Depreciation - a lengthy process of transferring the original cost of worn instruments of labor (ie core) for a product that has been produced with their help.The term is derived from the Latin word "amortisatio", which translates as "redemption".There is also the accelerated depreciation.It is a process of deductions occurring at a higher rate than average or acting.
Depreciation - a tool wear compensation and the gradual deterioration of fixed assets.They exist in the form of cash, which is directed to the future for the construction or repair, as well as the production of new tools.Produced by well-defined rules concerning the value of the basic funds.Deductions are usually included in the cost of treatment or production.In order to find the amortization period is necessary to divide the SRT by its norm.
What is the rate of depreciation?
This pre-set percentage of annual compensation for the original price of the lost or worn tools.
Depreciation accounting
Today, there are four methods of calculation to account for the depreciation of assets accounts:
1. The first method is called the declining balance method.For each period, the total amount of depreciation is equal to the residual value, multiplied by the percentage of strictly defined.Every year, depreciation is calculated on the residual value at the beginning of the year.
2. The linear method in which the amortization.This straight-line depreciation from the original assets to their residual prices.It carried out during the life of the means of labor.The current residual value (the one that exists at the moment) can be determined by subtracting the total accumulated depreciation of fixed assets from the initial cost.
3. The method of write off the cost in proportion to the volume of work done (or produced products).In this case, the process is based on a specific physical terms (for example, an hour of use the equipment - the machine or the machine).
4. The method of gradual depreciation, focused on the sum of the useful life of use.
Depreciation in the tax records
How is the tax accounting for depreciation?This process, which is rather official character for the reason that describes rather than real wear and statutory limits of depreciation.They can reduce the income tax base.In tax accounting there are two methods of depreciation deductions resources: linear and nonlinear.The company should choose the method of depreciation deductions of funds.Thus it is imperative to use the selected method of any group of objects throughout the useful life.
Under the current Russian tax legislation, company property is divided into non-depreciable and depreciable.This last - this is the property of the company or organization that is represented in the form of intellectual work and is used to generate income.It differs from the non-depreciable asset is that the cost thereof shall be repaid by the amortization charge of funds.The property is recognized amortized when its service life is more than twelve months, and the initial cost - more than forty thousand.
Manual any business needs to know that this depreciation.This will correctly calculate the income of the company and not to remain in the red in case the equipment is worn or out of order.
