Account 08.08 accounting for what is it intended?

Non-current assets - the main property of the enterprise, which will subsequently be distributed to other accounting accounts. Here, all the data is collected not only about the cost of fixed assets and intangible assets, but also the costs of their acquisition. Account 08 08 is intended just for such purposes. Let us consider in detail its characteristics and significance in the enterprise asset accounting system .

Composition of non-current assets

The property rights of this group include fixed assets and intangible assets, which are planned to be used at the enterprise for more than a year. It consists of:

• OS owned by the enterprise and participating in the production process. Moreover, for a long time the property does not lose its natural-material form.
• Long-term investments and in the form of capital.
• Any form of intangible assets.
• Other noncurrent assets.

The property of the enterprise, which belongs to this category of funds, occupies a leading place in the activity of the enterprise, especially in production cycles. During the period of its use, the value is gradually transferred to the finished product in the form of depreciation.

Distinguish between the active and passive part of non-current assets. The first category includes the most mobile and dynamic means. For example, industrial equipment, office machines. The second group includes real estate objects: constructions and buildings that create the initial conditions for the work of the company's employees.

Account 08 08 and its purpose

We figured out the concept of non-current assets, but it remains unclear: why do we need a separate account for them if 01 and 04 have already been created? To understand the essence of the issue, we recall the rules for admission to the accounting OS and intangible assets.

According to the requirements of PBU, the accountant must reflect fixed assets and intangible assets on the account at initial cost, which includes all the actual costs of their acquisition. It often happens that information on all amounts is not received immediately. Here, the need arises to open an account 08, which will collect data on items of expenses for the acquisition of property. As soon as the accounting department takes into account all the amounts and the property is ready for commissioning, the information can be written off to the main account 01 or 04.

Account structure

08 accounting account - active, because it collects information about the funds of the enterprise. All related property acquisition costs are shown in debit. When debiting, the amounts shown in the credit account. At the end of the reporting month, a debit balance may form. As a rule, these are the sums of expenses for construction in progress and fixed assets that were not put into operation. In the absence of a balance, the account is closed.

The debit balance, if any, should be reflected in the financial statements. Account 08 in the balance sheet is included in line 1190, which characterizes the value of other non-current assets.

Analytical accounting

To combine expenses of a similar nature into groups and systematize accounting, additionally open sub-accounts of the first level, which reflect information about the costs of:

• 08.1 - acquisition of land;
• 08.2 - purchase of natural resources;
• 08.3 - construction of OS facilities;
• 08.4 - purchase of individual OS by categories;
• 08.5 - acquisition of intangible assets;
• 08.6 - transfer of cattle from one herd to another;
• 08.7 - the acquisition of adult livestock;
• 08.8 - carrying out scientific research, conducting experiments, the results of which will be used in the future at the enterprise.

If necessary, other analytical accounts of a similar nature may be opened.

Non-current assets

Most often, an enterprise acquires property through a contract of sale. In this case, the algorithm for taking it into account is understandable: you need to collect all the costs on account 08, and then write them off to the main accounts during commissioning. But there are other ways in which assets pass into the ownership of the enterprise. Basically, this is the result of barter or a contribution to the initial capital, and free receipts are also frequent.

For each method of obtaining property, a method for registering 08 accounts and a method for calculating the initial cost are determined. Upon completion of the deed of gift, an appropriate contract is drawn up, in which the market value of the transferred objects is indicated. This will be the amount that should be reflected by posting Dt 08 Kt 98 “Gratuitous receipts”.

Contribution to capital and transfer of goods for the needs of the enterprise

If one of the founders of the enterprise makes a contribution to the authorized capital in the form of fixed assets or intangible assets, they should be taken into account based on the following rules:

1. Valuation of incoming assets should be done in coordination with the participants of the PA or JSC. At the same time, the value of the property should not exceed the market value.
2. After determining the amount of the initial cost, account assignment Dt 08 Kt 75.

Thus, to the account on account 08 fixed assets from the founders were accepted. Information will be stored in debit until the property is accepted for use.

Goods or finished products transferred within the enterprise for the fulfillment of its needs are taken into account at actual cost, the amount of which can be found on accounts 41 or 43. The transaction looks like this: Dt 08 Kt 43 (41).

Barter agreement

The registration of property received after barter differs depending on the conditions of its holding. So, if both parties recognize objects of exchange of equal value, then they do not assume any additional obligations. Surcharge is not required, but what amount should be written to account 08 08 upon receipt of the asset? In this case, the initial price is the market value of the property retired for the exchange. If it is impossible to determine, use the indicator of the possible purchase price of the incoming property.

After agreeing on the terms of the barter transaction between enterprises, the acquired assets cannot yet be considered their property. The ownership right passes after the fulfillment of obligations by each of the counterparties. Until this moment, the amounts are taken into account on the off-balance account 002. After fulfilling all the clauses of the contract and obtaining property rights, the accountant writes off the amounts in CT 002.

Further registration of the arrival is carried out in accordance with the usual procedure for receiving OS or intangible assets:

1. Dt 08 Kt 60 - the amount of incoming OS is taken into account (the amount without VAT).
2. Dt 19 Kt 60 - reflected VAT on the acquired property.
3. Dt 01 Kt 08 - the object was put into operation and accepted for accounting.

Account 08 08: typical postings

Having studied the features of determining the initial cost of assets and their registration, we consider the main account assignments:

08 the account of the accounting for the loan reflects the amount of write-off of property when:

• putting it into operation;
• losses due to emergency;
• deficiencies identified after the inventory;
• sale or partial liquidation.

Indicators of non-current assets mainly characterize the activities of the enterprise. From the accuracy of the calculation of the initial cost of property depends on the further organization of accounting of fixed assets and intangible assets. Account 08 is just created to collect the necessary information about incoming assets in order to fully reflect all types of expenses for their acquisition.