The production process of most companies is provided by fixed assets. The financial results of the company depend on the type of funds used in the production process, their technical characteristics, physical condition. Fixed assets can be considered as an object of labor, since they are repeatedly introduced into the production process. While they do not change their shape, and the wear processes are carried out evenly and transfer their value to manufactured products.
Concept
Often you can find both the concept of "fixed capital" and "fixed assets". The concept of "fixed capital" was first used by Adam Smith in his writings. Moreover, under capital, he meant capital, which was aimed at increasing the equipment of the company, buying objects that are able to create value in the process of its functioning.
Karl Marx believed that fixed capital is only that part of the capital of a company that takes full part in the production process of the company’s products, and also transfers part of its value to the value of manufactured goods in the process of production, thereby wearing out.
The studied category of enterprise funds is part of the property, which is repeatedly used as a means of labor in the production of goods, performance of work or the provision of services for a period of more than 12 months.
Role and significance
The main assets are assets of manufacturing enterprises. Their feature: useful use for a period exceeding a calendar year. They gradually transfer their costs to the value of manufactured products. This is due to the formation of a depreciation fund, which has always been established by law.
The larger the number of fixed assets owned by the company, the higher its security margin and asset value. Quality and quantity are established through secondary and primary reporting forms. The degree of participation of their active part in the production process is also calculated.
State-owned manufacturing enterprises also have fixed assets. A mandatory element is their annual inventory. By financing these funds, the company makes capital investments that can bring it long-term profit. Fixed assets are classified as assets of the company, which allows you to use them as collateral if necessary.
Key feature
An asset is accepted for accounting as an asset in the event that the following conditions are met:
- OS is used only for the production of goods, when performing work or providing services, for the needs of the organization’s management.
- OS is used for a long period of more than 12 months.
- The company does not provide for the subsequent resale of the property.
- The object is able to bring economic benefits (income) to the organization in the future.
Main objects
PBU 6/01 clearly spells out the basic rules for classifying fixed assets as different groups:
- building;
- facilities;
- working mechanisms, machines, equipment;
- devices and instruments for measuring and regulation;
- Computer Engineering;
- vehicle;
- instruments;
- main inventory;
- pedigree cattle;
- perennial green spaces;
- roads;
- capital investments for land improvement;
- plots of land;
- natural objects water, natural resources);
- other objects.
This list may be continued. However, there are a number of signs by which an object cannot be assigned to the main one.
What can not be attributed?
PBU "Accounting for fixed assets" does not apply to:
- Machines, equipment and other similar items listed as finished products in the warehouses of a manufacturing organization.
- Items delivered in installation that are in transit.
Division into groups
OS objects are presented in the form of several groups:
- fixed assets of a mechanical nature that affect production characteristics and their capacity;
- means of labor necessary for production. These are buildings, structures and other real estate;
- transport and production equipment.
Each group has its own characteristics.
To determine the group of fixed assets, it is necessary to determine its main characteristics and features.
Cost determination
The main types of value of fixed assets that are used to evaluate fixed assets are as follows: initial, residual and restoration.
Acceptance of the asset for accounting is carried out by assessing the initial cost, which is the sum of the actual costs of the organization for the purchase, construction and production of the asset, excluding VAT and other taxes. It also includes the amount in the form of a contribution to the authorized capital upon registration of the company.
Funds contributed to perennial plantations for land improvement are included in the studied group of objects annually in the amount of expenses associated with the areas that were commissioned in the reporting year, regardless of the date of completion of all work.
The residual value of fixed assets means the difference between the cost of the initial and the amount of depreciation. This type of value is reflected in the balance sheet of the company.
The replacement cost is understood as an assessment of OS facilities established in modern conditions, at current prices and technologies. It is used by the company after revaluation.
When revaluing, it should be borne in mind that subsequently such facilities should be regularly revalued. Therefore, the cost of operating systems that are not revalued does not significantly differ from the current value.
Depreciation calculation
In the process of using research objects, it becomes necessary to assess the level of depreciation of fixed assets. To do this, apply depreciation rates for the types of fixed assets depending on the period of their use.
Depreciation of fixed assets is considered as a loss of functionality of the object of study due to its use in production.
Depreciation of OS objects can be divided as follows:
- Depreciation of funds in the process of participation in production, the amount of depreciation depends on the volume of production, the number of working hours.
- Depreciation during storage of OS objects, which depends on the storage conditions of the research object and its storage time.
- Obsolescence. Technological and innovative processes in the surrounding world are creating ever new types of equipment and means of labor, while it is possible to allocate obsolete funds.
As an object for accounting in accounting, only the first and second types are used.
As the processes of fund depreciation proceed, depreciation is charged. If depreciation of the studied objects involved in the main production is accrued, then the following entries are made in accounting: DB “Primary Production” - CT “Depreciation”.
Depreciation of fixed assets is determined in two ways: economic and accounting. From an accounting point of view, this is the process of losing the value of fixed assets in accounting, which may depreciate as a result of depreciation (moral or physical).
The level of deterioration of OS objects depends on its type, speed of operation, and repair. From an economic point of view, one can distinguish the following types of depreciation in relation to a fixed asset: technological, traditional, industrial.
Depreciation is not an assessment of the studied objects or a method of their compensation, but a method of allocating costs to the cost of production, established by the useful life of the asset.
One of the most important properties of OS objects is their gradual depreciation, which is reflected in the account through depreciation. Depreciation in the accounting statements is reflected in the cost (or administrative expenses, depending on the type of fixed asset), which reduces the company's profit.
Depreciation is “non-monetary” expenses, which means the fact that its use in no way affects the final financial results of the company.
Accounting
Accounting of fixed assets is carried out so as to establish their presence in each group and separately for the object, location, source of occurrence.
All this can be reflected in analytical accounting. For each inventory object, analytical accounting is opened. In synthetic accounting use account 01 "Fixed assets". All transactions on the movement are approved in the main accounting documentation in accordance with standard forms.
Organization of accounting for fixed assets at the enterprise is as follows.
OS objects can be accounted for by the company on account 01, which is active.
If the company uses finished products or purchased goods as an asset, you must first reflect the formation of its initial value in the usual way according to account 08 “Investments in non-current assets”: Dt 08 - Kt 43, 41, 10, 60, 70, 69.
After that, the calculated initial cost of fixed assets is explained by the debit of account 01: Debit account 01 - Credit account 08.
From this moment, the operating system is accounted for.
Features of accounting in "1C"
The 1C program assumes the existence of several sections intended for the organization of accounting. They include the following options for accounting for fixed assets in "1C":
- "Getting the OS." Reflects the operations associated with the acquisition of fixed assets by the enterprise, as well as the reflection of the additional costs included in their value.
- "Accounting OS". The section provides documentation related to the reflection of the facts of OS movement, their modernization or inventory.
- "OS Utilization". It is possible to write off the fixed asset or transfer it to the other side.
- "Depreciation of the OS." The operations of calculating and calculating depreciation are described.
Conclusion
The introduction of a system of rational accounting of fixed assets at enterprises is an important element of management and accounting activities, which underlies the growth of profitability of the use of fixed assets.
The economic and social significance of the studied fixed assets at the macro level is due to many reasons:
- fixed assets are recognized as a significant part of the country's national wealth, and their increase leads to an increase in the country's wealth;
- the competitiveness of domestic products and production efficiency largely depend on the size of the OS and their condition.