From management efficiently organized and the extent of the information to ensure its services depends on the quality of financial and economic activities of the company.To date, a small number of domestic enterprises set different accounting system and organized management, ensuring the suitability of the information for analysis and operational management.However, it must be accurate and objective.
information accounting departments should have a small number of indicators that will satisfy the maximum number of users.Credentials should be formed to make the right decisions aimed at effective management of the enterprise.
Management of each company takes care of the effectiveness of management of the property for business development as well as fixed assets have rather big cost.To update its active part, you can use special techniques such as accelerated depreciation method.
What is depreciation?
Depreciation of fixed assets of the economy as a category is a part of the costs to be included in production costs.In addition, it is the accumulated financial source of income, is used to recover capital investments.
plant and equipment for a long time involved in various activities of the organization.However, they will eventually wear out and share their own cost between costs of production and circulation.Depreciation is credited to the fixed assets of the company, regardless of whether they are or not.
How is depreciation?
Depreciation is permissible only in the ways provided for by law.Today in Russia, this procedure is performed by one of the following options:
- declining balance method;
- straight-line method;
- depreciation on the amount of the application period, expressed in years;
- performing write-off rates in proportion to the volume of work;
- accelerated depreciation.
use one of the available methods of depreciation carried out during the whole period of useful application.
What is the accelerated depreciation?
Accelerated depreciation is a fast transfer rates of objects of fixed capital in the cost of products manufactured with them.Mainly domestic literature, which is dedicated to tax and accounting, exclude the presence of a well-defined border in deciphering the concept of accelerated depreciation and methods of calculation.
essence of the mechanism lies in the fact that at the beginning of the application amount will be substantially higher than depreciation, which are usually charged at the end of the useful application of the object of fixed capital.
When using accelerated depreciation?
Accelerated depreciation is applied in the following cases:
- for assets that differ in a decrease in volume of production for a period of use;
- depreciation of assets comes quickly;
- intensity increases repair costs during the operation.
This method applies to the active part of fixed assets that was put in place for the release of funds aimed at the acquisition of modern equipment and materials, as well as the expansion of exports.This is done in cases where the need for mass replacement of old equipment with a new higher level of productivity.
accelerated depreciation method also applies to a variety of vehicles and equipment, if the standard period of operation does not exceed three years.Aircraft-motor technique is also subject to this procedure, but their life is determined by the hours of operation.In addition, accelerated depreciation are building new businesses that have increased the burden on the fixed assets.
purpose of accelerated depreciation
Accelerated depreciation allows you to write off the cost of capital the fund is much faster than the established norms provided.Its purpose is to encourage the use of investments.This is due to the fact that the investment of capital entails getting now right to defer the payment of fees and taxes.
In the case of the accelerated depreciation tax liability will be reduced as the company's profit will not include the amount of depreciation.Once the value of the assets will be amortized in full, will increase the profit organization, and therefore increase the amount of taxes.
Calculation of accelerated depreciation
In the case of non-linear method of depreciation amount per month will be determined as the product of the residual value of the property.It is calculated using the formula:
- K = Koef: n x 100%, where
K - depreciation rate to the initial price of the object, which is expressed as a percentage;
Koef - acceleration factor, which depends on the legislation;
n - the useful life of the application object, expressed in months.
After the residual price of the equipment will be equal to 20% of the original amount, it will be accepted as a base for subsequent calculations.In this case, the amount of depreciation for the month will be determined by dividing the base price by the number of months that are left before the end of the useful life of the application object.
This procedure allows faster depreciation or reduce the residue.If you use it, reduced depreciation over the useful life of the assets.
For tax, this method has a special advantage.For the current activities will be available to a large amount of capital assets and stitched tax if the assets will be written off.
method of reducing the payments has the following benefits: amortized cost and effectiveness of assets is reduced and low depreciation will offset the high cost of maintenance and repair of old equipment.To do this, you need to accelerate depreciation, but at first better to increase contributions in order to compensate for the uncertainty in the matter of aging equipment.
wear factor of fixed capital
accelerated depreciation rate is an indicator, which equals the amount received to the amortization of the original price of the underlying equity.For its calculation is necessary to use the data of the balance sheet.Wear factor indicates the degree of depreciation of fixed assets, ie a measure of their financial future replacement when worn.
This indicator is often used to indicate the status of fixed capital.It should also be noted that the coefficient of this type does not reflect the actual depreciation of the equipment and does not allow to accurately assess the current status.That is, these figures are quite conventional.
Despite their convention, they have some analytical value.In general it is considered undesirable if the wear factor is less than 50%, and the life - not less than 50%.An objective assessment of performance is achieved during its comparison with the value of the index and middle enterprises rivals its value in the industry.The coefficient of accelerated depreciation is dividing the depreciation on the original cost of fixed assets.
Accelerated depreciation for leasing
using an accelerated method of depreciation in respect of the subject of financial lease, you can achieve a profit.However, potential customers of companies providing leasing services, questioned the benefits of the method and mechanism of action.
When used in relation to the object of leasing accelerated depreciation reduces income tax during the term of the leasing contract.In addition, you can reduce the amount of property tax on the facility agreement.The policy of accelerated depreciation allows you to redeem the subject of the lease agreement at the end of its lease at the lower residual value.Certainly, it is advantageous conditions.
How is the rate of accelerated depreciation for leasing?
legislation established that when calculating depreciation of property which is the subject of leasing, the taxpayer has the right to use special factors.If the citizen is going to use this right, it is necessary to consolidate this condition in its accounting policy for the conduct of tax accounting.
On the basis of legal provisions, taxpayers may apply accelerated depreciation rate for leasing if it does not exceed 3. It can be applied in respect of depreciable operating systems that are the subject of the leasing agreement.
Redemption of the leased asset
During the lease by leasing is beneficial not only to accelerate depreciation, but also to redeem the object at the minimum residual value.Contracts of this type allow the purchase item after a specified term of the lease expires.It is possible to apply the method of accelerated depreciation.The equipment in this case refers to the fifth amortization group, it can be written off after 28 months of operation.This can be done if accelerate depreciation and item will have a minimum residual value.Then, it can be advantageous to redeem.
