How to write off fixed assets from the balance sheet? Instruction, wiring

Fixed assets of the enterprise - everything that has been used in the process of economic activity for more than one year - are inevitably subject to wear and tear. The mechanisms of the equipment are stuck, the technologies become obsolete, and the computer in accounting has long exceeded 10 years - all this leads to the need to update the property. How to write off fixed assets from the balance sheet? What postings do you need to make? Answers will be open to the reader in the article.

Characteristics of fixed assets

To achieve a maximum understanding of what is happening, we recall the concept of fixed assets and the properties that they possess. So, fixed assets are non-current assets of an enterprise that have a material form and retain it during operation. Such objects are designed for long-term use.

While they are beneficial, the OS is somehow involved in the business operations of the company. So, their cost should be included in the cost of finished products. How does this happen? Of course, in parts. Equal shares in the category of goods in the process of creation of which the main asset is used. What does this part of the cost attributable to equipment or facilities look like? This is depreciation. Each month, the calculated amount is accumulated on account 02, which is then written off to the cost of production.

The reasons for the disposal of fixed assets

The first thing that comes to mind when one has to talk about the liquidation of property is its moral and material obsolescence, that is, depreciation in all respects. In the normal course of business, this usually happens. The equipment has served its due date, depreciation deductions have been paid in full - the object can be written off. And in good condition, upgrade or sell for parts.

If you think more broadly and consider all the possible scenarios that may occur at the enterprise, it turns out that there are many more reasons for writing off fixed assets:

• sale;
• exchange for other property in accordance with an exchange agreement;
• donation;
• damage due to emergency;
• premature wear;
• theft of property.

In each specific situation, there will be a need to draw up relevant documents confirming the reason for the disposal of fixed assets and record the completion of a business transaction in the accounts.

General instruction

How to write off fixed assets from the balance sheet of the enterprise, that is, to document the fact of decommissioning? In whose authority do you decide whether the property is suitable for use or is it time to send it to rest? An accounting policy comes to the rescue. It should contain clear instructions on how to write off fixed assets from the balance sheet. In general, a commission is created that is authorized to consider the suitability of the property, the appropriateness of its use and liquidation. It consists of the head of the enterprise, the accountant and the head of the department in which this OS is installed. In some cases, independent experts may be invited to fully evaluate the technical characteristics of the facility.

The decision of the commission is documented. If the liquidation of the property is approved, decommissioning is carried out and the corresponding entries are made in accounting.

Documentation

After the commission inspects the facility and establishes the reasons for the need for decommissioning, the data obtained is recorded in the act of decommissioning the asset. The preparation of this document is a prerequisite for the disposal of property from the balance sheet of the enterprise. Ministry of Finance of the Russian Federation developed unified forms of acts:

• OS-4 - for fixed assets in the amount of 1 pc .;
• OS-4a - for organization transport;
• OS-4b - for several property items.

The document is filled in two copies, one of which is intended for the accountant, and the second for the person financially responsible for this property. Be sure to indicate the reason for writing off the OS. If the liquidation occurs through someone else's fault, employees (other individuals) must be indicated in the act.

It also includes all available information about the object: the date of registration, commissioning, the amount of the initial and residual value, accumulated depreciation, repairs (if any) and other data directly related to the use of property to be written off .

How to write off fixed assets from the balance sheet: fill out the act

The form of the OS-4 act, confirming the liquidation of the property and giving the full right to carry it out, consists of three tables. The first of them is filled out on the basis of the data of the act of acceptance of the fixed asset. Here, the characteristics of the asset are recorded, including value, the amount of accumulated depreciation and the total useful life.

The second table describes the individual characteristics of the property, which were usually previously recorded in the act of admission. The third part is devoted to the costs associated with the disposal of fixed assets, as well as the benefits that arise in the case of the sale of residual material or spare parts. Summarizes the decommissioning of the facility, which is then written off to the financial results.

How to write off fixed assets at the simplified tax system?

The simplified tax regime in many ways distinguishes accounting from generally accepted standards. Regulates the procedure for writing off property from the balance of small business entities - the Tax Code of the Russian Federation (Article 346.16). According to the Code, upon disposal of fixed assets, the use of which in the future is not possible, their value is not fully included in the tax base. The amount remaining on the balance sheet during the liquidation of non-current assets is not taken into account for tax purposes.

If the disposal of fixed assets occurs earlier than the due date, it is necessary to recalculate the tax base. In case of write-off due to moral or physical depreciation, this item is not performed by small businesses.

Depreciation due to depreciation

How to write off amortized fixed assets from the balance sheet? This is perhaps the easiest case for an accountant. If the period of the estimated useful use completely coincided with the actual one, then the residual value was equal to zero and after drawing up the act of write-off, the object ceases to be listed in the assets of the enterprise.

When moral or physical depreciation occurs earlier than planned, it is necessary to make calculations for which data on:

• initial cost of the object (purchase price + installation + delivery);
• accumulated depreciation for the worked period (credit of the corresponding subaccount 02);
• residual value equal to the difference between historical cost and accumulated depreciation.

The last value is written off from account 01. The final result of the liquidation of the property is attributed to the financial result.

The sequence of transactions characterizing the write-off from the balance of fixed assets that have become unusable due to wear and tear can be seen in the table:

Compiled postings fully show how to write off fixed assets from the balance sheet. In the case of formation of a positive liquidation value, its value shall be charged to account 91.1.

Property sale

No one prohibits an enterprise from selling assets legally. To collect information on expenses and income that led the process of selling property to another individual or legal entity, account 91 is used . The debit accumulates the amount of expenses, the credit - revenue.

The write-off from the balance of fixed assets in case of sale in addition to the act of write-off and the contract of sale is accompanied by the following transactions:

• Dt 01 “Departure” Kt 01.1 - the amount of the initial value of the property.
• Dt 02 Kt 01 “Retirement” - the amount of accumulated depreciation.
• Dt 91.2 Kt 01 “Retirement” - the amount of the residual value of the asset.
• Dt 62 Kt 91.1 - reflects the amount of revenue from the sale of property.
• Dt 91.2 Kt 68.2 - VAT is charged on the implemented OS.

As you can see from the example, most transactions coincide with the algorithm for writing off property during wear.

Contribution to the authorized capital of another company

How to write off the balance of fixed assets contributed by a share contribution? For such purposes, an account 58 is provided. Investing in the authorized capital of another organization is often a profitable way for an entrepreneur. Postings are made as follows:

• Dt 01 “Departure” Kt 01.1 - the amount of the initial value of the property.
• Dt 02 Kt 01 “Retirement” - the amount of accumulated depreciation.
• Dt 91.2 Kt 01 “Retirement” - the amount of the residual value of the asset.
• Dt 58 Kt 01 - reflects the amount of the contribution to the authorized capital of another company.

It is worth noting that mutual contributions cannot be attributed to sales, and therefore VAT is not charged on the deposit amount.

Royalty Free Transfer

The organization is free to dispose of the property at its discretion. The main thing is that the actions taken comply with the established legislative acts. When donating property, how to write off fixed assets from the balance sheet? Postings begin all with the same actions: deduction of initial cost and accumulated depreciation. Then the residual value is written off to “Other expenses”. The account also collects other costs for the free transfer of the object. VAT is also calculated based on the current market value of the property.

What is the difference between accounting for a deed of gift from a sale? In the first case, income cannot be generated in any way, only costs. With the implementation of the same company has a chance to earn income and profit, or at least cover costs. The financial result (loss) from the donation of assets is written off by the posting Dt 99 Kt 91.9.

Partial liquidation of property

It is not possible to write off the main asset from the balance completely. The method is often used for real estate for the purpose of modernization, redevelopment or use for other purposes. If we are talking about structures and buildings, then the part unsuitable for operation can be demolished when the main part remains in place.

It turns out that in fact the fixed asset remains in the assets of the enterprise, but its value changes. In this regard, there is a need to reassess the property, as well as the recalculation of depreciation. The amounts of expenses and income from partial liquidation are reflected in account 91.

How to write off fixed assets from the balance sheet correctly? To do this, subtract the initial depreciation amount from the current value and get the balance, which is then reflected in account 91 of the accounting.