In the process of production use and operation, the fixed assets of an enterprise or company naturally wear out. During this depreciation, they lose their technical properties. Such wear is considered in two forms.
Depreciation is understood as the loss of technological properties and consumer value as a result of the development of scientific research and development and obsolescence of products.
Physical deterioration is a loss of technological qualities as a result of operational production activities of an enterprise or company.
In accounting, it is necessary to account for depreciation deductions arising only as a result of physical depreciation.
Its pace is influenced by factors such as operating conditions of funds, intensity of use, quality of equipment, level of protection against harmful effects, and qualifications of personnel.
The mechanism of the transfer of value and the accumulation of monetary resources to replace worn-out items of equipment is called depreciation, and deductions - depreciation. They are not charged on residential buildings, landscaping facilities, productive livestock, land plots, garden plantings, nature management facilities, fixed assets of non-profit enterprises, library funds and other objects used regardless of ownership.
Depreciation is calculated taking into account the initial cost of objects, time of use and accrual method.
The accrual methods in accounting are as follows: linear, the method of reduced balance and proportional write-off, calculation methodology based on the sum of the numbers of years of operation time.
For all methods, the key parameter of the calculation is the depreciation rate, which is a percentage of the total cost of the fixed capital of the enterprise or company, included in the cost indicators of the total manufactured and sold products. The accepted designation for this parameter is DR from the English words depreciation rate. In economic sources, synonym categories are also used - depreciation rate, depreciation rate , the concept - write-off rate is more rarely used.
When using the linear method, such indicators as initial cost, rate of deductions, current estimated cost are taken into account. For example, if an enterprise acquired a resource of 200 thousand rubles. and with a life of 5 years, the annual depreciation rate will be 20% (100% / 5 = 20%).
When applying the calculation using the reduced balance method, this indicator is determined in accordance with the residual value minus depreciation. based on the useful life. You can give an example: when acquiring an object for 200 thousand rubles. over the course of 5 years of use, the depreciation rate for the third year will be 4% of the difference between the residual value and the value of depreciation for the 2nd year.
When using the write-off method for the sum of years of use, the amount of deductions takes into account the initial cost and is calculated, as shown in the example. Suppose an enterprise acquired an object of 200 thousand rubles. with a useful life of 5 years. We calculate the sum of the numbers reflecting the operating time: 1 + 2 + ... = 15 years. This means that in the first year the depreciation rate will be 33.3% (5/15). Next year - 26.7% (4/15), in the third - 20% (3/15).
When applying the method of proportional write-offs, the annual amount of deductions is determined by the ratio of the volume of production and the initial cost.
With all the calculation methods used in accounting, the depreciation rate as an indicator acts as an important parameter and tool for planning the development strategy of a company or enterprise.