Before considering what depreciation of fixed assets is, it is worth taking a short historical excursion. Some accounting elements reminiscent of depreciation are already found in Venetian and Florentine ledgers of the 15th–16th centuries. It is believed that it was there and then that the origins of this economic concept were formed. However, for a long time these accounting elements were not systematic.
Depreciation first became a regular part of accounting in England in the 19th century. This was facilitated by the rapid growth of the railway industry. Construction required significant investments, for which third-party investors – shareholders – were involved. At that time, all expenses were written off as they were incurred. Because of this, incredible costs were recorded at the very beginning of construction, and equally impressive profits were recorded at the completion stage.
Naturally, passive shareholders began to claim dividends from this profit. Active shareholders, real owners, tried to spend part of the income on renovation - updating deteriorating property. This is what gave rise to such two closely related concepts as “wear” and “depreciation” as system ones.
Depreciation and depreciation were and are treated as a unified system. The classic representation of wear and tear as a fund provided for its division into two parts - renovation and depreciation. The first was created as a reserve for replacing old property. The second accumulated funds intended for major repairs. It was precisely this that was understood at one time as depreciation.
As development progressed, various interpretations of wear were substantiated. Concept by P. Samuelson, S.L. Brew and K.R. McConnell defined the essence of depreciation in the monetary assessment of the decrease in the value of consumed capital. J. Bonbright's concept represented depreciation as reserved operating expenses intended to reduce/eliminate physical depreciation of fixed assets.
The concept of V.Ya. Gorfinkel provided for the understanding of depreciation as cost compensation for depreciation of fixed assets, carried out by including part of their cost in the form of an item of production costs, ensuring complete replacement of property upon disposal.
These concepts formed the basis for the methods of price and material calculation of depreciation of fixed assets. On the basis of these methods, the system of unified centralized standards for the depreciation of property objects, the standards for depreciation charges, which still exists today, arose.
However, it is worth understanding that a wear concept that ideally meets all requirements is still missing. This is due to the fact that the concepts of “wear and tear” and “depreciation” are most often assigned identity. In fact, their meaning is very different and there are two reasons for this.
The first is that the accrual of accounting depreciation almost never coincides with the actual physical and moral depreciation of fixed assets. The temporal component of accounting is subject to artificial periodicity, while the same component of the natural accumulation of wear and tear is determined by nonlinear factors.
Obsolescence, however, is even more separate, since it is practically impossible to take into account in advance the prospect of changing the model range in the accounting registers.
The second is that the acceleration and deceleration coefficients of depreciation used in accounting schemes do not affect the actual accumulation of physical depreciation, and the stopped depreciation of non-functioning objects does not stop their wear and tear.
So, the following definition can be considered most consistent with the actual content of the term:
Depreciation is a systematic process of gradually transferring the cost of means of labor, as they wear out, to the cost of manufactured products (works, services) to accumulate funds that will be used to fully or partially compensate for these means of labor in the future. In other words, this is the cost of the organization's fixed assets in distributed monetary form, for re-investment in fixed production assets.
The effectiveness of using accumulated funds to renew property capital depends on the correct solution of several methodological problems:
The solution to these problems is, in fact, an expression of the depreciation policy of the enterprise. After all, the only source of data on the physical and moral condition of fixed assets is depreciation, despite its aphorism regarding real wear and tear.
The theoretical and methodological basis of the concept of the organization’s depreciation policy are:
Depreciation charges are a tool not only for creating reliable reporting on property, costs and financial results of an organization, but also for organizing accounting, as well as a measure of the effectiveness of management activities.
Accordingly, the principle of rationality is that accounting costs should be significantly lower than the economic effect of accounting information. In addition, it is assumed that the procedure for calculating depreciation in accounting should be as close as possible to the procedure for calculating it in tax accounting.
Accounting for accounting transactions for accrual and write-off of depreciation is carried out on a synthetic passive account 02 “Depreciation of fixed assets”. In the credit account 02 reflect the accrued depreciation on received and operating fixed assets. The debit of account 02 reflects depreciation on retired fixed assets. An approximate list of transactions on account 02 can be presented as follows:
1) Postings for assigning accrued depreciation to cost items:
2) To calculate depreciation for objects leased on a return basis, accounting entries Dt 91 - Kt 02 are drawn up.
3) Accounting entries for disposal of fixed assets (in all cases):
The monthly contribution amount is always 1/12 of the annual rate.
In accordance with PBU, depreciation is temporarily not accrued in the following three cases:
Depreciation is not charged for the following accounting items of fixed assets:
Depreciation can be calculated only in those ways that are allowed for use. The Russian Federation provides for the following methods for calculating depreciation of fixed assets:
Main advantage linear method- its simplicity. The annual amount of depreciation is established based on the original cost of the object and the depreciation rate calculated according to its useful life. When calculating depreciation using this method, use the formula:
A = na * OSp(b) : 100
Where:
OSp(b) – initial cost of fixed assets, rub.
The linear accrual method is suitable for those objects that, throughout the entire period of their operation, are involved in the same type and uniform amount of work. In reality, this is very rare, and the functioning of the equipment towards the end of its service life is characterized by a decrease in quality.
The solution to this problem is the accelerated depreciation mechanism. Accelerated depreciation is a method of transferring value to cost items more quickly. Its use allows us to speed up the implementation of new, more efficient facilities. In accounting, accelerated depreciation is applicable only if depreciation is calculated by reducing the balance.
Method for reducing balance involves calculating the annual amount of deductions based on the residual value at the beginning of the year, depreciation rate and acceleration factor. This coefficient cannot take a value greater than 3. When calculating depreciation using this method, use the formula:
Ag = (OCo – Ag – 1) * na * K
Where:
Аg – annual amount of deductions in (g) year, rub.;
OCO – residual value of the fixed asset item at the beginning of the reporting year, rub.;
Аg – 1 – amount of deductions in (g –1) year, rub.;
na – annual depreciation rate, %;
K – acceleration coefficient.
According to the organization's PBU, in order to calculate depreciation by reducing the balance, it is necessary to determine the size of the acceleration coefficient and reflect it in the order on accounting policies.
Let's look at an example of calculating the amount of depreciation using this method.
The company purchased a diesel generator worth RUB 67,300. S.P.I. was determined to be 4 years. The accounting policy establishes:
100%: 4 years = 25% calculated annual rate.
25% * 1.5 = 37.5% norm taking into account the acceleration coefficient.
67,300 * 37.5% = 25,237.5 rub. 1st year depreciation amount
25,237.5: 12 months. = 2,103.125 rub. monthly in 1st year
67,300 - 25,237.5 = 42,062.5 rubles. residual capital at the end of the 1st year
42,062.5 * 37.5% = 15,773.44 rubles. depreciation amount 2nd year
15,773.44: 12 = 1,314.45 rubles. monthly in 2nd year
42,062.5 - 15,773.44 = 26,289.06 rubles. residual capital at the end of the 2nd year
26,289.06 * 37.5% = 9,858.4 rubles. 3rd year depreciation amount
9,858.4: 12 = 821.53 rub. monthly in the 3rd year
26,289.06 - 9,858.4 = 16,430.66 rubles. residual capital at the end of the 3rd year
16,430.66: 12 = 1,369.22 rubles. monthly write-off in the last, 4th year
Cumulative method, aka method of writing off cost by the sum of numbers of years of service life (S.P.I.), is that the annual amount of deductions is calculated according to the original cost and the ratio, the numerator of which is the number of years until the end of S.P.I. object, and the denominator is the sum of numbers by year. When calculating depreciation using this method, use the formula:
A = OSp(b) * (Ti: Tch)
Where:
A – annual amount of depreciation charges, rub.;
OSp(b) – initial cost of fixed assets, rub.;
Ti – number of years remaining until the end of the operational life;
Tch – the sum of the numbers of years of operational life.
The essence of the method is in the following example. The company purchased a machine worth 50,000 rubles. SPI of the machine – 5 years. Let's determine the sum of the numbers of years of SPI of the machine: 1+2+3+4+5=15 (cumulative number). For each year of operation, the following calculation of depreciation of fixed assets will be made:
1 year 50,000 * 5/15 = 16,667 rubles;
2 year 50,000 * 4/15 = 13,333 rubles;
3 year 50,000 * 3/15 = 10,000 rubles;
4 year 50,000 * 2/15 = 6,667 rubles;
5 year 50,000 * 1/15 = 3,333 rub.
Productive, aka the way write-off of cost in proportion to production volume (works) is based on the physical indicator of the volume of production in the reporting period and the ratio of the initial cost and planned production output for the entire S.P.I. object. When calculating depreciation using this method, use the formula:
A = Qi * (OSP: Qn)
Where:
A – annual amount of depreciation charges, rub.;
Qi – volume of products (work) in the reporting year, rub.;
OSp – initial cost at the beginning of the reporting year, rub.;
Qn – estimated volume of products (work) for the entire SPI of a fixed asset object, rub.
An example of calculations using this method.
The company purchased equipment worth 125,000 rubles. with a service life of 6 years. The planned production output by year looks like this:
first year = 1680,
second year = 1400;
third year = 1260;
fourth year = 980;
fifth year = 880;
sixth year = 800;
only 7000 units.
The calculation results in this example are easiest to present in the form of a table:
| Year | Product volume, units | Depreciation charges per unit of production, rub. | Annual amount of depreciation charges, rub. | Depreciated part, % |
|
1 2 3 4 5 6 Total |
1680 1400 1260 980 880 800 7000 |
17,86 17,86 17,86 17,86 17,86 17,86 |
30 005 25 004 22 504 17 503 15 717 14 267 125 000 |
24,0 20,0 18,0 14,0 12,6 11,4 100 |
The productive method itself most accurately reflects reality. Its use provides the most accurate reflection of product costs. The more intensively the equipment is used, the greater the amount of accrued depreciation. By the time the physical wear and tear of an object reaches one hundred percent, the total depreciation charges on it will also be equal to one hundred percent of the original cost of the object. At the same time, like other methods, productive cannot take into account the obsolescence of equipment.
A significant obstacle to its widespread use is the sharp increase in the complexity of accounting work. The presented methods of calculating depreciation are used for accounting purposes.
However, depreciation is also accrued for tax purposes, and tax legislation provides for slightly different ways of accounting for depreciation.
The Tax Code of the Russian Federation assumes that depreciation for tax purposes is calculated using either a linear or non-linear method. In this case, the method chosen by the enterprise is applied to all property of the organization.
At linear method the amount of depreciation accrued per month is calculated as the product of the original cost and the depreciation rate established for this object. The depreciation rate for each object is calculated using the formula:
An= * 100%
Where:
An – depreciation rate, %;
s – S.P.I. property object, months
The linear method is mandatory for buildings, structures and transmission devices included in depreciation groups 8-10, regardless of which method is adopted in the organization. Thus, since in addition to these categories of fixed assets, these groups include machine tools, transport and other equipment, then for them the organization must apply the method (linear or non-linear) that is approved by the order on the accounting policy of the enterprise.
Unlike linear, calculated by traditional application to each object, nonlinear method assumes that the calculation is carried out as a whole for the depreciation group. This means that for each group the total balance is calculated on the first day of the month for which depreciation is calculated.
The total balance is a unit of the formula and is recalculated monthly by decreasing the amount of depreciation accrued in the previous month. It should be remembered that there is an exception for property of 8–10 groups; therefore, when calculating the total balance for these groups, the subgroups “Buildings”, “Structures” and “Transmission devices” included in them should be excluded from the calculation.
Ag= Bg* N/100
Where:
Ag – depreciation by group for the month, rub.;
Bg – total balance for the group on the 1st day of the month, rub.;
N – depreciation rate for the group (subgroup).
The monthly depreciation rates established by the Tax Code are presented in the table:
| Group | Depreciation rate |
| 1 | 14,3 |
| 2 | 8,8 |
| 3 | 5,6 |
| 4 | 3,8 |
| 5 | 2,7 |
| 6 | 1,8 |
| 7 | 1,3 |
| 8* | 1,0 |
| 9* | 0,8 |
| 10* | 0,7 |
* minus the cost of property belonging to the subgroups “Buildings”, “Structures” and “Transmission devices”
From the month before which the total cost of the group’s objects becomes less than 20,000 rubles, the organization has the right to liquidate this group (the corresponding subgroup in the case of 8-10 groups) by assigning the amount of the total balance to the item of non-operating expenses in the current accounting period.
In the case of operation of fixed assets in particularly difficult conditions and/or with increased shifts, the organization has the right to use an increase factor to the depreciation rate. This coefficient cannot be more than 2. It is important to remember that from the beginning of 2014 it is prohibited to apply increasing coefficients for several reasons; in addition, the use of these coefficients is possible only in relation to property accepted on the balance sheet before 01/01/2014.
For a number of objects listed in paragraph 2 of Article 259.3, the organization has the right to apply an adjustment coefficient with a value not exceeding 3. However, the application of these coefficients to property of 1, 2 and 3 depreciation groups is prohibited if depreciation for them is calculated using a non-linear method.
The legislation also provides for the possibility of an organization applying norms whose value is lower than those established by the Tax Code. This is determined for each specific fixed asset object, taking into account the characteristics of the economic process. Those objects for which increasing or decreasing factors are applied must be separated into subgroups as part of their depreciation groups. The procedure for applying the coefficients is fixed in the order on the accounting policy of the organization for tax purposes.
The beginning of 2014 can be called significant. This is due to the fact that this year is the first time that organizations that have decided to switch from a non-linear to a linear method can make this transition. The Tax Code sets a limit for such a transition - once every five years. Consequently, organizations that chose a non-linear method in 2009 can change it to linear only from 01/01/2014.
For the transition “in the opposite direction”, such restrictions are not established and organizations have the right to switch from the linear method to the non-linear one in the manner established for amending the order on accounting policies.
Finally, the controversial interpretation of legislative norms related to the moment when depreciation begins to be calculated for those objects, the ownership of which requires state registration, is also being eliminated.
The code provides an unambiguous interpretation - this moment in relation to an object is recognized as the moment of its commissioning, regardless of the date of its state registration. In addition, in relation to companies that began to apply this rule in January 2013 in relation to property put into operation before December 1, 2012, a legislative decision was made on “tax forgiveness” (Article 3.1 of the Federal Law of November 29, 2012 N 206-FZ ( ed. dated July 23, 2013).
PRACTICAL LESSON No. 1.
Calculation of depreciation charges.
The student must:
know:
depreciation of fixed assets.
be able to:
calculate depreciation charges.
Guidelines
Depreciation fixed assets (fixed assets) is the gradual transfer of the value of fixed assets during their operation to the cost of manufactured products. Economically, depreciation compensates for the wear and tear of fixed assets and ensures their safety in monetary terms. In other words, depreciation - monetary expression of depreciation of fixed assets in the process of their productive functioning.
The sum of the cost of depreciation of fixed assets over a period of time is called depreciation charges. The amount of annual depreciation depends on the cost of fixed assets and the time of their operation. In practice, it is more convenient to calculate depreciation charges using the depreciation rate.
Depreciation rate, or depreciation rate , is the percentage ratio of the amount of depreciation to the cost of fixed assets (fixed assets).
The most common method of calculating depreciation is the straight-line method, in which depreciation of fixed assets is accrued in equal parts over their entire service life.
With the linear (uniform) method of calculating depreciation, the annual depreciation rate for complete restoration (renovation) is determined by the formula:
Because , That 
Where N A - annual depreciation rate, %;
P With- initial cost of the fixed assets object, rub.;
L With- - liquidation value of fixed assets, rub.;
D eat- cost of dismantling liquidated fixed assets and other costs associated with liquidation, rub.;
T A- depreciation period (service life of the object), years.
The monthly depreciation rate is equal to 1/12 of the annual depreciation rate.
Depreciation charges for fixed assets begin from the first month following the month the object was accepted for accounting, and are carried out until the cost of the object is fully repaid or it is written off from accounting in connection with the termination of ownership or other property rights.
Annual depreciation charges are calculated in one of the following ways:
- "in a linear way"
, based on the original cost of fixed assets and the depreciation rate according to the formula: 
If the liquidation value of fixed assets and the cost of dismantling liquidated fixed assets and other costs associated with liquidation are not specified or unknown, then the depreciation rate for complete restoration (renovation) with the linear method of calculating depreciation charges is determined by the formula:
For example: An object worth 620 thousand rubles was purchased. with a useful life of 5 years.
2) Annual amount of depreciation:
- "reducing balance method" , based on the residual value of fixed assets and the depreciation rate according to the formula:
ABOUT With- residual value of fixed assets ( OS = P With – Wear), rub.,
Wear– the amount of previously accrued depreciation (depreciation), rub.
Then 
The depreciation rate using the reducing balance method is determined by the formula: 
For example:
An item of fixed assets worth 500 thousand rubles was purchased. with a useful life of 5 years. Acceleration factor - 2.
1) Annual depreciation rate:
2) Annual amount of depreciation: 1st year - 
5th year - remaining amount
-
“the method of writing off the cost by the sum of the number of years of useful life”
, based on the original cost of fixed assets and depreciation rates. 
The depreciation rate is calculated as an annual ratio, where the numerator is the number of years remaining until the end of the asset’s service life ( T a.ost), the denominator is the sum of the numbers of years of service life of the object ( Σп) according to the formula:
For example:
An item of fixed assets worth 1,500 thousand rubles was purchased. Useful life - 5 years.
1) Sum of numbers of years of service life:
2) 1st year- Annual depreciation rate: 
2nd year
Amount of annual depreciation charges: 
3rd year– Annual depreciation rate: 
Amount of annual depreciation charges: 
4th year- Annual depreciation rate: 
Amount of annual depreciation charges: 
5th year- Annual depreciation rate: 
Amount of annual depreciation charges: 
- “by writing off the cost in proportion to the volume of products (work)” , based on the initial cost of fixed assets, the volume of output in physical terms in the reporting period and the depreciation rate per unit of production (volume of work) for the entire useful life of fixed assets.
The depreciation rate per 1 unit of the expected volume of production (work) for the entire useful life of fixed assets is determined by the formula:
,
and the amount of annual depreciation charges in the current year: 
For example:
A car with a carrying capacity of more than 2 tons with an estimated mileage of 400 thousand km was purchased at a cost of 1800 thousand rubles. In the reporting period, the mileage is 5 thousand km. Solution
Depreciation rate per unit of production:
%
Amount of depreciation charges for the reporting period:
For a group of homogeneous fixed assets, the selected method is applied throughout the entire useful life. During the reporting year, depreciation charges are accrued monthly, regardless of the calculation method used, in the amount of "/12 of the annual amount.
§ linear method;
§ reducing balance method;
§ method of writing off value based on the sum of the numbers of years of useful use;
§ method of writing off the cost in proportion to the volume of products (works).
In this case, the annual amount of depreciation charges is determined (clause 19 of PBU 6/01):
“with the linear method - 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;
with the reducing balance method - based on the residual value of the fixed asset item at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this item and a coefficient not higher than 3, established by the organization;
when writing off the cost by the sum of the numbers of years of the useful life - based on the original cost or (current (replacement) cost (in case of revaluation) of an object of fixed assets and the ratio, the numerator of which is the number of years remaining until the end of the useful life of the object, and the denominator is the sum of the numbers of years of the useful life of the object.
When writing off the cost in proportion to the volume of production (work), depreciation charges are calculated based on the natural indicator of the volume of production (work) in the reporting period and the ratio of the original cost of the fixed asset object and the estimated volume of production (work) for the entire fixed asset object.”
The use of one of the methods of calculating depreciation for a group of homogeneous fixed assets is carried out throughout the entire useful life of the objects included in this group.
With the linear 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.
The useful life of objects is determined by the organization independently when accepting the object for accounting.
The useful life of a fixed asset item is determined based on:
The expected useful life of this facility 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).
In cases of improvement (increase) in the initially adopted standard indicators of the functioning of a fixed asset object as a result of reconstruction or modernization, the organization revises the useful life of this object.
Until January 1, 2002, when determining the useful life of fixed assets, organizations were guided by Resolution of the Council of Ministers of the USSR dated October 22, 1990 No. 1072 “On uniform standards of depreciation charges for the complete restoration of fixed assets of the national economy of the USSR.”
Based on Letter of the Ministry of Finance of the Russian Federation dated August 29, 2002 No. 04-05-06/34, when applying this resolution for accounting purposes, organizations use the specified Classification to determine the useful life of fixed assets accepted for accounting (debit of account 01 “Fixed funds"), starting January 1, 2002.
Depreciation on fixed assets that were accepted for accounting before January 1, 2002 for accounting purposes continues to be accrued based on the useful life determined when the object was registered and the depreciation calculation method chosen by the organization for a group of homogeneous objects.
Example 1.
The cost of the fixed asset is 260,000 rubles. In accordance with the classification of fixed assets included in, approved by Resolution No. 1, the object is classified in the third depreciation group with a useful life of over 3 years to 5 years inclusive. The useful life is set at 5 years. The annual depreciation rate is 20% (100% / 5 years), the annual depreciation amount is 52,000 rubles (260,000 x 20 / 100), the monthly depreciation amount is 4,333.33 rubles (52,000 / 12).
The reducing balance method for determining the useful life is established in the case when the efficiency of using an item of fixed assets decreases with each subsequent year.
The annual amount of depreciation is determined based on the residual value of the fixed asset item at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this item and a coefficient not higher than 3 established by the organization (clause 19 of PBU 6/01).
According to the new rules of paragraph 19 of PBU 6/01, introduced by Order of the Ministry of Finance of the Russian Federation No. 147n, when using the reducing balance method to calculate depreciation, an organization can apply a coefficient of no higher than 3.
The coefficient is set by the organization independently and its value must be reflected in the accounting policies of the organization. Previously, PBU 6/01 did not provide for this possibility. But paragraph 54 of Methodological Instructions No. 91n indicated that in accordance with the legislation of the Russian Federation, small businesses can apply an acceleration factor of 2; and for movable property constituting the object of financial leasing and attributed to the active part of fixed assets, an acceleration factor may be applied in accordance with the terms of the financial lease agreement not higher than 3. In practice, organizations could not apply this provision, since neither the Federal Law of October 29, 1998 No. 164-FZ “On financial rent (leasing)”, nor Federal Law of June 14, 1995 No. 88-FZ “On state support of small businesses in the Russian Federation” has not established such a coefficient.
Example 2.
The cost of the fixed asset is 260,000 rubles. Useful life is 5 years. Acceleration factor 2. Annual depreciation rate 20%. The annual depreciation rate taking into account the acceleration factor is 40%.
In the first year of operation:
The annual amount of depreciation charges will be determined based on the initial cost formed when the fixed asset item was accepted for accounting, and will amount to 104,000 rubles (260,000 x 40% = 104,000).
In the second year of operation:
Depreciation will be determined based on the residual value of the object at the end of the first year of operation and will be 62,400 rubles ((260,000 - 104,000) = 156,000 x 40%).
In the third year of operation:
Depreciation will be determined based on the residual value of the object at the end of the second year of operation and will be 37,440 rubles ((156,000 - 62,400) = 93,600 x 40%).
In the fourth year of operation:
Depreciation will be determined based on the residual value of the object at the end of the third year of operation and will be 22,464 rubles ((93,600 - 37,440) = 56,160 x 40%).
During the fifth year of operation:
Depreciation will be determined based on the residual value of the object at the end of the fourth year of operation and will be 13,478.40 rubles ((56,160 - 22,464) = 33,696 x 40%).
The accumulated depreciation over five years will be 239,782.40 rubles. The difference between the original cost of the object and the amount of accrued depreciation in the amount of 20,217.60 rubles represents the liquidation value of the object, which is not taken into account when calculating depreciation for years other than the last year of operation. In the last year of operation, depreciation is calculated by subtracting the salvage value from the residual value of the object at the beginning of the last year.
With this method, the annual depreciation rate 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 useful life of the object.
Example 3.
The cost of the fixed asset is 260,000 rubles. Useful life is 5 years. The sum of the numbers of useful years will be 1 + 2 + 3 + 4 + 5 = 15.
In the first year of operation, the ratio will be 5/15, the amount of accrued depreciation will be 86,666.67 rubles (260,000 x 5/15).
In the second year of operation, the ratio is 4/15, the amount of accrued depreciation is 69,333.33 rubles (260,000 x 4/15).
In the third year of operation, the ratio is 3/15, the amount of accrued depreciation is 52,000 rubles (260,000 x 3/15).
In the fourth year of operation, the ratio is 2/15, the amount of accrued depreciation is 34,666.67 rubles (260,000 x 2/15).
In the last, fifth year of operation, the ratio is 1/15, the amount of accrued depreciation is 17,333.33 rubles (260,000 x 1/15).
When writing off the cost of a fixed asset in proportion to the volume of products (work, services), depreciation charges are 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 item and the estimated volume of products (work) for the entire useful life of the object fixed assets.
Example 4.
The cost of the car is 65,000 rubles, the estimated mileage of the car is 400,000 km. In the reporting period, the car's mileage was 8,000 km, the amount of depreciation for this period will be 1,300 rubles (8,000 km x (65,000 rubles: 400,000 km)). The amount of depreciation for the entire mileage period is 65,000 rubles (400,000 km x 65,000 rubles: 400,000 km).
End of the example.
Having analyzed various methods of calculating depreciation, we can conclude that when using the reducing balance methods and writing off the cost by the sum of the numbers of years of the useful life, the amount of depreciation charges decreases over the years. When choosing one of these methods for calculating depreciation, accountants must remember that the accrued amount of depreciation affects products, work performed, and services provided.
In organizations with a seasonal nature of production, the annual amount of depreciation charges on fixed assets is accrued evenly throughout the period of operation of the organization in the reporting year.
The monthly depreciation rate in all cases will be 1/12 of the annual depreciation rate.
You can find out more about the issues related to the procedure for assessing fixed assets, the route of receipt, types of repairs and methods of disposal of fixed assets in the book of JSC “BKR-Intercom-Audit” “Fixed Assets”.
Depreciation of fixed assets is when property transfers its value to expenses gradually. In this case, the property must meet the criteria of a fixed asset: cost and useful life. We will tell you in the article how to calculate depreciation of fixed assets in 2019 in accounting and tax accounting.
What is the difference between depreciable property for accounting and tax purposes >>>
The cost of property that has been in use for more than a year is written off as expenses in parts. Depreciation deductions allow you to stabilize monthly expenses and reduce the likelihood of situations where significant capital investments automatically lead to losses.
That is, what is depreciation of fixed assets in simple words? This is taking into account part of the cost of the object in the expenses of the current month.
After the facility is put into operation, the company begins to write off depreciation.
Companies that seek to bring together data in accounting and taxation choose the linear method of calculating depreciation of fixed assets. With this option, depreciation of fixed assets is charged evenly over their useful life. However, the linear method does not save on taxes. Therefore, accountants who are also involved in tax planning use non-linear methods for calculating depreciation of fixed assets.
You will find calculation formulas for each method in the next section.
Let's look at each method of depreciation of fixed assets separately, algorithm and examples.
In accounting, the following types of depreciation are distinguished:
Fix the chosen method in the accounting policy (clause 7 of PBU 1/2008). Let's consider all the methods in detail.
It will help to correctly set depreciation in accounting
To calculate using the reducing balance method, you need to know residual value at the beginning of the year andits useful life.
First, determine the annual depreciation rate. To do this, use the formula:
Then calculate the annual depreciation amount. To do this, use the formula:
The amount that must be accrued monthly is 1/12 of the annual amount (clause 19 of PBU 6/01). Since the residual value is taken at the beginning of each accounting year, the annual depreciation amount will gradually decrease. In this case, the monthly amount will remain unchanged for each year.
If an organization uses the reducing balance method, then it can use an increasing coefficient to the depreciation rate, but not more than 3.0 (clause 19 of PBU 6/01). The specific value of this coefficient must be fixed in the accounting policy (clause 7 of PBU 1/2008).
A small company has the right to charge depreciation of production and business equipment at a time in the amount of 100 percent of the original cost. In this case, the object is not deregistered until its actual disposal or termination of use.
If a small enterprise immediately charges depreciation in full, it will bring accounting closer to tax accounting. Often the cost of inventory does not exceed 100,000 rubles. When calculating income tax, the cost of such inventory is
Previously, only small enterprises could apply the maximum coefficient value (3.0). Restrictions on the use of this coefficient have been lifted since January 1, 2006. This means that all organizations can apply the 3.0 coefficient only for facilities put into operation after December 31, 2005.
For other facilities, it is necessary to apply the increasing coefficients initially established during their commissioning (letter of the Ministry of Finance of Russia dated June 22, 2007 No. 03-05-06-01/71).
Example:
The organization purchased a car. The initial cost formed in accounting is 600,000 rubles. The vehicle was put into operation in December 2014. The useful life of the car is 4 years.
According to the accounting policy, in accounting, depreciation on vehicles is calculated using the reducing balance method using an increasing factor of 2.0. Depreciation on this car has been calculated since 2015. The residual value at the beginning of 2015 is equal to its original value.
The annual depreciation rate is 25% (1: 4 x 100%). The calculation of deductions for the useful period is presented in the table below.
|
Year of operation |
Residual value at the beginning of the year, rub. |
Depreciation rate, % |
Annual amount of depreciation charges taking into account the increasing factor, rub. (column 2 ? column 3 ? 2.0) |
Monthly amount of deductions during the year, rub. |
Residual value at the end of the year, rub. |
|
2015 |
|||||
|
2016 |
|||||
|
2017 |
|||||
|
2018 |
|||||
|
2019 |
To calculate the method of writing off value by the sum of the numbers of years of useful life, you need to know:
Determine the annual depreciation amount immediately. To do this, use the formula:
Monthly contributions are 1/12 of the annual amount. This accrual procedure is established by clause 19 of PBU 6/01.
Example:
The organization purchased a condensate pump. Initial cost – 45,000 rubles. When the pump was put into operation, its useful life was set at 2 years. According to the accounting policy, depreciation on machinery and equipment is calculated by writing off the cost based on the sum of the numbers of years of useful life.
The sum of the numbers of years of useful life of the pump is 3 (1 + 2). In the first year of operation of the pump, the annual depreciation amount will be 30,000 rubles. (2: 3 ? 45,000 rub.). The amount of monthly deductions is 2500 rubles. (RUB 30,000: 12 months).
In the second year of operation of the pump, the annual depreciation amount will be 15,000 rubles. (1: 3 ? 45,000 rub.). The amount of monthly deductions is 1250 rubles. (RUB 15,000: 12 months).
To calculate the method of writing off the cost in proportion to the volume of products (works), you need to know:
When writing off cost using this method, the annual rate and amount of depreciation do not need to be determined. This is explained by the fact that the amount of depreciation depends on the volume of production, which may change during the year. Accordingly, the amount that will be written off as expenses must be determined monthly. Calculate it using the formula ( clause 19 PBU 6/01):
Example:
The organization acquired a forging press, the resource of which allows the production of 100,000 products. The initial cost of the press is 2,000,000 rubles. According to the accounting policy for forging and pressing equipment, the organization charges depreciation in proportion to the volume of products produced.
This year, 10,000 products were produced using the press - in January, 3,000 products - in February. The amount of deductions for the forging press was: in January - 200,000 rubles. (10,000 pcs. x 2,000,000 rubles: 100,000 pcs.), in February - 60,000 rubles. (3000 pcs x 2,000,000 rubles: 100,000 pcs).
In tax accounting, depreciation can be calculated in one of the following ways at the organization’s discretion:
Fix the chosen method in your accounting policy for tax purposes.
Regardless of the method chosen in the accounting policy, the cost of some fixed assets can only be written off linearly. This requirement applies:
For objects that are included in depreciation groups 1-7, the organization has the right to change the chosen method of calculating depreciation from the beginning of the next period and switch from linear to non-linear method (clause 1 of article 259 of the Tax Code of the Russian Federation).
For some objects in tax accounting, accelerated depreciation of fixed assets is charged - with an increasing factor of 2 or 3 (clauses 1, 2 of Article 259.3 of the Tax Code of the Russian Federation). For example, a depreciation acceleration factor of 3 is used for leased property of the fourth to tenth groups. It turns out that accelerated depreciation of fixed assets in 2018 allows the asset to be written off as expenses two or three times faster than usual (clause 13 of Article 258 of the Tax Code of the Russian Federation).
Using the linear method, depreciation is calculated for each object (Clause 2 of Article 259 of the Tax Code of the Russian Federation). The depreciation rate is determined by the formula:
Then calculate the monthly depreciation amount:
Example:
The organization purchased a fixed asset - a laptop at a price of 110,000 rubles. (without VAT). The accountant determined that, in accordance with the Classification approved by Decree of the Government of the Russian Federation of January 1, 2002 No. 1, the laptop belongs to the second group (useful life from two to three years). The organization decided that the costs of this fixed asset will be written off through depreciation over 25 months.
According to the accounting policy, for tax purposes, depreciation on computer equipment is calculated using the straight-line method. Bonus depreciation does not apply.
The organization's accountant calculated the depreciation rate as follows:
1: 25 months ? 100% = 4%.
The monthly depreciation amount was:
110,000 rub. ? 4% = 4400 rub.
A company that calculates depreciation using a non-linear method can write off almost half the cost already in the first years of operation of the facility (Article 259.2 of the Tax Code of the Russian Federation).
Monthly depreciation with this method is calculated not separately for each object, but for the depreciation group as a whole. The composition of depreciation groups for calculating depreciation using the non-linear method is determined by useful life in accordance with the Classification approved by Decree of the Government of the Russian Federation of January 1, 2002 No. 1.
If the procedure for calculating depreciation for property included in the same depreciation group differs, one or more depreciation subgroups should be distinguished within it. For example, this should be done if some of the objects with the same useful life are operated in an aggressive environment and depreciation on them is charged with an increasing coefficient (subclause 1, clause 1, article 259.3 of the Tax Code of the Russian Federation). Or if the organization uses certain objects (except for buildings) exclusively for R&D (clause 13 of Article 258 of the Tax Code of the Russian Federation).
1. Total balance of the depreciation group (subgroup) is defined as the total cost of objects that are included in the same depreciation group (subgroup). This does not take into account the cost of property, for which depreciation can only be calculated using the straight-line method.
Initially, determine the size of the total balance on the 1st day of the tax period from which it was decided to apply the non-linear method, and subsequently on the 1st day of each month.
Features of calculating the total balance
Under certain conditions, the total balance can either increase or decrease. In addition, the total balance is reduced monthly by the amount of accrued depreciation for this group of fixed assets for the previous month.
Determine the total balance on the 1st day of each month using the formula:
| The total balance of the depreciation group (subgroup) as of the 1st day of the month for which depreciation is calculated | = | Total balance of the depreciation group (subgroup) at the beginning of the previous month | + |
Initial price objects, introduced in exploitation in the previous month |
+/- | The amount by which the original cost increased (decreased) | - | The amount of accrued depreciation for the previous month (residual value of the retired fixed asset) |
Example:
The organization purchased five laptops in January. The cost of one laptop is 110,000 rubles. (without VAT). In accordance with the Classification approved by Government Decree No. 1 dated January 1, 2002, the laptop belongs to the second depreciation group (useful life from two to three years).
The accounting policy for tax purposes determines that for fixed assets included in the second depreciation group, depreciation is calculated using a non-linear method.
As of January 1, the organization did not have fixed assets included in the second depreciation group. Therefore, the total balance of this depreciation group on January 1 is zero.
Laptops were put into operation in January. As of February 1, the total balance of the second depreciation group amounted to 550,000 rubles. (RUB 110,000 ? 5 pcs.).
The depreciation rate for the second depreciation group is 8.8 percent.
The amount of accrued depreciation for February amounted to 48,400 rubles. (RUB 550,000 ? 8.8%).
In February, the organization purchased another laptop worth RUB 102,000. (without VAT) and put it into operation in the same month.
The total balance of the second depreciation group as of March 1 is equal to:
550,000 rub. + 102,000 rub. – 48,400 rub. = 603,600 rub.
The amount of accrued depreciation for March was:
603,600 rub. ? 8.8% = 53,117 rub.
2. Depreciation rates, which are used in the nonlinear method, are defined in paragraph 5 of Article 259.2 of the Tax Code of the Russian Federation. For each depreciation group, the rates are fixed and do not depend on the useful life.
Calculate the monthly deduction amount using the formula:
Example:
In January, the organization purchased a fixed asset - a laptop at a price of 102,000 rubles. (without VAT). In the same month, the laptop was put into operation. The accountant determined that, in accordance with the Classification approved by Government Decree No. 1 dated January 1, 2002, the laptop belongs to the second depreciation group (useful life from two to three years). The useful life of the laptop is 36 months. The organization does not have any other fixed assets included in this depreciation group.
According to the accounting policy, for tax purposes, depreciation on computer equipment is calculated using a non-linear method.
The monthly depreciation rate for fixed assets included in the second depreciation group is 8.8 percent (clause 5 of Article 259.2 of the Tax Code).
Every month, the accountant determined the total balance of the depreciation group and the amount of depreciation for this group:
|
Month |
Total balance of the depreciation group at the end of the month |
Amount of accrued depreciation by depreciation group |
|
2018 |
||
|
RUB 93,024 (RUB 102,000 – RUB 8,976) |
8976 rub. (RUB 102,000 ? 8.8%) |
|
|
RUB 84,838 (RUB 93,024 – RUB 8,186) |
8186 rub. (RUB 93,024 ? 8.8%) |
|
|
RUR 77,372 (RUB 84,838 – RUB 7,466) |
7466 rub. (RUB 84,838 ? 8.8%) |
|
|
RUB 70,563 (RUB 77,372 – RUB 6,809) |
6809 rub. (RUB 77,372 ? 8.8%) |
|
|
RUB 64,353 (RUB 70,563 – RUB 6,210) |
6210 rub. (RUB 70,563 ? 8.8%) |
|
|
RUB 58,690 (RUB 64,353 – RUB 5,663) |
5663 rub. (RUB 64,353 ? 8.8%) |
|
|
RUR 53,525 (RUB 58,690 – RUB 5,165) |
5165 rub. (RUB 58,690 ? 8.8%) |
|
|
September |
RUB 48,815 (RUB 53,525 – RUB 4,710) |
4710 rub. (RUB 53,525 ? 8.8%) |
|
RUB 44,519 (RUB 48,815 – RUB 4,296) |
4296 rub. (RUB 48,815 ? 8.8%) |
|
|
RUB 40,601 (RUB 44,519 – RUB 3,918) |
3918 rub. (RUB 44,519 ? 8.8%) |
|
|
RUB 37,028 (RUB 40,601 – RUB 3,573) |
3573 rub. (RUB 40,601 ? 8.8%) |
|
|
2019 |
||
|
RUB 33,770 (RUB 37,028 – RUB 3,258) |
3258 rub. (RUB 37,028 ? 8.8%) |
|
|
RUB 30,798 (RUB 33,770 – RUB 2,972) |
2972 rub. (RUB 33,770 ? 8.8%) |
|
|
RUB 28,088 (RUB 30,798 – RUB 2,710) |
2710 rub. (RUB 30,798 ? 8.8%) |
|
|
RUB 25,616 (RUB 28,088 – RUB 2,472) |
2472 rub. (RUB 28,088 ? 8.8%) |
|
|
RUB 23,362 (RUB 25,616 – RUB 2,254) |
2254 rub. (RUB 25,616 ? 8.8%) |
|
|
RUB 21,306 (RUB 23,362 – RUB 2,056) |
2056 rub. (RUB 23,362 ? 8.8%) |
|
|
RUB 19,431 (RUB 21,306 – RUB 1,875) |
1875 rub. (RUB 21,306 ? 8.8%) |
|
After 18 months of using the laptop, the total balance dropped below 20,000 rubles. The organization did not put into operation any other fixed assets belonging to the second depreciation group.
In August 2019, the accountant included in non-operating expenses the entire amount of the residual value for this depreciation group in the amount of 19,431 rubles.
Let's move on to how depreciation charges are reflected in accounting.
Please note: if in accounting and tax accounting a company depreciates fixed assets using different methods, has set different useful lives, has established or applies increased coefficients, the amounts will differ. In this case, temporary differences will have to be recorded and the corresponding deferred tax assets and liabilities will be recorded.
Companies accrue accounting depreciation of fixed assets from the month following the one in which the property was accepted for accounting as a fixed asset (clause 21 of PBU 6/01). Subsequently, depreciation is accrued monthly, regardless of the organization’s performance (clause, PBU 6/01). There is no need to depreciate property from the month following the one in which it was disposed of or fully paid off its value (clause 22 of PBU 6/01). Sometimes depreciation may be suspended.
The organization may not put the fixed asset into operation immediately. In this case, it is accepted for accounting in a separate subaccount to account 01, which may be called, for example, “Fixed assets in warehouse (in stock).” This procedure applies:
Thus, after reflecting the received property on account 01, the organization must begin to depreciate it. This must be done regardless of whether the facility is put into operation or not.
New clarifications from the Ministry of Finance on the calculation of depreciation are not in favor of companies
For the first time, the Ministry of Finance explained how to calculate depreciation after the transformation of a company, for example from an LLC to a JSC. The conclusions are unfavorable for organizations, but
Depreciation in accounting must be calculated starting from the month following the month in which the property was accepted for accounting as a fixed asset (clause 21 of PBU 6/01). Thus, after reflecting the received property on account 01, the organization must begin to depreciate it. This must be done regardless of whether the organization has started using this object or not.
Reflect the amounts of accrued depreciation on account 02 “Depreciation of fixed assets” in correspondence with expense accounts. Select an account for accounting expenses depending on the reason why the property is not used (production necessity, technological features, planned delay in operation).
Depending on the nature of use of a particular property, depreciation of fixed assets is included part:
We have presented the entries for writing off depreciation of fixed assets, which reflect the accrual of depreciation in accounting, in the table below. They must be done monthly (clause 21 of PBU 6/01).
| Wiring | Decoding |
| DEBIT 20 (23, 25, 44...) CREDIT 02 | depreciation has been accrued for fixed assets that are used in the production of goods (performance of work, provision of services) or in trading activities |
| DEBIT 08 CREDIT 02 | depreciation has been accrued for fixed assets that are used in the creation (modernization, reconstruction) of another non-current asset |
| DEBIT 91-2 CREDIT 02 | depreciation has been accrued for fixed assets that are used in other types of activities (for example, for leased assets, if leasing property is not the main activity of the lessor) or for a non-production facility |
The calculation of depreciation in tax accounting begins on the 1st day of the month following the month in which the property was put into operation (clause 4 of Article 259 of the Tax Code of the Russian Federation). In the same order, calculate depreciation on capital investments in the form of inseparable improvements to fixed assets received under lease agreements or gratuitous use (loans) (clauses 3, 4 of Article 259.1 of the Tax Code of the Russian Federation).
Depreciation accrual stops on the 1st day of the month following the month in which the property (clause 5 of Article 259.1 of the Tax Code of the Russian Federation):
If property is temporarily excluded from depreciable property, then do not accrue depreciation from the 1st day of the month following the month of its exclusion (clause 6 of Article 259.1 of the Tax Code of the Russian Federation).
Housing facilities (residential buildings, dormitories, apartments and others);
Objects of external improvement and other similar objects of forestry, road management, specialized structures for navigation and others;
Productive livestock, buffaloes, oxen and deer;
Perennial plantings that have not reached operational age.
For the above listed fixed assets, as well as for fixed assets of non-profit organizations, at the end of the reporting period, not depreciation, but depreciation is accrued according to the established depreciation rates. Accounting for accrued depreciation amounts is reflected in off-balance sheet account 010 “Depreciation of fixed assets”.
In accordance with paragraph 63 of Methodological Instructions No. 91n, during the useful life of a fixed asset, depreciation is not suspended except in the following cases:
ü transfer of fixed assets by decision of the head of the organization for conservation for a period of more than 3 months:
ü during the restoration period of the facility, the duration of which exceeds 12 months.
Paragraphs 21-25 of PBU 6/01 establish the following rules for calculating depreciation charges:
· accrual of depreciation charges for an object of fixed assets begins on the first day of the month following the month of acceptance of this object for accounting, and is carried out until the cost of this object is fully repaid or this object is written off from accounting;
· accrual of depreciation charges for an item of fixed assets ceases from the first day of the month following the month of full repayment of the cost of this item or write-off of this item from accounting;
· during the useful life of an object of fixed assets, the accrual of depreciation charges is not suspended, except in cases where it is transferred by decision of the head of the organization to conservation for a period of more than three months, as well as during the restoration period of the object, the duration of which exceeds 12 months;
· depreciation charges for fixed assets are charged regardless of the organization’s performance in the reporting period and are reflected in the accounting records of the reporting period to which it relates;
· the amounts of accrued depreciation on fixed assets are reflected in accounting by accumulating the corresponding amounts in a separate account.
Clause 18 of PBU 6/01 establishes four method of calculating depreciation:
· linear method;
· reducing balance method;
· method of writing off cost based on the sum of the numbers of years of useful use;
· method of writing off cost in proportion to the volume of products (works).
The use of one of the methods of calculating depreciation for a group of homogeneous fixed assets is carried out throughout the entire useful life of the objects included in this group.
Regardless of which method of calculating depreciation charges an organization chooses, it must determine the annual and monthly rates of depreciation charges.
With the linear method, the annual amount of depreciation is determined using the linear method - based on the original cost or current (replacement) cost (in case of revaluation) of the fixed asset object and the depreciation rate calculated based on the useful life of this object.
The useful life of objects is determined by the organization independently when accepting the object for accounting.
The useful life of a fixed asset item is determined based on:
The expected useful life of this facility 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).
In cases of improvement (increase) of the initially adopted standard indicators of the functioning of a fixed asset object as a result of reconstruction or modernization, the organization revises this object.
Until January 1, 2002, when determining the useful life of fixed assets, organizations were guided by Resolution of the Council of Ministers of the USSR dated October 22, 1990 No. 1072 “On uniform standards of depreciation charges for the complete restoration of fixed assets of the national economy of the USSR.”
From January 1, 2002, for tax accounting purposes, when determining the useful life of fixed assets, organizations must be guided by Resolution No. 1.
Based on Letter of the Ministry of Finance of the Russian Federation dated August 29, 2002 No. 04-05-06/34, when applying this resolution for accounting purposes, organizations use the specified Classification to determine the useful life of fixed assets accepted for accounting (account debit), starting from January 1, 2002.
Depreciation on fixed assets that were accepted for accounting before January 1, 2002 for accounting purposes continues to be accrued based on the useful life determined when the object was registered and the depreciation calculation method chosen by the organization for a group of homogeneous objects.
Example.
The cost of the fixed asset is 260,000 rubles. In accordance with the classification of fixed assets included in, approved by Decree of the Government of the Russian Federation of January 1, 2002 No. 1, the object is assigned to the third depreciation group with a useful life of over 3 years to 5 years inclusive. The useful life is set at 5 years. The annual depreciation rate is 20% (100%: 5 years), the annual depreciation amount is 52,000 rubles (260,000 x 20/100), the monthly depreciation amount is 4,333.33 rubles (52,000/12).
The reducing balance method for determining the useful life is established in the case when the efficiency of using an item of fixed assets decreases with each subsequent year.
The annual amount of depreciation charges is determined based on the residual value of the fixed asset item at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this item and the acceleration factor established in accordance with the legislation of the Russian Federation.
Example.
The cost of the fixed asset is 260,000 rubles. Useful life is 5 years. Acceleration factor 2. Annual depreciation rate 20%. The annual depreciation rate taking into account the acceleration factor is 40%.
In the first year of operation:
The annual amount of depreciation charges will be determined based on the initial cost formed when capitalizing the fixed asset item and will amount to 104,000 rubles (260,000 x 40% = 104,000).
In the second year of operation:
Depreciation will be determined based on the residual value of the object at the end of the first year of operation and will be 62,400 rubles ((260,000 - 104,000) = 156,000 x 40%).
In the third year of operation:
Depreciation will be determined based on the residual value of the object at the end of the second year of operation and will be 37,440 rubles ((156,000 - 62,400) = 93,600 x 40%).
In the fourth year of operation:
Depreciation will be determined based on the residual value of the object at the end of the third year of operation and will be 22,464 rubles ((93,600 - 37,440) = 56,160 x 40%).
During the fifth year of operation:
Depreciation will be determined based on the residual value of the object at the end of the fourth year of operation and will be 13,478.40 rubles ((56,160 - 22,464) = 33,696 x 40%).
The accumulated depreciation over five years will be 239,782.40 rubles. The difference between the original cost of the object and the amount of accrued depreciation in the amount of 20,217.60 rubles represents the liquidation value of the object, which is not taken into account when calculating depreciation for years other than the last year of operation. In the last year of operation, depreciation is calculated by subtracting the salvage value from the residual value of the object at the beginning of the last year.
When organizations choose to calculate depreciation using the declining balance method, it should be remembered that, starting from 2002, the mechanism of accelerated depreciation, previously established by Decree of the Government of the Russian Federation of August 19, 1994 No. 967 “On the use of the mechanism of accelerated depreciation and revaluation of fixed assets” declared invalid. This cancellation was made by Decree of the Government of the Russian Federation of February 20, 2002 No. 121 “On amendments and invalidation of certain acts of the Government of the Russian Federation on taxation of corporate profits.”
With this method, the annual depreciation rate 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 useful life of the object.
Example.
The cost of the fixed asset is 260,000 rubles. Useful life is 5 years. The sum of the numbers of useful years will be 1 + 2 + 3 + 4 + 5 = 15.
In the first year of operation, the ratio will be 5/15, the amount of accrued depreciation will be 86,666.67 rubles (260,000 x 5/15).
In the second year of operation, the ratio is 4/15, the amount of accrued depreciation is 69,333.33 rubles (260,000 x 5/15).
In the third year of operation, the ratio is 3/15, the amount of accrued depreciation is 52,000 rubles (260,000 x 3/15).
In the fourth year of operation, the ratio is 2/15, the amount of accrued depreciation is 34,666.67 rubles (260,000 x 2/15).
In the last, fifth year of operation, the ratio is 1/15, the amount of accrued depreciation is 17,333.33 rubles (260,000 x 1/15).
When writing off the cost of a fixed asset in proportion to the volume of products (work, services), depreciation charges are 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 item and the estimated volume of products (work) for the entire useful life of the object fixed assets.
Example.
The cost of the car is 65,000 rubles, the estimated mileage of the car is 400,000 km. In the reporting period, the car's mileage was 8,000 km, the amount of depreciation for this period will be 1,300 rubles (8,000 km x (65,000 rubles: 400,000 km)). The amount of depreciation for the entire mileage period is 65,000 rubles (400,000 km x 65,000 rubles: 400,000 km).
Having analyzed various methods of calculating depreciation, we can conclude that when using the reducing balance methods and writing off the cost by the sum of the numbers of years of the useful life, the amount of depreciation charges decreases over the years. When choosing one of these methods for calculating depreciation, accountants must remember that the accrued amount of depreciation affects the cost of products, work performed, services rendered.
In organizations with a seasonal nature of production, the annual amount of depreciation charges on fixed assets is accrued evenly throughout the period of operation of the organization in the reporting year.
The monthly depreciation rate in all cases will be 1/12 of the annual depreciation rate.
Clause 18 of PBU 6/01 provides that fixed assets costing no more than 10,000 rubles per unit or another limit established in the accounting policy based on technological features, as well as purchased books, brochures and similar publications, are allowed to be written off as production costs ( ) as they are released into production or operation. In order to ensure the safety of these objects in production or during operation in an organization, it is necessary to organize control of their movement.
The effect of this norm in terms of cost restrictions “no more than 10,000 rubles per unit or other limit established in the accounting policy based on technological features” based on the Letter of the Ministry of Finance of the Russian Federation dated August 29, 2002 No. 04-05-06/34 applies only to fixed assets accepted for accounting after January 1, 2002.
You can find out more about the issues of accounting and taxation of transactions with fixed assets in the book of JSC “BKR Intercom-Audit” “Fixed Assets”.
