For which fixed assets should depreciation be charged?

Who charges depreciation?

Depreciation on fixed assets belonging to them is charged to non-profit organizations (paragraph 3 of clause 17 of PBU 6/01).
Situation: can a commercial organization charge depreciation on its fixed assets in accounting?

According to the current legislation, as a general rule, commercial organizations in accounting do not charge depreciation on their fixed assets (section III of PBU 6/01). The exceptions are:

housing facilities used for the organization’s own needs;

external improvement objects;

productive livestock and domesticated wild animals;

specialized shipping facilities;

forestry or road facilities.

For these objects, charge depreciation if the following conditions are simultaneously met:

the fixed asset item was accepted for accounting before January 1, 2006;
for an object, after it was accepted for accounting, depreciation was accrued in accordance with the norms of accounting legislation that were in force on the date of its acceptance for accounting.

It is explained this way. Since 2006, by order of the Ministry of Finance of Russia dated December 12, 2005 No. 147n, the condition on the accrual of depreciation by commercial organizations for a number of objects has been excluded from paragraph 17 of PBU 6/01. However, this order did not provide for the procedure for reflecting the consequences of such changes in accounting policies in accounting and reporting. Therefore, the new approach to charging depreciation instead of depreciation could only be applied to those fixed assets that were accepted for accounting after January 1, 2006. And for previously accounted for fixed assets, the previous procedure for calculating depreciation was retained.

This conclusion is confirmed by letters from the Ministry of Finance of Russia dated July 6, 2006 No. 03-06-01-04/141, dated June 7, 2006 No. 03-06-01-04/129, dated September 20, 2006 No. 03-06 -01-02/41 and the Federal Tax Service of Russia dated November 2, 2006 No. ШТ-6-21/1062. Although they clarify the issue of accounting for housing assets, the conclusions drawn in them can be extended to other fixed assets for which depreciation was accrued before 2006.

The procedure for calculating depreciation in accounting for commercial organizations in this case is similar to the current procedure for calculating depreciation for non-profit organizations.

It should be noted that depreciation accrued in accounting affects the calculation of property tax. When calculating property tax, fixed assets are accounted for at their residual value, which is determined according to accounting rules. If an organization accrues depreciation on the fixed assets it owns, then when calculating the tax base for property tax, such fixed assets must be included at their original cost minus depreciation. To determine the average annual value of property, the amount of depreciation that must be accrued for the year is distributed evenly across the months of the tax period. This procedure is established by paragraph 1 of Article 375 of the Tax Code of the Russian Federation and is explained in the letter of the Ministry of Finance of Russia dated April 18, 2005 No. 03-06-01-04/204. The procedure for calculating depreciation in accounting does not affect the calculation of other taxes.

How and why depreciation is taken into account

Depreciation of fixed assets directly determines the key characteristics of business success, namely:

volume of goods produced;
their quality;
product competitiveness;
production costs, etc.

It follows from this that accounting and control of the wear process is one of the most important tasks of enterprise management.

To quantitatively account for the depreciation of fixed assets, the concept of depreciation is used - a gradual transfer of the value of fixed assets to the cost of products that were produced with their direct participation.

Depreciation charges are intended for partial restoration of fixed assets (repairs) or their complete replacement (renovation). They are calculated based on depreciation rates: determining the share of cost that is annually transferred from fixed assets to manufactured products. They depend on:

the useful life established for each type of fixed assets;
depreciation method.

Standard service life

It is determined by a standardized classifier, within the framework of which this period can be established by the organization at its discretion within the established boundaries of the depreciation group.

Depreciation calculation method

Fixed assets are divided into groups with similar characteristics, and for each group one of the methods for calculating depreciation charges is applied, which will be relevant throughout the entire regulatory period.

Proportional methods – depreciation is calculated evenly throughout the reporting period, in accordance with the norm. These include:
wear depending on service life;
depreciation depending on the work performed.
Regressive methods – accelerated depreciation, when during the first period of operation more depreciation is accrued than in subsequent years. These include:
fixed life method;
“sum of numbers” method (cumulative).

Types of activities of non-profit organizations

A non-profit organization can have several types of activities:

statutory (non-profit), for which the organization was created and which is aimed at solving social, cultural and other socially significant problems;

entrepreneurial (commercial), which is of an auxiliary nature and the results of which (profit) should be aimed at achieving statutory (non-commercial) goals. As part of this activity, a non-profit organization has the right to engage in production, trade, participate in the authorized capital of other organizations, as well as conduct other operations not prohibited by law.

This follows from the provisions of paragraph 2 of Article 2 and paragraph 2 of Article 24 of the Law of January 12, 1996 No. 7-FZ.

A non-profit organization must take into account income and expenses related to business activities separately (clause 3 of Article 24 of the Law of January 12, 1996 No. 7-FZ).

Wear and serviceability coefficient of funds

To understand how worn out the OS is, two coefficients are calculated - wear and serviceability.

The first indicator reflects information about the level of depreciation of the fund, as well as the degree of its depreciation. The suitability factor provides additional information about the object.

Coefficient	Formula for calculating the coefficient	Decoding the formula
Wear	An/PSos * 100%	An – accumulated depreciation (the amount is taken from balance sheet account 02); PSOS - the initial cost of fixed assets (that is, the price at which the asset was accepted for accounting)
Suitability	(PSos – An) / PSos * 100

Thus, in order to find the depreciation and serviceability coefficient, it is necessary to know the amount of accumulated depreciation charges from the period when the asset was put into operation to the present day, as well as the cost of the asset at the time of purchase.

Accounting

Non-profit organizations can conduct accounting in a simplified way. But, if the receipt of funds and property for the previous reporting year exceeds 3,000,000 rubles, accounting should be kept in full.

This procedure is established by paragraph 1 of Article 32 of the Law of January 12, 1996 No. 7-FZ, paragraph 1 of Part 1 of Article 2 and paragraph 2 of Part 4 of Article 6 of the Law of December 6, 2011 No. 402-FZ.

See additional reporting forms for non-profit organizations

Consequently, non-profit organizations must comply with the procedure for accounting for fixed assets established by PBU 6/01.

Unlike depreciation, depreciation of fixed assets is not included in expenses. Depreciation amounts are reflected on the balance sheet in account 010 “Depreciation of fixed assets.” When accruing depreciation, the following is posted monthly:

Debit 010

– depreciation has been accrued on the fixed assets of a non-profit organization.

Such rules are established by paragraph 17 of PBU 6/01.

Wear calculation

The transfer of the cost of fixed assets to the company's products is carried out by charging depreciation of fixed assets. It is based on the calculation of depreciation, based on the principle of gradualism. Depreciation expenses are considered to be amounts that form part of the cost of fixed assets and are then transferred to the price of the product. They form the cost item “depreciation” in the cost of the product. Their size is set as a percentage according to standards calculated on the basis of approved OS classifiers.

All fixed assets are divided into 10 depreciation groups, and the main criterion for division is the service life of the object. For example, the 1st group includes OSes with a service life of no more than 2 years, and the 10th group includes objects whose operation is expected to last over 30 years. Tax accounting is guided by the determination of the depreciation group of an object based on the classifier, accounting - establishes it based on considerations of expected operation.

The depreciation rate is the percentage of depreciation of fixed assets, the calculation formula of which is the ratio of one unit to the number of months of effective operation of the facility. We can assume that depreciation is an expense calculated as a percentage of the cost of the asset, allocated to production costs and included in the cost of the product.

Calculation of depreciation amount

To calculate your monthly depreciation amount, you first need to determine your annual depreciation rate. To do this, use the formula:

Annual wear rate

Useful life of a fixed asset, years

100%

Then calculate the annual depreciation amount. To do this, use the formula:

Annual depreciation amount

Annual wear rate

Initial (replacement) cost of fixed assets

Every month in accounting you need to reflect accrued depreciation in the amount of 1/12 of the annual amount.

This procedure is provided for in paragraph 19 of PBU 6/01.

An example of reflecting depreciation on a fixed asset of a non-profit organization in accounting

The non-profit organization "Alpha" purchased a car for use in its statutory (non-commercial) activities. Its initial cost, formed in accounting, is 200,000 rubles. When commissioned, the vehicle had a useful life of 4 years.

The annual depreciation rate for a car is: (1: 4 years) × 100% = 25%.

The annual depreciation amount is: RUB 200,000. × 25% = 50,000 rub.

The monthly depreciation amount is: RUB 50,000. : 12 months = 4167 rub.

Starting from the month following the commissioning of the vehicle, the Alpha accountant reflects the accrual of depreciation on a monthly basis by posting:

Debit 010 – 4167 rub. – depreciation has been accrued for the vehicle for the current month.

Degree of depreciation of fixed assets

To determine the degree of wear, an indicator such as wear coefficient is used. It shows how worn the object is, i.e. the user will find out to what extent the upcoming replacement of the object is financed as it wears out. It is calculated by the ratio of the amount of accrued depreciation to the original cost of the object.

For example, a company operates a machine with wear and tear, i.e. depreciation charges, in the amount of 20,000 rubles. The initial cost of the machine is 100,000 rubles. Let's calculate the degree of depreciation of fixed assets - this can be done using the formula:

K = AO / PS x 100, where AO is the amount of accrued depreciation, and PS is the original cost.

K = 20,000 / 100,000 x 100 = 20%

This means that the object is worn out by 20%, i.e. The accumulation of the depreciation fund for the purchase of a new machine is 20%. Thus, the depreciation of the enterprise's fixed assets is equal to the amount accumulated for their reproduction.

BASIC

In tax accounting, non-profit organizations must reflect only those income and expenses that are associated with their entrepreneurial (commercial) activities. Targeted revenues and expenses associated with non-commercial (statutory) activities are not taken into account when calculating income tax. This follows from the provisions of subparagraph 14 of paragraph 1, paragraph 2 of Article 251 and paragraph 1 of Article 252 of the Tax Code of the Russian Federation.

Fixed assets used in commercial (entrepreneurial) activities and acquired from income from this activity can be depreciated in tax accounting (subclause 2, clause 2, article 256 of the Tax Code of the Russian Federation). Depreciation accrued on these fixed assets is included in expenses and reduces the tax base for income tax (clause 1 of Article 252 of the Tax Code of the Russian Federation). Since depreciation is accrued in accounting for these fixed assets, a constant difference will appear, with which organizations applying PBU 18/02 must calculate a permanent tax asset (clauses 4, 7 PBU 18/02). Reflect its appearance with wiring:

Debit 68 subaccount “Calculations for income tax” Credit 99

– a permanent tax asset is reflected from the difference between the amounts of depreciation and amortization reflected in accounting and tax accounting.

However, non-profit organizations have the right not to use PBU 18/02, which must be enshrined in the accounting policy for accounting purposes (clause 2 of PBU 18/02). Therefore, if an organization does not apply PBU 18/02, there is no need to reflect permanent and temporary differences in accounting.

An example of reflection in accounting and taxation of depreciation and amortization for fixed assets of a non-profit organization. According to the accounting policy for accounting purposes, the organization applies PBU 18/02

Using income from business activities, the non-profit organization "Alpha" purchased sewing equipment, which is used exclusively in business activities. The initial cost of equipment in accounting and tax accounting is 175,000 rubles. The useful life established according to the Classification approved by Decree of the Government of the Russian Federation dated January 1, 2002 No. 1 is 4 years (48 months). According to the accounting policy, for tax purposes, depreciation on fixed assets used in business activities is calculated using the straight-line method.

The monthly amount of depreciation of sewing equipment in tax accounting is equal to the monthly amount of depreciation in accounting and amounts to: 175,000 rubles. : 48 months = 3646 rub./month.

Starting from the month following the commissioning of the sewing equipment, the accountant monthly includes the amount of accrued depreciation in expenses when calculating income tax. At the same time, he makes the following entries in accounting:

Debit 010 – 3646 rub. – depreciation has been accrued for sewing equipment for the current month;

Debit 68 subaccount “Calculations for income tax” Credit 99 – 729 rub. (RUB 3,646 × 20%) – a permanent tax asset is reflected from the difference between the amounts of depreciation and depreciation for sewing equipment.

Fixed assets that are purchased using targeted proceeds (targeted financing funds) are not depreciated. It does not matter whether they are used in statutory (non-commercial) activities or not. Depreciation accrued for these objects in accounting does not affect the calculation of income tax. This procedure follows from subparagraphs 2 and 7 of paragraph 2 of Article 256 of the Tax Code of the Russian Federation. It is confirmed by the Federal Tax Service of Russia in a letter dated December 8, 2009 No. 3-2-13/236.

If a fixed asset was acquired at the expense of targeted proceeds (targeted financing funds), but is intended for use in business activities, its cost must be included in non-operating income subject to income tax (subclause 14, clause 1, clause 2, article 251 , paragraph 14 of Article 250 of the Tax Code of the Russian Federation, letter of the Federal Tax Service of Russia dated December 8, 2009 No. 3-2-13/236).

Such property is recognized as received free of charge, therefore the amount of income must be determined as the market value of the object, taking into account the restrictions provided for in paragraph 8 of Article 250 of the Tax Code of the Russian Federation. The amount of recognized income cannot be lower than the residual value of the fixed asset. But since depreciation was not accrued for such an object, non-operating income must include:

the initial cost of the fixed asset (if it is higher than the market value);

market value of the fixed asset (if it is higher than the original).

Topic 2.1.2 Depreciation and amortization of fixed capital. Leasing

1. Depreciation and amortization of fixed capital

2. Indicators of movement and use of fixed capital

3. Leasing as a form of PF renewal

Question 1. Depreciation and amortization of fixed capital

During operation or inactivity, fixed capital is subject to wear and tear.

A distinction is made between physical and moral wear and tear.

Physical wear and tear is the material wear and tear of fixed capital, the gradual loss of its original quality and consumer value, physical, mechanical, chemical and other properties.

Different types of capital wear out at different times. The amount of physical wear and tear of capital depends on the initial quality of fixed assets, the intensity and nature of their operation and storage conditions.

Factors of physical depreciation of fixed capital:

– degree of load on fixed assets;

– quality of labor tools;

– organization of maintenance and operation of fixed assets;

– the level of aggressiveness of the environment in which they operate;

– level of qualifications of workers and service personnel;

– conditions for implementation and level of organization of the production process.

To assess the degree of physical depreciation of capital, cost, expert and regulatory methods are used.

Cost method

is based on determining the ratio of the costs of reproduction of fixed capital to replacement cost.

Expert method

based on experts’ assessment of the actual technical condition of the facility.

Normative method

is based on a comparison of the actual (Tf) and standard (Tn) service life of the corresponding objects.
Coefficient of physical depreciation of fixed capital
:

or ,

where Ca

– the cost of accrued depreciation.

The formula is applied when Tf < Tn. For objects for which Tf = Tn or Tf > Tn, the coefficient of physical wear is determined by the formula:

, ,

where is TV

– possible residual service life of the PF in excess of Tf.

Tp.i.

– useful life of fixed assets.

Obsolescence of fixed capital is a decrease in its value before the end of its service life due to a decrease in the costs of its reproduction as new types of capital begin to be produced cheaper, have higher productivity and are technically more advanced.

Factors of obsolescence of fixed capital:

- scientific and technical progress;

– use of more productive machines and equipment at related enterprises;

– reduction in the cost of reproduction of fixed capital;

– features and scale of production.

Obsolescence of fixed capital can be complete or partial. Losses from full

Obsolescence can only be eliminated by replacing obsolete machinery and equipment with new, more advanced and cost-effective ones.
Losses from partial
obsolescence can be eliminated as a result of modernization and reconstruction of obsolete types of fixed assets, i.e. technical update.

The gradual wear and tear of the means of labor leads to the need to make accumulations to compensate for the wear and tear of fixed capital and its reproduction. This is done through capital depreciation.

Depreciation of capital is the gradual transfer of its original value as physical and moral wear and tear to the cost of manufactured products.

Deductions

, intended to reimburse the cost of the worn-out part of the capital, are called
depreciation
. The amount of depreciation charges is determined by the depreciation rate.

Depreciation rate

is the annual percentage of transfer of the cost of capital to manufactured products.

In the Republic of Belarus, the calculation of depreciation is regulated by the “Instruction on the procedure for calculating depreciation of fixed assets and intangible assets”, approved by the resolution of the Ministry of Economy, the Ministry of Finance, the Ministry of Statistics and the Ministry of Architecture and Construction on March 30, 2004. In accordance with this instruction, enterprises independently determine the useful life fixed assets, as well as the depreciation method.

The useful life of fixed assets is the expected or estimated period of operation of fixed assets. It is set by each enterprise independently, taking into account the government-approved range.

Based on the useful life of fixed assets, the depreciation rate is determined - the share (%) of the cost of the object to be included in production costs at specified intervals throughout the useful life.

There are linear, nonlinear and productive methods of calculating depreciation.

With the linear method of calculating depreciation, the cost of fixed assets is transferred to the cost of finished products in equal parts (by year) throughout their entire useful life.

The depreciation rate using the straight-line method is the reciprocal of the useful life, which is determined as a percentage by the formula

Annual depreciation charges using this method are calculated using the formula

where Ca is the cost of the fixed assets at the end of the reporting year, subject to depreciation.

The linear method of calculating depreciation is very simple to use, but it does not take into account the uneven depreciation of capital in certain periods of time and does not adequately contribute to the activation of the innovation process in the enterprise.

With a non-linear method of calculating depreciation, the cost of fixed assets is transferred to the cost of finished products unevenly over the years during their useful life.

The objects of application of the non-linear method of calculating depreciation are transmission devices, working power machines and mechanisms, equipment, computer equipment and office equipment, vehicles and other fixed assets that are directly involved in the production process of products (works, services), tools, as well as leasing objects .

The non-linear method of calculating depreciation does not apply to: machinery, equipment and vehicles with a standard service life of up to 3 years, passenger cars (except for special ones); certain types of civil aviation equipment, the useful life of which is determined based on the established resources; unique technology and equipment intended for use only for certain types of testing and production of a limited type of specific product.

The non-linear method involves the use of two accelerated depreciation methods: the sum of numbers method and the reducing balance method.

With the sum of numbers method, for each year of the useful life of the enterprise's fixed assets, the annual depreciation rate is determined as a percentage (Hai), which is calculated using the formula

where Tai is the number of years remaining until the end of the useful life, i = Tp.i.,..., 1;

∑ЧЛ – the sum of the numbers of years of the useful life of the object.

The sum of the numbers of years of useful life of the equipment is determined by the formula

or by direct count.

Annual depreciation charges for each year of the useful life of fixed assets are determined in the same way as with the linear method, but the depreciation rate will decrease every year.

With the declining balance method, the depreciation rate (N.a.) increases taking into account the acceleration factor (up to 2.5 times), and the base for calculating depreciation is the under-depreciated cost of fixed assets. The depreciation rate using the reducing balance method is determined by the formula

where Kusk is the depreciation acceleration coefficient (from 1.0 to 2.5).

Annual depreciation charges using the reducing balance method are determined by the formula

where is Snda

– under-depreciated cost of fixed assets (the difference between the depreciable cost and the amount of depreciation accrued before the beginning of the reporting year) at the beginning of the reporting year, rub.

The sum of numbers and reducing balance methods involve transferring up to 70 - 80% of the cost of fixed assets to the cost of finished products, which allows you to quickly form the enterprise’s own financial resources to update equipment. This is the most important advantage of accelerated depreciation compared to the linear method of its calculation.

The productive method of calculating depreciation is a method in which the annual amount of depreciation charges depends on the value of the depreciable cost of the object and the volume of products, works, and services.

Annual depreciation charges are determined by the formula:

where Vprogi is the projected volume of products, works, services in the i-th year,

i = 1, …, n – years of useful life of the object.