Fixed assets represent a certain part of the property of the company, which is reused when releasing products, performing work or providing services. OS are also used in company management. The duration of their use is more than 12 months. Consider further what are fixed assets. OS examples will also be given in the article.
Kinds
Fixed assets include:
- Buildings and buildings.
- Power and work installations, equipment, machines.
- Computer Engineering.
- Regulating and measuring devices and devices.
- Vehicles.
- Tools, household supplies and equipment.
Fixed assets also include perennial plantations, pedigree and productive cattle and other funds.
Wear
Fixed assets include those objects that during the period of their use generate income for the enterprise or serve to achieve the goals of its activities. During operation, the OS are subject to wear. It can be moral or physical. The first involves the loss of value of objects due to the development of scientific and technical progress and an increase in labor productivity. With active work or under the influence of natural factors, physical wear and tear occurs .
Accounting
Everything related to funds should be taken to the enterprise at initial cost. It represents the aggregate of actual acquisition costs. The inventory object acts as a single OS accounting, including all its accessories and devices or a structurally isolated separate item. An enterprise has the right not more than once a year to carry out revaluation of fixed assets at replacement cost .
Depreciation
Redemption of the value of fixed assets is carried out by transferring it to work, products or the provision of services. When deducting depreciation amounts from the initial price for the entire period of operation, they receive the residual value. Today, calculations can be carried out in three ways:
- Linear. In this case, the annual depreciation amount is determined based on the initial price and rate calculated taking into account the useful life of the facility.
- Reduced balance. In this case, the residual rate at the beginning of the year and the depreciation rate calculated taking into account the useful life of the item are used.
- Write off by the sum of the numbers of years in accordance with the initial price and annual ratio. The numerator contains the number of years remaining until the end of the operating period. The denominator includes the sum of the number of years over the entire service life.
Object recovery
It can be carried out by simple and expanded reproduction. The first is a major overhaul and replacement of the OS. Enhanced reproduction is carried out in the form of new construction, modernization, technical re-equipment, reconstruction. With simple recovery, the OS does not change its quantitative and qualitative characteristics. In the case of expanded reproduction, fixed assets are filled with new content. The cost of reconstruction and modernization may increase the initial price of the OS.
Retirement
It can occur in many ways:
- Due to depreciation (physical / moral) or termination of use as intended.
- Upon sale.
- With a free transfer.
- Due to liquidation in emergency cases.
- When transferring to the authorized capital of other enterprises in the form of a contribution.
The value of objects that are disposed of or not used continuously should be deducted from the balance sheet.
Ratios of fixed assets
To control the movement of the OS, certain indicators are used. Among them:
- Update rate. It represents the value of objects newly introduced by the enterprise during a given period, divided by the price of fixed assets available at its completion.
- Coefficient of income. It is calculated as the ratio of the value of received OS to the enterprise to the price of funds at the end of the period.
- Retirement rate. It represents the value of funds debited from the enterprise during the year divided by the price of fixed assets available at the beginning of the period.
- Growth rate. It is calculated as the amount of fixed assets growth divided by the value of funds by the beginning of the year.
- The intensity of the update. He is found by dividing the value of retired fixed assets during the period by the price of funds received.
- Liquidation ratio. It is calculated as the ratio of disposed funds during the year to the value of fixed assets at the beginning of the period.
- Replacement rate. It is equal to the value of liquidated funds divided by the price of new OSs received.
PBU
In accordance with the Accounting Rules, fixed assets include assets, if they:
- They are used in the production of goods, the provision of services, performance of work or for managerial purposes.
- Operated for more than a year.
- They will be profitable to the enterprise in the future.
- Will not be implemented soon.
Fixed assets - capital for measures to radically improve the land (irrigation, drainage and other land reclamation works), investments in perennial crops are included in the account in the amount of expenses related to the areas taken into operation, regardless of the completion of the whole complex of actions. If an object consists of several parts, the service life of which is different, it is necessary to take each of them separately. Land owned by the enterprise and natural resources also act as fixed assets (examples: a reservoir, minerals, etc.).
Fixed asset transactions
OS are accepted for accounting during their construction, acquisition, manufacture, making contributions to the account of the founders, receipt under the terms of the gift agreement and other income. The value of funds is not subject to change, with the exception of cases provided for by law and PBU 6/01. If the company decides to re-evaluate the asset, then it must be done annually. At the same time, the initial price of funds increases. Postings to fixed assets in such cases are as follows:
- Db sc 01 cd 83;
- Db sc 83 cd 02.
In revaluation, thus, simultaneously with an increase in the initial price, the amount of depreciation charges increases. According to the results of markdowns, respectively, the cost of the operating system decreases:
Depreciation is also reduced:
In case of insufficient additional capital to cover the markdowns, the difference in excess of the amount of previous revaluations is subject to write-off at the expense of own income. She refers to the account. 84:
- Db sc 84 cd. Cf. 01;
- Db sc 02 cd 84.
Thus, when revaluing fixed assets on account 01, the replacement cost of the funds will be taken into account. The decrease / increase in the initial price is included in the additional capital of the enterprise.
Gratuitous receipt
In this case, fixed assets should be taken into account at their market value at the date of capitalization. Such a requirement is present in paragraph 3.4 of PBU 6/01. Delivery costs of funds received free of charge are accounted for as capital costs and are included by the recipient enterprise in the increase in the initial price of the objects. These costs are reflected in the relevant capital investment accounts in correspondence with the settlement items. When a company acquires vehicles for free, no tax is charged on them. Input of accepted objects is carried out in the usual manner. Deb. 01 and credited to the account. 08. According to the law, the host company must pay income tax (24%, excluding the TC). At the same time, the account is debited. 99 and credited to the account. 68. In the course of depreciation, profit for the coming periods should be included in non-operating income of part of fixed assets received free of charge.