Depreciation - is the gradual integration of the value of objects of non-current assets in the price of manufactured products using them.The amount of wear is one of the components of the costs incurred by the company in the course of economic activity.The total amount of depreciation charges of fixed assets available to the company, is a fraction of the original cost of fixed assets.This value is normal wear and tear.Depreciation is considered to be the criterion of reducing the expression of a long-term asset value.State structures, buildings and equipment used in the production process now gradually deteriorating.The method of amortization is to distribute the value of fixed assets for which they were commissioned on the expected duration of use.In the calculation of the balance sheet profit depreciation is deducted from the amount of income received.
Depreciation is carried out according to the procedure enshrined in Article 259 of the Tax Code.The amounts of depreciation when determining the profit intended for tax should be determined on a monthly basis.Depreciation charges are made individually for each item of non-current assets.The beginning of the definition of depreciation on fixed assets is the first of the month after its commissioning.At disposal of the non-current assets or total cancellation of its value depreciation ceases.This right is a business entity becomes the first of the following month.
Tax Code defined and methods of depreciation of fixed assets.Selection of methods of determining the wear is up to now.There are 2 methods of depreciation - a non-linear and linear.
first method necessarily regard the objects of long-term assets owned by the eighth, ninth and tenth group - buildings, transmission equipment and facilities.Term of putting into operation of these fixed assets is irrelevant.Other objects of long-term assets can carry its original value in either of two methods.The method of depreciation chosen by the company for individual fixed assets does not change throughout the entire period during which a part of its depreciable property.Redistribution of the value of the long-term investments in the price of the products produced in accordance with the view of the period of its useful applications.
Depreciation is calculated using the straight-line method is defined as the product of the original price of each object on the rate of wear.If a non-current asset has been revalued, in the formula, it is necessary to pay attention to the first factor.It will serve as the replacement cost.
If accrued depreciation of non-linear method, the formula for its calculation were included two factors.In this case, they were the residual value and depreciation rate of the specific object of non-current assets.
When using basic tools in an environment where the environment is able to aggressively work on it, the entity's right to apply the multiplying factor.It increases the value of the depreciation rates, but no more than twice.The same right there and increased shift use of the object of fixed assets.
By decision of the director, enshrined in the order on the accounting policy, the taxpayer is entitled to reduce the rate of depreciation.Such a decision must be enforced throughout the tax period.
