At any enterprise, in the process of work, fixed assets are used: buildings, production workshops, structures for various purposes, power lines, flyovers, equipment, machine tools, automobile and air transport, as well as railway locomotives and wagons, i.e. property that is a necessary means of labor when manufacturing products, performing various kinds of work or providing services.
The service life of such facilities is more than one year. Without them, it is impossible to carry out production activities, and the role of these funds cannot be overestimated. The article will discuss precisely these assets and which methods of calculating depreciation are used today. In addition, we present an example of calculating depreciation in a linear way and consider all the details of the calculations performed, depending on the occurring production situations.
Depreciation: definition
Property, and especially fixed assets (OS), participating in the production process, always wear out, that is, they lose their initial value. Therefore, it is necessary to calculate the amount of depreciation, reducing the cost of the object. Legislation has developed a coherent system for classifying various property units according to individual characteristics, such as useful lives (STIs), i.e., the time during which the object generates revenue for the company. For example, machine tools and equipment are depreciated faster than a building or other capital structure. Based on the time of productive use of the facility, tough deadlines have been developed for each group of fixed assets, at the end of which the value of the property is fully debited. The repayment of the value of the property is called depreciation. Fixed assets are classified by technical characteristics, forming groups, for example, buildings and structures, power machines and equipment, etc.
The existing classifier of fixed assets delimits 10 groups according to the principle of the duration of SPI: the first groups include objects with less useful time, the last - with longer.
Which objects are depreciated
Legislators categorize depreciable property as objects whose IPI is more than 12 months and the cost of acquisition is more than 40 thousand rubles.
Not all OS objects can be considered depreciable. The leased fixed assets, land, nature management, road and forestry facilities, water resources or perennial plantings are not depreciated.
Initial and residual value of the OS
Let us return to the objects of property for which depreciation is necessary. So, knowing the initial price of the object and the value of accrued depreciation, the accountant receives the value of the object at the time of calculation. It is called residual.
The accountant should make such a calculation on a monthly basis - the property tax of the enterprise directly depends on this indicator, the illiterate calculation of which affects the company's profit and creates problems in relations with the tax inspectorate. Therefore, it is so important to properly calculate depreciation for each object. There are linear and non-linear methods for calculating depreciation. Companies and organizations are given the right to independently choose the method of calculating depreciation of property. In the company's accounting policy, the application of the depreciation calculation method is mandatory. The law establishes the right to switch from one depreciation method to another only every five years.
Features of the application of the linear method
This method is characterized by depreciation on each object. A linear calculation of depreciation is the most common. It is considered the most convenient not only among lawmakers, but also among accountants.
Its essence is to calculate the amount of depreciation from the initial cost of the object, multiplied by the depreciation rate. Since this article is devoted to a linear method of calculating depreciation, we will consider it in more detail.
Depreciation: linear calculation formula
Note that, regardless of the method of depreciation established by the company, only the linear depreciation method is applied to objects belonging to 8-10 groups of fixed assets according to the Russian classifier. The basis of the calculation on a linear basis is the following formula: the product of the initial or replacement (if revalued) cost and the depreciation rate established for this object, calculated as follows:
H = 1 / n * 100%, where n is the STI in months or years.
Linear depreciation calculation example
The company purchased and commissioned an object worth 180,000 rubles. SPI according to the appropriate classifier OS group - 5 years.
Option 1: Calculate the annual rate of depreciation :
H = 100% / 5 years = 20%, i.e. 20% of the cost should be debited every year.
In the amount of 180,000 * 20/100 = 36,000 rubles, that is, over the year the price of the object decreases by 36 thousand rubles.
The monthly norm is 36000/12 = 3000 rubles.
Option 2: monthly depreciation, calculation formula:
N = 100% / 60 months. = 1,6667
Over the month, the amount of depreciation amounted to 180,000 * 1,6667 = 3,000 rubles. So linear depreciation is charged.
Features of the calculation
They begin to calculate depreciation from the beginning of the month following the month of putting the object into the production process. For example, even if the property is acquired, and commissioning is dated March 1, depreciation should be calculated from April 1. The same rules apply to objects received free of charge.
According to the same principle, depreciation is stopped: from the 1st of the month following the month in which the amount of depreciation is equal to the initial cost of the object. There are other reasons for the termination of depreciation, for example, during the liquidation, retirement or conservation of the object in connection with the need. Upon exiting a mothballed state (by a written order of the company management), OS depreciation is also charged from the beginning of the month following the one in which the facility is resumed operation.
Suspension of facility operation: how to calculate depreciation
Let us recall an example of calculating depreciation in a linear way and supplement it: the object was put into operation on September 25th. So charge depreciation in the amount of 3000 rubles. the accountant will start in October.
Consider the situation when the main asset is mothballed for a certain period of time. We continue the previous example with the new operating conditions of the facility. Due to unforeseen circumstances, the head of the company decided to suspend the participation of this object in the production process, and he issues an order to withdraw the object from the work process for 6 months, for example, from May 1 to October 31. In this case, depreciation of equipment is suspended. The calculation is as follows: calculate depreciation for April and take a break for 6 months. From November 1, depreciation is renewed. It is important to remember that depreciation is made only during the operation of the object, because only then it wears out. If the operating system is idle, depreciation is unlawful, and such situations should be documented - it is from these considerations that they preserve property that is not involved in the activity, and the depreciation of equipment, the calculation of which is presented in the article, is legal.
By the way, the SPI of an object is extended for the period of its inactivity. That is, the equipment put into operation on September 25, 2010 should be fully depreciated by October 2015. But since the object was mothballed, the time of its use is extended by the period of inactivity. In our case, SPI will end in April 2016, i.e., the depreciation of the fixed assets will continue, and the last depreciation will be done in April 2016.
These are the basic rules for accrual. We hope that the example of calculating depreciation in a linear way did not raise questions.