Fixed assets are assets of the company, used for an extended period for the provision of services, execution of works, production or management purposes.
The main organization takes account of the assets subject to the following conditions simultaneously.
object is used directly for the services, works, production, for use in the management of rent.Term of use of the object should be more than one year.It is not allowed to resell the asset.The object in the future capable of providing economic benefits to the enterprise.
Fixed assets include buildings, various buildings, power and working machines, equipment and machinery, transport, computing, equipment (hardware and production), perennials, etc..
Accounting and methods of depreciation of fixed assets
Inproduction time or under the influence of the environment is a gradual depreciation of fixed assets are transferred to its initial value during the regulatory period of use in the production costs.The accounting is displayed by charging depreciation on the established norms.In this case, talk about depreciation, which is a decrease in the monetary value of fixed assets initial value of their technical, physical and economic characteristics.Alternatively, the depreciation expresses the accumulation of money that will be used to update aging facilities.This is done by incorporating the cost of depreciation.
The guidelines for the management of accounting of fixed assets are considered such methods of depreciation as a way of declining balance, straight-line method, writing off the cost of using the sum of years of time efficiency and cost of write-offs in proportion to the volume of work (manufactured products).
-line method of depreciation
This method allows you to calculate the depreciation rate for the year in the usual manner.Initial data for calculation is the useful life of action (the use of) the object.Formula: 1 / number of years * 100%.The amount of depreciation for the year is calculated by multiplying the initial replacement cost calculated on a higher annual rate.
nonlinear method of depreciation
With the declining balance depreciation for the year is calculated by multiplying the depreciation rate of the cost (residual) of fixed assets, which occurred in the beginning of the year.
When depreciation is the sum of the values of useful years of the term of the annual amortization of the initial cost of the product determined by means of the annual ratio is calculated by dividing the remaining before the end of the life funds in the amount of numbers of years of useful life of existing facilities.
proportional depreciation method produces depreciation multiplying the volume of work performed (manufactured products) in volume terms for the period and the depreciation rate.The last factor is the ratio of the initial calculated value of assets and the projected output of goods (works) for the time of beneficial use of the asset.In this case calculation of the amount of amortization produce each month.
to taxation may use different methods of depreciation.However, certain basic tools you need to choose a method that will be constantly used in the calculation.
Generally, a tax and accounting depreciation is recommended that straight-line method.In this case, the data of both surveys will be the same, especially since the linear method of depreciation very simple.
