Non-current assets of the enterprise play an important role in the production cycle, they are associated with logistics processes, trade, the provision of services and the conduct of many types of work. This type of asset allows the organization to generate income, but for this it is necessary to carefully analyze the composition, structure, value of each object. Constant monitoring is carried out on the basis of accounting data, which must be reliable and correct. Basic postings to fixed assets are typical, but contingencies may arise during operation.
Fixed assets
The organization’s assets have a different turnover cycle, i.e., the process of transferring their value to the price of output. Non-current fixed assets are classified as low-liquid, they are characterized by the following indicators:
- High starting price.
- Participation in several production cycles while maintaining the initial physical form.
- Phased transfer of prices to the cost of production using depreciation payments.
Accounting entries for fixed assets should be drawn up correctly, taking into account the type of asset, its life, purpose of use. For accounting, active accounts 08, 01 and passive 02 are used for depreciation charges. Fixed assets are divided into the following groups: structures, machinery, computers, equipment, livestock, vehicles, landings (long-term), buildings, tools. Compiled by the accountant, the entry for fixed assets necessarily contains the total value. Moreover, the asset has several costs: initial, residual and recovery. All business operations (movements) of an asset are accompanied by a corresponding entry in the accounting registers, i.e. corresponding correspondence is compiled. The main non-current funds are reflected in the active part of the balance sheet, section No. 1.
Depreciation
Each, including being on conservation, an object of fixed assets has a deadline, which depends on the purpose, conditions of use and group of assets. In the process of functioning, each unit is subject to wear and tear, which can be moral (obsolescence) or physical (full use of a resource, understaffing, destruction). Depreciation of fixed assets (posting to 02 account) begins to be accrued from the moment it is registered on a monthly basis in equal (with a linear schedule) shares over the entire period of operation. It is calculated as a percentage of the initial (price + completion costs or revaluation data) value of the object, taking into account the period of operation. Depreciation is recorded in the passive account, No. 02, and is charged to the expenses of the unit in which the unit is used. Accrued depreciation of fixed assets, postings are reflected in the following entries in accounting registers: D t 20, 44, 25, 26, 29, 23, 97, 91; To t 02 depreciation of fixed assets calculated on the objects used mainly, auxiliary, additional production, leased. The depreciation amounts accumulated during the period of operation are subtracted from the initial cost and give the residual price at which the object can be sold, written off, dismantled. At the same time, posting to fixed assets to be disposed of: D t 02; To t No. 01 / subaccount.
Admission
Non-current production and general business assets are acquired at the expense of large investments, which may be own, borrowed, investment. The source of income may be:
- Acquisition from suppliers.
- Contribution of the founders.
- Royalty free (gift) transfer.
- Erection (construction).
- Acquisition under an exchange agreement.
Each transaction is accompanied by regulated documents of a unified form and the corresponding accounting record (posting) is made. For fixed assets requiring additional refinement, installation and preparation for operation, based on calculations and certificates, the initial cost is formed, which includes all relevant costs. The transfer of fixed assets, postings and relevant documents are executed in accordance with the contract, upon receipt of money to the supplier’s account or upon installation of the facility.
Purchase
In the process of acquiring an object of non-current assets, its value is reflected in account 08 until the moment of commissioning. In parallel, the debt to the supplier and tax liabilities arising from the transaction are reflected in the registers. When purchasing an asset without additional refinement and a one-time transfer to operation, the accounting department draws up the following correspondence:
- D t No. 08 / s; K t 76 or 60; the amount of debt to the counterparty and organizations that delivered, packaging;
- D t 19 / subaccount; K t 60, 76; the value of the VAT;
- D t No. 01 / subaccount; K t No. 08 / subaccount; the amount of the initial cost at which the object is registered and reflected in the balance sheet;
- D t 76, 60; K t 51, 71, 55, 52, 50; the debt was paid in cash, non-cash, from a special account or through an accountable (authorized) person.
Basic postings on fixed assets are carried out in parallel with filling out capitalization documents (inventory card, acceptance certificate).
Completion
Many objects of fixed assets (for various purposes) have not only high cost, but also dimensions that make it difficult to transport them and the process of preparing for work. In this case, all additional costs of completion are included in the amount of the initial cost of a unit of assets. At the same time, the process of their accumulation takes place on account 08 in correspondence with settlement accounts. Installation work, equipment and a preparatory cycle can be carried out by the buyer’s organization independently, by auxiliary workshops, in which case the corresponding costs will be reflected in the production accounts. This process will also increase the wage arrears of employees of the enterprise involved in it, and transfers to the respective funds (social insurance, pension). Receipt of fixed assets, postings:
- D t No. 08 / s .; Kt 76, 60 purchase;
- D t 19; Kt count No. 60 or 76 for the value of the VAT imposed;
- D t No. 08 / s; K t 23, 29, 25, 20 costs of installation and completion of the purchased facility;
- D t No. 08 / s .; Kt 70 (69, 68), 10 / subaccount, accrued salaries to employees, taxes, expenditures for the preparation of OPF;
- D t No. 08 / s .; K t 68; for work performed in the contract (own funds) VAT.
Or:
- D t No. 08 / s .; Kt count No. 76, 60 installation costs provided by third parties increase the price of the facility;
- D t No. 01 / subaccount; To t No. 08 / subaccount the object of non-current assets at initial cost is capitalized. Payment to suppliers is carried out at the expense of non-cash or cash, when finalizing on their own, expenses are included in the cost of manufactured products in proportion to a certain indicator.
Free transfer, contribution to the Criminal Code
Upon receipt of a certain unit of OPF from the founders of the company or by donation, it is necessary to evaluate the object. To determine the cost, it is better to involve an independent specialist, since if the 5-times minimum wage is exceeded, a gratuitous transfer may be invalidated. In both cases, the asset may require revision or installation, then typical operations are recorded in the following order:
1. Donation (receipt) of fixed assets, postings:
- D t No. 08 / s .; K t 98/2 estimated value of the object PF;
- D t No. 01 / subaccount; K t No. 08 / s .; capitalized capital asset. The cost of the asset registered includes all the costs of preparing for operation.
2. Non-current assets from the founders come as a contribution to the authorized (stock) fund of the enterprise. Their price at the initial stage is defined as the cost + work to bring the object. Receipt of fixed assets, postings:
- D t No. 08 / s .; K 75 taken from the founders;
- D t No. 08 / s .; Kt count No. 76, 60 installation, installation, completion by third parties;
- D t 19; K t 60 or 76; VAT;
- D t No. 01 / subaccount; To t No. 08 / subaccount posting of the asset. The process of bringing an asset to its working condition can be carried out by the organization’s own auxiliary services.
Retirement
The composition and structure of the objects of the main production assets should correspond to the production needs of the enterprise. When analyzing the capital productivity ratio, objects that are idle for a long time or are in a state of conservation are identified. An organization may sell, write off, dismantle such items of equipment, or transfer fixed assets under an exchange agreement. Postings in these cases should reflect the financial result from the movement of the asset. A prerequisite for all processes is the determination of the residual value of a unit of investment. For its calculation, the amount of depreciation accumulated over the period of operation is used, which is reflected in K t of account No. 02. The main entries for property, plant and equipment prepared for disposal involve the depreciation and closing of the account for a specific unit of equipment, transport, etc.
Implementation
The process of selling the main non-current asset is accompanied by filling in the relevant accounting registers. First of all, a contract is drawn up, which reflects the cost (agreed price) of the sold unit of the OPF. Next, the accounting department prepares an inventory card, on the basis of which the fixed assets are written off.
Postings should reflect the fact of disposal, the act of transfer (unified form) of the object is drawn up taking into account the contractual value. Realization (disposal) of fixed assets, postings:
- D t 76, 62, 79; Kt 91/1 billed to the buyer of the asset;
- D t No. 01 / subaccount of disposal; To t No. 01 / subaccount initial cost of the object is debited;
- D t 02 / analytical account; To t No. 01 / subaccount of disposal; depreciation of fixed assets, posting is compiled for each accounting unit separately;
- D t 91/2; To t No. 01 / subaccount of disposal; written off (determined) the residual value of the asset unit;
- D t 83; K t 84; revaluation (revaluation) of fixed assets is written off;
- D t 91/2; K t 23, 25, 29, 70, 69, 10; the cost of preparing the facility for sale;
- D t 91/2; K t 68 / subaccount; VAT;
- D t 51, 55, 50, 52 (for settlements in foreign currency); K t 62, 76; funds received from the buyer of the asset.
Broadcast
In the case of a gratuitous transfer of the asset to a subsidiary or by mutual agreement of the companies, the transactions are drawn up in the same way. The exception is the fact of invoicing and crediting funds from the buyer, since in this case there is no such party to the contract. The procedure for determining the value at the end of the operating period and write-off of depreciation is standard for all disposal operations of non-current assets. The inventory card of the object is closed, the corresponding analytical account is liquidated in the account.
Write-off
A non-current asset is worn out during operation, that is, it loses part of its technical characteristics or becomes obsolete. In this case, a unit of equipment or transport is difficult to implement, therefore, enterprises most often write off it from the balance sheet or send it for dismantling. When disassembling an object for a part, spare parts must be evaluated and capitalized as part of current assets (account 10 / subaccount). Bookkeeping draws up an act on the basis of which the write-off of the fixed asset is executed. Postings are reflected in the sequence:
- D t No. 01 / subaccount of disposal; To t No. 01 / subaccount; book (initial) value is written off;
- D t 02 / analytical account; To t No. 01 / subaccount of disposal; accrued depreciation is written off;
- D t 91/2; To t No. 01 / subaccount of disposal; by the residual value;
- D t 83; K t 84; revaluation
- D t 91/2; K t 26, 29, 70, 69, 10; dismantling costs;
- D t 12, 10 / subaccount; Kt 91/1; accounted for spare parts, consumables, consumables and spare parts obtained in the process of dismantling the unit OPF.
Write-off of a unit of production assets is carried out in case of its loss. This can happen due to the fault of the responsible person, as a result of natural disaster. If the guilty person is known, compensation for damage assessed by competent persons shall be made at his expense at the same time or in stages, during the agreed time period. In case of complete or partial destruction of the asset object as a result of insurmountable (force majeure) circumstances, the owner company can claim insurance payments if there is an agreement on damages. Bookkeeping using standard operations draws up the disposal of fixed assets. Postings that are made later depend on the source of compensation. With insurance compensation:
- D t 76 / subaccount; To t No. 01 / subaccount; reflects the value of the insured property;
- D t 55, 51, 52, 50; K t 76 / subaccount; insurance payments received;
- D t 99; Kt 76/1; uncompensated costs are written off. When attributing the loss to the guilty person, accounting records are drawn up in the respective registers:
- D t 94; To t No. 01 / subaccount; reflected shortage, damage to the object PF;
- D t 73 / subaccount; K t 94; costs are written off to the guilty person;
- D t 50, 70, 51; K t 73 / subaccount; reimbursement of expenses in cash, to a current account or repayment of debt at the expense of wages.
Automation
Non-current asset movement postings are typical. In the conditions of automation of all types of accounting due to the installation and configuration of appropriate software, the task of an accountant is greatly simplified. Workflow is reduced and analysis efficiency is increased. Data entry is performed by filling in the program a corresponding document, which makes it possible to automatically fill in all the interdependent accounting registers for a specific object. The processing time of acts, inventory cards, analytical transcripts is significantly reduced. The process of correspondence between accounts (accounting entries) is automated. Fixed assets, revolving funds, capital, loans are accounted for in accordance with the program settings, on the basis of input data and existing laws.