Tax legislation provides for depreciation in two main ways. When using them, the depreciation is calculated in order to reflect the amount of tax, which is determined in accordance with its norm and depending on the life of the object. In this case, the depreciation value is calculated independently for each object.
According to the Tax Code, the linear method of calculating depreciation is used by the taxpayer for such objects as buildings and structures. All these objects make up 8-10 groups. In relation to other objects, taxpayers have the right to use any method of calculating depreciation, however, it is necessary to observe the condition that the method of calculating depreciation cannot be changed during the period that provides for its calculation. For example, in the case of a linear, the depreciation value is calculated depending on the initial cost of the object, or the value of the replacement cost is applied when the object has been revalued. When using the non-linear method, depreciation is charged only on the amount of the residual value, moreover, it is necessary to observe the condition that the method of calculating depreciation in this case can be changed at a residual value of not more than 20% of the original.
In addition to these, there are also the following methods of depreciation. These are: - the method of reduced residue; - accelerated method; - a method of proportional write-off; - write-off method in accordance with the number of years of useful operation. These depreciation methods are also allowed for use by the tax legislation of the Russian Federation, but their use is advisable only in those cases for which they are actually developed. Let us consider in more detail these depreciation calculation methods.
When using the methodology of the reduced balance, the size of the annual amount of deductions is determined on the basis of the residual value of the object. For the calculation, the beginning of the reporting period and the value of the depreciation rate are taken . The formula has the following form: A = Compost x K x At / 100, in which: Compost is the residual value of the accrued object under consideration, K is the acceleration coefficient, and Na is the depreciation rate. A feature of this method is the fact that when it is applied, the initial cost will never be written off. The advantage is that this method can be written off at the maximum value of the cost of the object at the very beginning of its operation.
When using the method of proportional write-off by years of operation, the calculation formula looks like this: A = Sperv x Toast / T x (T = 1) / 2, where: Sperv is the initial cost of the accrued object, Toast is the period until the end of the useful life in years, T - the useful life. When applying this method during the current reporting period, depreciation charges every month in the same amount equal to 1/12 of the annual value.
When using the write-off method in proportion to the volume of production, the calculation formula takes the following form: A = C / B, where: A is the value of depreciation per unit of production, C is the initial cost of the object in question, is the estimated value of the output. The advantage and scope of this method is preferable if the wear is directly determined by the intensity of operation.
The applied depreciation methods also include an accelerated method in which there is a quick transfer of the book value of the object to costs. This method is used, as a rule, in the case when enterprises or organizations carry out mass technological re-equipment of production. Such a methodology helps to accelerate the process of improving enterprises, and in addition, reduces their income taxes.