculating depreciation, organizations are guided by the principle of matching income and costs. The point is this.

If, as a result of using an item of fixed assets throughout the SPI, the company receives uniform income, then preference is given to the linear method.

If the income from the operation of property is greater at the beginning of its useful life, and closer to its end, repair costs increase, then it is better to use accelerated depreciation methods (the reducing balance method, the method of writing off the cost by the sum of the numbers of years of the useful life). When calculating depreciation using these methods, most of the cost of fixed assets is transferred to the cost of products (works, services) in the first years of their operation.

When an organization's income depends on the actual output of products, it is more advisable to choose a method of writing off the cost in proportion to the volume of products produced. This method is the most accurate in terms of matching income and expenses. If the volume of output increases, then the organization's expenses for depreciation of property increase. When production volumes fall, depreciation amounts decrease accordingly. When equipment is idle, depreciation does not need to be charged at all. A significant disadvantage of this method is its labor intensity.

Russian practice shows that most domestic organizations in their choice are aimed at bringing accounting and tax accounting closer together, therefore, usually all fixed assets are depreciated using the straight-line method.

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

Depreciation after modernization

We will find the answer in the letter of the Ministry of Finance dated July 13, 2021 No. 03-03-06/1/60600.
Modernization (completion, additional equipment, reconstruction, technical re-equipment) changes the initial cost of the OS (Clause 2 of Article 257 of the Tax Code of the Russian Federation).

The OS, which is completely depreciated, is no exception.

In the case of modernization of an operating system, including a fully depreciated one, its initial cost in tax accounting increases.

Well, then there may be two options.

First. The useful life of the OS, which is fully depreciated, was not extended after modernization.

In this case, the cost of modernization will be amortized according to the standards that were determined when the OS was put into operation.

As a consequence, after the expiration of the useful life of the asset in tax accounting, it will be depreciated until the cost is completely written off.

Thus, after modernizing a fully depreciated OS, in the opinion of the Ministry of Finance, expressed in the above letter, the company should:

• add the amount of modernization costs to the initial cost of the OS;
• use the depreciation rates that were initially determined when the fixed asset was put into operation.

Read in the berator “Practical Encyclopedia of an Accountant”

An example of calculating the amount of depreciation of a fully depreciated fixed asset after its modernization without changing the depreciation rate

In practice, there is another option.

This is the case when the useful life of the OS after upgrading increases.

In this case, you need to remember the rule. It is possible to increase the useful life of an asset only within the period established for the depreciation group in which it was included (clause 1 of Article 258 of the Tax Code of the Russian Federation).

For example, OS belongs to depreciation group III. Useful life - over 3 years to 5 years (inclusive). According to the operating system, the useful life was set at 40 months.

After modernization, the useful life can be increased to the maximum for this depreciation group. That is, up to 60 months. Depreciation should be calculated based on the new useful life of the asset. This is stated in the letter of the Ministry of Finance dated August 4, 2016 No. 03-03-06/1/45862.

Read in the berator “Practical Encyclopedia of an Accountant”

An example of calculating the amount of depreciation of an asset after its modernization with a change in useful life