Net fixed assets corresponds to their historical cost excluding depreciation, amortized over the period of operation.
During beneficial use fixed assets depreciation, to produce the accumulation of funds for restoration exposed the moral and physical depreciation.On the size of the data contributions affect useful life.Under this category refers to the time interval when the use of the facility brings a certain income to the enterprise and serves as a means to achieve their goals.
residual value of fixed assets
period of useful life is calculated based on the projected duration of the operation of the facility with the required parameters of power, performance and degree of deterioration in certain conditions of the organization.Operating conditions depend on the number of working shifts, the effectiveness of the repair and maintenance work, aggressive ambient influences.The criterion for determining the period of useful life of the object are the regulatory and legal conditions for operation of the object.For example, in the transfer of fixed assets in trust determination of its useful life will be carried out in accordance with paragraphs of the contract.
To calculate the residual value, it should be from the initial asset value minus the sum of depreciation.Residual value is often called the book, because it is reflected in the balance sheet.Because of that factor in determining the carrying value of fixed capital stands initial value of its real precise definition depends on the correctness of determining the residual value of the property.In addition, the size of the initial cost will depend on the amount of depreciation.According to the methodology for determining the initial value does not take into account such factors as inflation, innovative processes that reduce production costs, while at the same time, and the value of fixed assets.
Thus, as the market changes of fixed assets, the company regularly performs revaluation which changes the original cost.Typically, this is carried out in the early revaluation of each year.
The accounting residual value is reflected in the two accounts of "Depreciation" - 02 "Fixed Assets" - 01, which take into account the movement and status of assets.
first of these bills shows the amortization of accumulation.It includes debit depreciation write-offs in the event of disposal of fixed assets and adjustments arising on the revaluation in the case of reducing the cost.Credit account displays the opening balance, amortization, and adjustments made with an increase after the revaluation of the initial cost of the asset.Closing balance represents the amount of accumulated depreciation.
On account "Fixed assets" shows the status of their replacement cost.The debit of the account allows for the replacement value of the remaining assets, the initial cost of new assets and the increase in initial cost due to revaluation or reconstruction.Credit displays the initial value of the disposal of fixed assets, which is divided by the sum, which listed the residual value and depreciation.
With both accounts is determined by the real residual value, which is calculated as the difference balance of the account "Fixed Assets" and accounts 02.
