about depreciation can be described as a gradual process of transferring manufactured products value of fixed assets.According to the norms of depreciation, the company makes contributions to offset the moral and physical aging of plant and equipment.Produced depreciation expenses related to production and produced on a monthly basis from the accounting value (balance) of fixed assets for inventory objects or specific groups.
depreciation rates of fixed assets are established by the public authorities the annual interest rate repayment of the cost of production of fixed assets and show the amount of annual contributions in value terms.In other words, the depreciation rates are expressed as a percentage ratio of the product for a year to the cost of depreciation for the balance of the basic industrial capital.
Generally, this ratio is set and periodically review the state bodies, the depreciation rates are the same for all organizations and companies of all forms of management and ownership.
amortization policy of the state - is part of the overall scientific and technical policy of the country.State, setting rules for the calculation of depreciation, the procedure for their use and charges, regulates the nature and rate of reproduction in all sectors of the economy, and with this ratio determines the rate of depreciation, and then the renewal of fixed capital.
operating in the country cushioning system has the following characteristics: depreciation rates are uniform, for the calculation of a uniform straight-line method is used, deductions are included in the cost price, are made in the period of actual use of the term labor.
Today there are new depreciation rates and the rules for its calculation.
no longer hold payments for capital repairs.Any repair work carried out at the expense of cost, and if necessary a reserve fund allocations for repair.
At the end of life (normative) for vehicles, equipment or machinery depreciation ceases.While earlier is calculated for the entire period of use of fixed assets, regardless of life.By installations, buildings and other fixed assets remains the same procedure for calculating depreciation for the entire actual period of service.
To increase interest among companies to upgrade plant and equipment is allowed to apply accelerated depreciation of fixed capital activities (equipment, machinery, transport).The bottom line is the full transfer value (balance) of these funds to the costs in a shorter period, it increases the rate of depreciation, but no higher than twice.
addition, small businesses and organizations in the first year of operation may further write off the costs of half of the cost of its fixed assets, the life of the object should be more than three years.
Because used accelerated annual rate of depreciation, you can quickly update the active fixed assets, save using a sufficient amount of depreciation for the renovation and reconstruction of the production, to reduce income tax.In addition, this measure avoids the wear and tear of active assets, Support Vat them at a high level, which will increase production capacity and to produce better quality products with lower cost.
positive development is also in the fact that depreciation charges are completely at the disposal of the company.
