Depreciation of fixed assets where it is on the balance sheet. We reflect fixed assets in the balance sheet

Depreciation of fixed assets on the balance sheet
Here is the formula for line 1150 “Fixed assets”:

Example of calculating the balance line “Fixed assets”

The balance sheet of Rost LLC includes a fixed asset - a computer. Its initial cost is 45,000 rubles. The company put the facility into operation in December 2014. This is reflected by the wiring:

DEBIT 01 CREDIT 08

— 45,000 rub. — the fixed asset has been registered and put into operation.

On January 1, 2015, the accountant began calculating depreciation. The useful life of a computer is 3 years. The depreciation amount is calculated as follows:

15,000 rub. [(1: 3 years × 100%) × 45,000 rub.] - annual depreciation amount;
1250 rub. (RUB 15,000: 12 months) - monthly depreciation amount.

In total, every month during 2015, the accountant reflected the calculation of depreciation on the computer by posting:

DEBIT 26 CREDIT 02

— 1250 rub. - depreciation has been calculated.

Accordingly, for 2015, depreciation amounted to 15,000 rubles. (RUB 1,250 × 12 months).

When filling out the balance sheet for 2015, the accountant will reflect in line 1150 “Fixed assets” the amount of 30,000 rubles. (45,000 rubles - 15,000 rubles).

The essence of depreciation

Note 1

The economic meaning of depreciation is that the cost of property acquired by a business entity is included in costs not as a lump sum, but in parts in accordance with one of the selected algorithms for its calculation.

For example, Shafran LLC purchased technological equipment in January of this year. In January, the accountant will take this equipment into account according to the drawn up acceptance certificate. And from February it will begin to include the costs of its acquisition in parts.

The amount of depreciation is determined by such indicators as:

calculation method;
useful life (USI) of an object - the time when the organization intends to use this property in its activities.

In Russian accounting practice, the calculation of depreciation on the assets of a business entity is an obligation enshrined in legislative acts in the accounting field. The procedure for calculating depreciation and its further attribution to the costs of an economic entity, as well as significant aspects of the regulatory regulation of its accounting process are disclosed in the following official documents:

“Accounting for fixed assets” (PBU 6/01);
“Accounting for intangible assets” (PBU 14/2007).

Next, we will consider in more detail the main aspects of accounting for depreciation of fixed assets and intangible assets.

Depreciation of fixed assets

The accounting policy of a business entity must necessarily fix the method of calculating depreciation used by it, choosing one of those named in this standard. Figure 1 gives a visual representation of possible options for calculating depreciation amounts in relation to fixed assets. Also in the presented figure you can see the formulas for the calculation.

In accordance with the principles of continuity and comparability, the calculation of depreciation of an organization's property is carried out using one method from one financial year to another. For the first time, depreciation on an object related to depreciable property is accrued in the next month after it is accepted for accounting. Depreciation must be calculated over the entire time period while the asset is in use and allows the organization to derive a positive economic effect from its operation. The cost of an asset that is subject to transfer of its value into expenses in parts over a certain period of time must be fully depreciated, except in cases where it is disposed of before the end of this period.

If certain conditions are met by a business entity, depreciation can be calculated using simplified methods, for example, an organization can write off the depreciation amount once (at the end of the financial year) by making one accounting entry. In relation to production or household equipment, it is also possible to use a simplified accounting option in the form of a one-time attribution of their cost to the expense accounts provided for this.

The chart of accounts in the Russian Federation provides for a special account for accounting for depreciation of fixed assets with code 02 and the same name - “Depreciation of fixed assets”

Example 1

Shafran LLC has assets on its balance sheet that are subject to depreciation: equipment of the production workshop (main production). On January 31, 2017, the accountant, when performing the month-end closing procedure, accrued depreciation of this property in the amount of 17,000 rubles. In the accounting program you can see the following posting:

Debit 20 Credit 02 in the amount of 17,000 rubles.

Amortization of intangible assets

Note 2

The main internal company document, which sets out the organization’s policy regarding the accounting of intangible assets, must prescribe an algorithm for calculating depreciation.

Figure 2 clearly shows all legally approved methods for calculating depreciation of property accounted for as intangible assets. The figure also shows that Russian accounting standards provide for depreciation of intangible assets only if the organization can reliably indicate until what point in the foreseeable future this asset can be used and have a positive economic effect from this.

To account for the depreciation of intangible assets, account 04 “Depreciation of intangible assets” of the Russian chart of accounts is intended. Depreciation on intangible assets is most often charged to general production, general business or selling expenses.

Example 2

Shafran LLC accrued depreciation on the trademark in the amount of 10,000 rubles. The accountant must reflect this fact of economic life on the basis of the calculation (accountant’s certificate):

Debit 26 Credit 05 in the amount of 10,000 rubles.

Reflection of depreciation in the balance sheet

In Russian accounting rules, accounts intended to account for depreciation of assets can be characterized as regulatory. Such accounts are intended to adjust certain balance sheet items downward. In this regard, domestic accounting practice in the process of forming a balance sheet does not provide for the reflection of depreciation of property assets of a business entity in a separate column.

Example 3

The residual value of fixed assets of Shafran LLC at the beginning of the year amounted to 2,000 thousand rubles. For the reporting year, depreciation was accrued in the amount of 200 thousand rubles. The movement of fixed assets during the reporting period was not recorded. In the balance sheet, in the line “Fixed assets”, it is necessary to reflect the residual value of fixed assets as of December 31 in the amount of 1,800 (2,000 – 200) thousand rubles.

In the section on the question Accounting. In which balance sheet item should you write: Depreciation of funds???? given by the author I-beam The best answer is: The depreciation amount is not reflected in the balance sheet. It only reduces the value of non-current assets (fixed assets and intangible assets). Thus. the balance sheet reflects the residual value of fixed assets and intangible assets.

Answer from Stretch[guru]
Group of articles “Fixed assets” This group of articles indicates the residual value of fixed assets that are in operation, under reconstruction, modernization or in stock. According to paragraph 4 of PBU 6/01 “Accounting for fixed assets”, approved by order of the Ministry of Finance of Russia dated March 30, 2001 Year No. 26, fixed assets include assets that: are used in production activities; last more than 12 months; will generate income for the organization in the future; the organization does not intend to sell. According to paragraph 17 of PBU 6/01, depreciation of fixed assets can be calculated in one of the following ways: linear; reducing balance; write-off of cost based on the sum of the numbers of years of useful life; write-off of cost in proportion to the volume of production. The group of articles “Fixed Assets” is filled in as follows. From the debit balance of account 01 “Fixed Assets”, you need to subtract the credit balance of account 02 “Depreciation of fixed assets” and indicate the result in line 120 of the Balance Sheet. If an organization rents out part of its property, then the depreciation of this property is taken into account in a separate subaccount “Depreciation of property provided for temporary use” of account 02. The balance of this subaccount does not need to be subtracted from the debit balance of account 01. Then information about fixed assets is specified on separate lines Line 121 reflects the value of land plots and environmental management facilities. Line 122 indicates the residual value of buildings, machinery and equipment.

Depreciation accrued on objects must be reflected in the financial statements and recorded in the 1C program. As for reporting, it is displayed indirectly, and in the 1C accounting program several special documents are used to reflect it.

What is depreciation on the balance sheet?

Depreciation is deductions made by an organization to pay off the cost of fixed assets or intangible assets, that is, their original cost is gradually reduced, first to the residual value, and then brought to zero. Depreciation charges are necessarily reflected in the appropriate accounts in accounting and tax accounting.

As for financial (accounting) statements, in this case depreciation charges are not reflected directly on any line - there is no separate column for them. Depreciation has only an indirect effect on value, and therefore it is reflected in financial statements only indirectly.

This video will explain what depreciation is on the balance sheet:

In financial statements

As for Form No. 1 of the “Balance Sheet” reporting, the corresponding lines are used to reflect the value of fixed assets or intangible objects - 1150 for fixed assets, and 1110 for intangible assets.

Let us note the main thing: according to PBU 4/99 “Accounting statements of an organization”, all indicators in these documents must be reflected in a net assessment. Accordingly, the cost of fixed assets or intangible assets is indicated on the lines not as the original value, but minus depreciation, that is, the residual value.

As for form No. 2 of the financial statements, it also indirectly displays depreciation charges.

To reflect the cost of products, works and services, lines 2120, 2210 or 2350 are used, depending on the activity in which fixed assets or intangible assets are used.

Depreciation is a component of the amounts reflected on these lines, that is, it is not separately allocated, but is summed up with other cost indicators.

Reporting that reflects indicators in a net assessment is called net reporting, for example, a net balance sheet. In other words, indicators are exempt from some indirect amounts that have a direct impact on them in accounting.

In accounting

Two accounts are used to account for depreciation:

02 - for fixed assets and
05 - for intangible assets

And at the same time, the accrued amounts are displayed on their credit in correspondence with the debit of accounts that reflect expenses in business activities (accounts 20, 23, 25, 26, 29, 44). Then the amounts accumulated on the loan are written off through their debit to the credit of accounts 01 for fixed assets and 04 for intangible assets.

The amounts of depreciation accumulated on accounts 02 and 05 for the entire period of useful operation of the objects must completely coincide with their original cost, that is, it must be fully repaid upon the expiration of the period of useful operation.

Admission

In the 1C accounting program, the calculation of depreciation amounts is directly related to fixed assets or intangible assets, and therefore they should first be entered into accounting records. For this purpose, special documents “Receipt of fixed assets” or “Receipt of intangible assets” are used. The following basic details are filled in:

number and date of the generated document;
the name of the supplier of the object, as well as the number and date of the contract on the basis of which the acquisition was made;
number and date of documents related to the receipt of the object;
the warehouse where the object will be listed;
name of the fixed asset or intangible asset;
number of received objects, price per unit, total cost of receipt without VAT, amount of VAT, total cost of receipt with VAT.

Invoice received

After creating this document, it is necessary to generate the “Invoice received” document, which displays the number and date of the incoming primary document, the name of the supplier, the number and date of the contract, the amount of receipt, including the amount of VAT.

Based on the entered invoice, accounts payable are formed, that is, the organization must pay the supplier for its purchase if it has not done so earlier.

You must click the “Create based on” button and select the “Payment order” item, in which the fields associated with the recipient of funds (name of the supplier), his details, contract number and the direct purpose of the payment are filled in.

Count 02 is described in detail in this video:

Acceptance for registration

After the documents are generated, that is, the direct receipt of fixed assets or intangible assets to the enterprise is reflected, it is necessary to accept them for accounting, that is, put them into operation or direct use. A document “Acceptance for accounting of fixed assets” is created, which is drawn up for both fixed assets and intangible assets.

The most important details in this document will be the specific location of the object in the enterprise and the financially responsible person who will be in charge of the object being taken into account. In this case, the inventory number is assigned to the object automatically, but if necessary, it can be changed, although this is undesirable so that the numbering of the objects is not violated in the future.

When adding an object to this document, a new form will be opened to be filled out, which should contain information about the depreciation charge.

Here it is necessary to note which depreciation group the object belongs to, depending on its useful life.

The document is closed and saved, and then in the document “Acceptance for accounting of fixed assets” the tab regarding accounting is filled in. It must reflect the following parameters:

the account in which depreciation charges will be reflected;
the method that will be used to calculate depreciation;
method of reflecting depreciation expenses;
useful life of the object in the number of months.

The same items must be filled out in the tab regarding tax accounting, since, as you know, depreciation is calculated both in accounting and tax accounting.

Regular operation

All of these documents were generated and filled out in order to prepare for the calculation of depreciation, and the calculation procedure itself is formed at the close of each month with the “Routine operation” document.

When selected, a new document for calculating depreciation will appear, in which you must fill in the month of accrual, and then post and save.

It is on the basis of this document that entries are generated for accounts 02 and 05 related to the calculation of depreciation on objects.

After completing this document, you can view the register of depreciation charges, which is called “Certificate-calculation of depreciation.”

When selecting a period for displaying data, the register will list all objects for which depreciation was accrued for the specified period, reflecting their inventory numbers, date of commissioning, initial and residual value, initial and remaining useful life in months and the direct amount of accrued depreciation for the period .

How Depreciation is calculated in 1C 7.7, see this video:

Source: http://uriston.com/kommercheskoe-pravo/buhgalteriya/vneooborotnye-aktivy/amortizatsiya/na-balanse.html

Where is depreciation shown on the balance sheet?

We explained what is meant by depreciation charges in our consultation. We will talk about how depreciation is reflected in accounting and reporting in this material.

Depreciation in accounting

But the debited account depends on what type of activity the organization is engaged in, on its structure and features of the Accounting Policy for accounting purposes, as well as on where the depreciable property is used.

20 “Main production”;
44 “Sales expenses”, etc.

If, for example, a truck is used exclusively during the construction of a building, depreciation on the vehicle will be included in the initial cost of such a building, which is formed on account 08: Debit account 08 – Credit account 02.

We discussed the difference between direct and indirect costs in our consultation. Let us recall that direct costs are those that are directly related to the production of a certain type of product, and therefore can be directly included in its cost. Otherwise, the costs are considered indirect.

We talked in our separate material about what fixed and variable production costs are.

From the point of view of the dependence of the amount of depreciation charges on the volume of production, we can say that variable expenses can be considered depreciation charges calculated for fixed assets and intangible assets when using the method of writing off the cost in proportion to the volume of production (work) (clauses 18, 19 PBU 6/ 01, paragraphs 28, 29 PBU 14/2007).

And depreciation with other methods of its calculation, with a certain degree of convention, can be called a constant expense. Despite the fact that with other calculation options, depreciation of fixed assets and intangible assets does not depend on the volume of production, its value will be constant from month to month only when using the linear method.

At the same time, based on the principle of double entry, depreciation is also reflected in the debit of accounts, which means that in this part information about it can still be found in the balance sheet.

For example, depreciation of production equipment may be “hidden” in line 1210 “Inventories” (for example, in terms of work in progress or unsold finished goods), and depreciation of fixed assets involved in the creation of new fixed assets or intangible assets that have not yet been taken into account will be included in the amount in line 1190 “Other non-current assets”, etc. (Order of the Ministry of Finance dated July 2, 2010 No. 66n).

Depreciation in a trade organization can be reflected on line 2210 “Business expenses”, and depreciation of property leased on a non-systematic basis - on line 2350 “Other expenses”.

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Depreciation on balance sheet

Purpose of the article: Displaying information about available land plots, residual value of machinery and equipment, buildings, etc.
Line number in the balance sheet: 1150.
Account number according to the chart of accounts: Debit balance 01-credit balance 02.

Details

Note from the author! Line 1150 can display information about the debit balance of account 08 for subaccounts 01-04 (in terms of fixed assets) and the debit balance of account 07. The company makes the decision to include data independently (if the data is unimportant, the balances can be displayed on line 1190).

Fixed assets are understood as assets of an organization intended for long-term use for the purposes of the company.

According to the accounting rules, in order to accept acquired assets on the balance sheet as fixed assets, certain conditions must be simultaneously met:

Asset purpose:
production of company products, performance of work, services;

use for management needs;

leasing – transfer of an asset for temporary use and possession to third parties or temporary use.
The useful life of the object is more than 12 months or during the operating cycle (when the cycle is more than a year).
When purchasing an asset, the company does not have the goal of further resale of the object.
The use of an asset affects the company's income: the asset's ability generates economic benefits for the firm with continued use.

Fixed assets are expensive objects used by the company for a long time:

buildings, structures;
production equipment (for example, machines);
control devices and computer technology;
transport;
expensive household equipment;
livestock;
perennial plantings;
natural resources: land, water, etc.

Line 1150 – balance sheet asset: this displays the residual value of non-current assets - fixed assets (initial cost minus accrued depreciation) as of December 31 of the financial year. For non-depreciable property, the original cost of the property is displayed.

The final figure in accounting should be reflected as the final debit balance of account 01 minus the credit balance of account 02.

The reporting displays information as of the current period, December 31 of the previous year, and December 31 of the year preceding the previous one.

Cost of fixed assets

The initial cost of assets is the total cost of all costs incurred to acquire an object or bring it into operation. The cost of objects depends on the methods of obtaining:

purchasing finished equipment from a supplier using company funds;
contribution to the authorized capital of the company;
free of charge (the initial cost is based on market prices);
creation of the facility by the enterprise itself (in addition, the consumption of materials and wages of employees will be taken into account).

A change in the initial value is possible in cases of revaluation of assets, additional equipment, reconstruction, measures to modernize assets and partial liquidation.

According to PBU, companies have the right to revalue fixed assets at the end of the reporting period (price indexation or calculation of replacement price based on market prices).

Example 1

LLC "Medved" purchased a machine worth 250 thousand rubles. (including VAT – 38135.59). The price included additional costs for transporting the machine and installing it at the workplace.

All transactions are reflected in the accounting records of the LLC with the following entries:

RUB 211,864.41 – accounting for the costs of purchasing an asset (transportation and installation are carried out by the seller and are included in the price).

RUB 38,135.59 – input VAT is displayed.

211864.41 rub. - the initial cost of the equipment was formed, the machine was put into operation.

RUB 38,135.59

Method of reflecting depreciation expenses

– input VAT is claimed for deduction.

Example 2

A manufacturing company decided to create a new warehouse for storing materials and goods. The construction of the building was carried out by the company’s workers, the final cost of the work according to the estimate was 10 million rubles.

The accounting transactions show:

Dt08.03 Kt60,10,70, 69, etc.

10 million rubles – the actual costs of building a warehouse are taken into account (salaries of employees involved in construction, insurance contributions from wages, cost of materials expended (according to the act of writing off inventories), costs for additional services of contractors (for example, drawing up estimate documentation), etc.) .

Dt01 Kt08.03

10 million rub. – a new warehouse building was registered and put into operation

Normative base

Information on the residual value of the company's existing fixed assets is taken into account in accounting in accordance with PBU 6/01, approved by Order of the Ministry of Finance of the Russian Federation dated March 30, 2001 N 26n.

Common entries in accounting for fixed assets

Formation of the initial cost of fixed assets, commissioning of equipment
Write-off of residual value upon disposal of fixed assets (for example, upon sale or write-off when switching to more modern equipment)
Calculation of depreciation charges
Dt20 (23, 25, 26, 29) Kt 02 – accruals for objects depending on production.
Write-off of accrued depreciation upon disposal of fixed assets
Depreciation charges when revaluing objects
Depreciation charges on assets provided for temporary use to counterparties

Questions and answers on the topic

No questions have been asked about the material yet, you have the opportunity to be the first to do so

Pay attention to fig. 4.33. Here we showed filling out the directory element Methods for reflecting depreciation expenses for the Lathe object.

Rice. 4.33. Method of reflecting depreciation costs for the object Lathe used in the production workshop

Having created a new directory element and specified the name of the depreciation method, we must fill out the tabular part Methods.

Here, when creating a new element, you should first of all indicate the accounting account (field Cost account), to which the depreciation costs of the fixed asset will be charged. In our case it is 20.01.

As you remember, the system has mechanisms that allow you to configure the correspondence of accounting and tax accounts. After selecting an accounting account, a tax accounting account ( Cost account (CO)) will be substituted automatically.

Now you need to configure the subcontos provided on the account - when you click on the button with three dots in the corresponding field, the available lists of subcontos will appear. We configured them as follows:

· Subconto 1: Production workshop (the workshop to which the machine is assigned and in which it is operated)

· Subconto 2: Finished products (the machine is used to produce finished products, so it is logical to attribute the cost of its depreciation to these products)

· Subconto 3: Depreciation (since we are going to charge depreciation expenses to this account)

As you remember, above we looked at entering initial balances for OS objects, one of which is used in production, and the second in administration. Below, in Fig. Figure 4.34 shows the form of a directory element Methods of reflecting depreciation expenses for object OS, which is used in administration.

Rice. 4.34. Method of reflecting depreciation costs of the Air Conditioning facility used in the administration

Above, when filling out information about a fixed asset object, you may have noticed that the directory element Fixed assets contains tabs similar to the data we entered into the document Entering initial OS balances. These tabs will be filled with data when an object is accepted for accounting, or, as in our case, when a document is posted Entering initial OS balances. Let's see what changes this document makes in the system.

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Source: https://3zprint-msk.ru/amortizacija-v-balanse/

Depreciation on the balance sheet

Note 1

The amount of depreciation is determined by such indicators as:

calculation method;
the useful life (USI) of an object is the time when the organization intends to use this property in its activities.

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Depreciation of fixed assets

Depreciation must be calculated over the entire time period while the asset is in use and allows the organization to derive a positive economic effect from its operation.

The cost of an asset that is subject to transfer of its value into expenses in parts over a certain period of time must be fully depreciated, except in cases where it is disposed of before the end of this period.

If certain conditions are met by a business entity, depreciation can be calculated using simplified methods, for example, an organization can write off the depreciation amount once (at the end of the financial year) by making one accounting entry. In relation to production or household equipment, it is also possible to use a simplified accounting option in the form of a one-time attribution of their cost to the expense accounts provided for this.

The chart of accounts in the Russian Federation provides for a special account for accounting for depreciation of fixed assets with code 02 and the same name - “Depreciation of fixed assets”

Debit 20 Credit 02 in the amount of 17,000 rubles.

Amortization of intangible assets

Note 2

The main internal company document, which sets out the organization’s policy regarding the accounting of intangible assets, must prescribe an algorithm for calculating depreciation.

Figure 2 clearly shows all legally approved methods for calculating depreciation of property accounted for as intangible assets.

The figure also shows that Russian accounting standards provide for depreciation of intangible assets only if the organization can reliably indicate until what point in the foreseeable future this asset can be used and have a positive economic effect from this.

Shafran LLC accrued depreciation on the trademark in the amount of 10,000 rubles. The accountant must reflect this fact of economic life on the basis of the calculation (accountant’s certificate):

Debit 26 Credit 05 in the amount of 10,000 rubles.

Reflection of depreciation in the balance sheet

In Russian accounting rules, accounts intended to account for depreciation of assets can be characterized as regulatory.

Such accounts are intended to adjust certain balance sheet items downward.

In this regard, domestic accounting practice in the process of forming a balance sheet does not provide for the reflection of depreciation of property assets of a business entity in a separate column.

Source: https://spravochnick.ru/onearticle/amortizaciya_v_buhgalterskom_balanse/

Where are fixed assets shown on the balance sheet? Method of reflecting depreciation expenses. How to calculate depreciation on reconstructed or modernized fixed assets

In recent years, information has repeatedly appeared about the development of bills, the authors of which wanted to force employers to pay personal income tax on the income of their employees not at the place of registration of the employer-tax agent, but at the place of residence of each employee. Recently, the Federal Tax Service spoke out sharply against such ideas.

Why do it: To do financial planning for a company, it is necessary that the balance sheet is done well. This is how you can determine whether a company is profitable or not. This can be done annually, semi-annually or quarterly. Due to this, the company's net worth is determined as a result of the difference between assets and liabilities.

To better understand, it is important to learn more about the components of this calculation. Divided between current and long-term. Long-lived real estate is property or equipment that is less likely to sell easily and less likely to quickly become a current asset.

We explained in our article what is meant by depreciation charges. We will talk about how depreciation is reflected in accounting and reporting in this material.

Depreciation in accounting

Depreciation of fixed assets (FPE) and intangible assets (IMA) is calculated on the credit of account 02 “Depreciation of fixed assets” and account 05 “Depreciation of intangible assets”, respectively (Order of the Ministry of Finance dated October 31, 2000 No. 94n).

But the debited account depends on what type of activity the organization is engaged in, on its structure and features, as well as on where the depreciable property is used.

Depending on this, accrued depreciation can be reflected in the debit of the following accounts:

Cash: is considered to be the money that a company has in its checking account or savings. Accounts Receivable: These are the accounts receivable due to the company and cannot be accrued before one year.

Current assets: are in the company and can quickly turn into cash.
This is something that is available for immediate use.
Accounts Receivable: This is what customers have already purchased and have not yet paid for.

All debt obligations can be considered as liabilities.

Balance calculation

Accounts payable: what you need to pay in the short term. Long-term claims: debts that have more than one year due that need to be removed. Equity: Initial investment in a business by partners or profits that have been reinvested.

Payment Notes: Money received from third parties.
Salaries and contributions: salaries that have not yet been paid to employees.
Total current liabilities: the amount of current liabilities.
Loans: those that have been reinvested into the business.

To calculate lists of valuables invested in shares, loans, debits with suppliers, compensation of employees and other expenses, the following account is produced and recorded.

08 “Investments in non-current assets”;
20 “Main production”;
25 “General production expenses”;
26 “General business expenses”;
44 “Sales expenses”, etc.

Let us explain this with an example. Suppose a trade organization calculates depreciation on a trademark: Debit account 44 - Credit account 05.

And if a manufacturing enterprise charges depreciation of equipment used in the manufacture of a certain type of product: Debit account 20 - Credit account 02.

Equity = assets - liabilities. By constantly updating this data and using the right spreadsheet, you can achieve.

Details of rights, linking information, Management balance sheet forecast, Application forecasting, Output forecasting, Balance sheet forecasting, Liquidity indicators, Debt indicators, Patrimonial development evolution indicator.

See how important it is to prepare your company's balance sheet? Get this tool already and organize your accounts!

Depreciation: direct or indirect costs?

We looked at the difference between direct and indirect costs. Let us recall that direct costs are those that are directly related to the production of a certain type of product, and therefore can be directly included in its cost. Otherwise, the costs are considered indirect.

So is depreciation: if it relates to the production of a specific type of product, does not require distribution, but is directly included in the cost of production, it will be considered direct.

If, for example, this is depreciation of general shop equipment that is used in the production of several types of products, then such depreciation will have to be distributed proportionally to some base (for example, the wages of production workers). This depreciation will be considered an indirect expense.

Depreciation: fixed or variable costs?

We talked about it in our separate article. From the point of view of the dependence of the amount of depreciation charges on the volume of production, we can say that variable expenses can be considered depreciation charges calculated for fixed assets and intangible assets when using the method of writing off value in proportion to the volume of production (work) (pp.

18, 19 PBU 6/01, paragraphs 28, 29 PBU 14/2007). And depreciation with other methods of its calculation, with a certain degree of convention, can be called a constant expense. Despite the fact that with other calculation options, depreciation of fixed assets and intangible assets does not depend on the volume of production, its value will be constant from month to month only when using the linear method.

Where is depreciation shown on the balance sheet?

Depreciation of fixed assets and intangible assets is accumulated on the credit of passive accounts 02 and 05, respectively. Where is depreciation shown on the balance sheet? The answer to the question of how to reflect depreciation on the balance sheet is contained in PBU 4/99. It states that the balance sheet must include numerical indicators in a net valuation, that is, minus regulatory values (clause 35 of PBU 4/99).

In other words, separately accrued depreciation is not reflected in the balance sheet. It reduces the value of the depreciable property for which it is accrued. Thus, depreciation of fixed assets in the balance sheet reduces the cost of fixed assets, i.e.

in the balance sheet, fixed assets are reflected at their residual value, which is calculated as follows: Debit balance on account 01 “Fixed assets” - Credit balance on account 02.

Accordingly, “intangible” depreciation charges on the balance sheet reduce the value of intangible assets, i.e., intangible assets are also reflected at their residual value. It is found by subtracting from the debit balance of account 04 “Intangible assets” the credit balance of account 05 as of the reporting date on which the balance sheet is compiled.

Depreciation in the Income Statement

In the Statement of Financial Results, depreciation can be reflected on different lines. It depends on how it was calculated in accounting. In this case, the amount of depreciation deductions is often included in the total amount of the line, i.e., it is not allocated separately.

For example, depreciation of fixed assets or intangible assets used in the process of providing services is reflected in line 2120 “Cost of sales” (Order of the Ministry of Finance dated July 2, 2010 No. 66n).

The same line reflects the part of depreciation of production equipment, which falls on the sold part of the finished products produced using such equipment.

Depreciation in a trade organization can be reflected on line 2210 “Business expenses”, and depreciation of property leased on a non-systematic basis - on line 2350 “Other expenses”.

Information updated:

Depreciation is the gradual transfer of the cost of fixed assets to the cost of products (works, services).

On line 1150 of the balance sheet, fixed assets are indicated at their residual value (original cost minus accrued depreciation).

An exception to this procedure is provided:

for land and environmental management objects (water, subsoil and other natural resources);
for housing stock that is not used to generate income;
for external landscaping, forestry or road facilities;
for museum exhibits;
for perennial plantings that have not reached operational age.

Depreciation is not charged on such property. Therefore, line 1150 of the balance sheet reflects their original cost.

If you take into account a fixed asset costing no more than 40,000 rubles as part of inventory, then you do not need to charge depreciation on it. Write off its entire cost as commissioning costs.

Depreciation is suspended:

for the period of reconstruction, modernization and overhaul of fixed assets, if the period of such work exceeds one year;
if fixed assets are transferred to conservation and the conservation period exceeds three months.

Procedure for calculating depreciation

Depreciation is charged monthly, starting from the month following the month in which the object is included in fixed assets. The fact of exploitation does not matter.

Passive LLC purchased the machine and on April 5 of the reporting year included it in fixed assets. Depreciation on the machine must be calculated from May.

Depreciation accrual stops on the 1st day of the month following the month when the fixed asset is fully depreciated or written off from the company’s balance sheet.

Example. Depreciation calculation.

Passiv LLC sold the machine on August 5 of the reporting year. Despite this, depreciation for August must be accrued in full.

If a fixed asset is fully depreciated (that is, the amount of depreciation accrued on it is equal to its original cost), then its residual value is zero. Consequently, the cost of such fixed assets is not reflected in the balance sheet. There is no need to charge depreciation on it.

You must record depreciation in accounting as a credit to account 02 and a debit to the corresponding cost account.

To do this, make an entry in accounting:

DEBIT 08 (20, 23, 25, 26, 29, 44) CREDIT 02

Depreciation of fixed assets has been calculated.

Depreciation methods

There are four methods for calculating depreciation on fixed assets:

linear method;
reducing balance method;
method of writing off cost by the sum of numbers of years of useful life;
method of writing off cost in proportion to the volume of products (works) produced.

Please note: in tax accounting there are only two methods of calculating depreciation: linear and non-linear.

When calculating depreciation, you can use any of these methods. To do this, divide all fixed assets in accounting into homogeneous groups that have common characteristics.

For example, buildings, computers, transport, furniture, etc. For fixed assets of one group, you can use only one of the listed methods.

Apply the selected method throughout the entire service life (useful use) of the fixed asset.

In tax accounting, the method of calculating depreciation, unlike accounting, can be changed. The transition from linear to nonlinear is possible from the beginning of the new year. The reverse transition can be carried out once every five years (clause 1 of Article 259 of the Tax Code of the Russian Federation).

Since January 1, 2017, the new OKOF “OK 013-2014 (SNS 2008)” has been in effect, adopted and put into effect by Order of Rosstandart of December 12, 2014 No. 2018-st.

Direct and reverse transition keys between the new and old OKOF OK 013-94, valid until January 1, 2017, were established by Rosstandart order No. 458 dated April 21, 2016.

In accordance with the new OKOF, the following enlarged groups of homogeneous objects have been established:

residential buildings and premises;
buildings (except residential)
structures;
land improvement costs;
information, computer and telecommunications equipment;
other machinery and equipment, including household equipment and other objects;
vehicles;
weapons systems;
cultivated biological resources;
cultivated plant resources.

The useful life of fixed assets for profit tax purposes is given in the Classification of fixed assets included in depreciation groups (approved by Decree of the Government of the Russian Federation of January 1, 2002 No. 1). Until January 1, 2017, the specified Classification could also be used for accounting purposes, as was specifically stated in Decree of the Government of the Russian Federation dated January 1, 2002 No. 1.

Purpose of the article: Displaying information about available land plots, residual value of machinery and equipment, buildings, etc.
Line number in the balance sheet: 1150.
Account number according to the chart of accounts: Debit balance 01-credit balance 02.

Details

Fixed assets are understood as assets of an organization intended for long-term use for the purposes of the company.

According to the accounting rules, in order to accept acquired assets on the balance sheet as fixed assets, certain conditions must be simultaneously met:

Asset purpose:
production of company products, performance of work, services;

use for management needs;

leasing - transfer of an asset for temporary use and possession to third parties or temporary use.
The useful life of the object is more than 12 months or during the operating cycle (when the cycle is more than a year).
When purchasing an asset, the company does not have the goal of further resale of the object.
The use of an asset affects the company's income: the asset's ability generates economic benefits for the firm with continued use.

Fixed assets are expensive objects used by the company for a long time:

buildings, structures;
production equipment (for example, machines);
control devices and computer technology;
transport;
expensive household equipment;
livestock;
perennial plantings;
natural resources: land, water, etc.

Line 1150 - balance sheet asset: this displays the residual value of non-current assets - fixed assets (original cost minus accrued depreciation) as of December 31 of the financial year. For non-depreciable property, the original cost of the property is displayed.

The final figure in accounting should be reflected as the final debit balance of account 01 minus the credit balance of account 02.

The reporting displays information as of the current period, December 31 of the previous year, and December 31 of the year preceding the previous one.

Cost of fixed assets

The initial cost of assets is the total cost of all costs incurred to acquire an object or bring it into operation. The cost of objects depends on the methods of obtaining:

purchasing finished equipment from a supplier using company funds;
contribution to the authorized capital of the company;
free of charge (the initial cost is based on market prices);
creation of the facility by the enterprise itself (in addition, the consumption of materials and wages of employees will be taken into account).

A change in the initial value is possible in cases of revaluation of assets, additional equipment, reconstruction, measures to modernize assets and partial liquidation.

According to PBU, companies have the right to revalue fixed assets at the end of the reporting period (price indexation or calculation of replacement price based on market prices).

Practical examples of capitalization of fixed assets

Example 1

LLC "Medved" purchased a machine worth 250 thousand rubles. (including VAT - 38135.59). The price included additional costs for transporting the machine and installing it at the workplace.

All transactions are reflected in the accounting records of the LLC with the following entries:

RUB 211,864.41 - accounting for the costs of acquiring an asset (transportation and installation are carried out by the seller and are included in the price).

RUB 38,135.59 - input VAT shown.

211864.41 rub. — the initial cost of the equipment was formed, the machine was put into operation.

RUB 38,135.59

Method of reflecting depreciation expenses

Input VAT is claimed for deduction.

Example 2

The accounting transactions show:

Dt08.03 Kt60,10,70, 69, etc.

10 million rubles - the actual costs of building a warehouse are taken into account (salaries of employees involved in construction, insurance contributions from wages, cost of materials used (according to the act of writing off inventories), costs for additional services of contractors (for example, drawing up estimate documentation), etc.) .

Dt01 Kt08.03

10 million rub. - a new warehouse building was registered and put into operation

Normative base

Common entries in accounting for fixed assets.

Formation of the initial cost of fixed assets, commissioning of equipment
Write-off of residual value upon disposal of fixed assets (for example, upon sale or write-off when switching to more modern equipment)
Calculation of depreciation charges
Dt20 (23, 25, 26, 29) Kt 02 - accruals for objects depending on production.
Write-off of accrued depreciation upon disposal of fixed assets
Depreciation charges when revaluing objects
Depreciation charges on assets provided for temporary use to counterparties

Questions and answers on the topic

No questions have been asked about the material yet, you have the opportunity to be the first to do so

Pay attention to fig. 4.33. Here we showed filling out the directory element Methods for reflecting depreciation expenses for the Lathe object.

Rice. 4.33. Method of reflecting depreciation costs for the object Lathe used in the production workshop

Having created a new directory element and specified the name of the depreciation method, we must fill out the tabular part Methods. Here, when creating a new element, you should first of all indicate the accounting account (field Cost account), to which the depreciation costs of the fixed asset will be charged. In our case it is 20.01. As you remember, the system has mechanisms that allow you to configure the correspondence of accounting and tax accounts. After selecting an accounting account, a tax accounting account ( Cost account (CO)) will be substituted automatically.

Depreciation on balance sheet

· Subconto 1: Production workshop (the workshop to which the machine is assigned and in which it is operated)

· Subconto 2: Finished products (the machine is used to produce finished products, so it is logical to attribute the cost of its depreciation to these products)

· Subconto 3: Depreciation (since we are going to charge depreciation expenses to this account)

Rice. 4.34. Method of reflecting depreciation costs of the Air Conditioning facility used in the administration

⇐ Previous12

What we reflect in line 1150 of the balance sheet: Fixed assets

Return to methods of analysis of financial statements

Depreciation

Formula icon (acronym): A

Synonyms: Depreciation, Amortization

Definition: the amount of money set aside to replace (nominal) non-current assets used in the production process (account 05);

Location: amount of depreciation of depreciable property:
— intangible assets (line code 393) and
— fixed assets (line code 394) in form No. 5 “Appendix to the balance sheet” in section 3.

Calculation: -

This method of analyzing financial statements is used to calculate such indicators as:
profit coverage ratio for loans,
Cash payment coverage ratio (CFCR, 9-factor analysis).

Codes 640, 412, 413 according to the conditions of the analysis.
line code 740 of form No. 5 “Appendix to the balance sheet” in section 3.

Section 3 “Depreciable property” provides a breakdown of the composition of intangible assets, fixed assets and profitable investments in tangible assets owned by the organization. Data are given at original (replacement) cost.

Organizations are recommended to reflect data on the value of property transferred in accordance with the agreement for trust management in the section “Depreciable property”. At the same time, when developing and adopting financial reporting forms by an organization, appropriate lines should be provided.

The subsection “Profitable Investments in Material Assets” of the section “Depreciable Property” reflects the initial cost of material assets specifically acquired by an organization to provide them under a lease agreement (property lease) for a fee for temporary possession and use or for temporary use in order to generate income (property purchased for leasing, provision under a rental agreement, etc.).

Considering that in the section “Depreciable property” the data is reflected at the original (replacement) cost, data on the accrued amount of depreciation for intangible assets, fixed assets, profitable investments in tangible assets, low-value and wear-and-tear items (if data is entered into the report) are given in help for the section.

For reference, the section “Depreciable property” in accordance with the requirements of regulatory documents on accounting also provides data characterizing the change in the value of fixed assets:
— as a result of revaluation of fixed assets in accordance with the established procedure. In this case, data on the results of indexation in connection with the revaluation can be presented in comparison with the value of fixed assets based on the results of the previous revaluation (that is, without indicating the results of repeated changes in the value of fixed assets in which they were initially accepted for accounting). Data on the results of revaluation are given with a plus sign, and data on markdowns are given in parentheses;
- as a result of completion, additional equipment, reconstruction, partial liquidation.

As a reference to the data on depreciable property, data is provided on the book value of property pledged by the organization in accordance with the agreement, as well as on the value of depreciable property for which, in accordance with the requirements of regulatory documents, depreciation is not accrued or accrual is temporarily suspended.

REFLECTION OF ESPECIALLY VALUABLE PROPERTY IN THE ACCOUNTING REPORTS OF INSTITUTIONS

I.V. Artemova,
chief accountant, consultant

Recently, accounting issues and reporting of particularly valuable property have become a “headache” for accountants of state (municipal) budgetary and autonomous institutions.
Let's consider what actions need to be taken by the accounting service of an institution in order to draw up an annual report for 2012, taking into account the requirements of the Russian Ministry of Finance for the reflection of information about such property.

Special status of OCI

According to Article 298 of the Civil Code of the Russian Federation, budgetary and autonomous institutions, without the consent of the owner, do not have the right to dispose of real estate and especially valuable movable property assigned to them by the founder or acquired by the institution at the expense of funds allocated by the founder for the acquisition of such property.

Where is depreciation shown on the balance sheet?

At the same time, the concept of “particularly valuable property” (hereinafter referred to as OVI) for accounting purposes was first used in a letter from the Ministry of Finance of Russia dated September 18, 2012 No. 02-06-07/3798. In other words, OCI is all real and movable property that meets the established criteria for classifying such property as particularly valuable.
In turn, the main criteria for classifying property as especially valuable movable property (hereinafter referred to as VTsDI) are contained in the resolution of the Government of the Russian Federation dated July 26, 2010 No. 538(hereinafter referred to as Resolution No. 538), according to which the types of OCDI of autonomous or budgetary institutions can be determined:
a) for federal institutions - by the relevant federal executive authorities;
b) for institutions of constituent entities of the Russian Federation - in the manner established by the highest executive body of state power of the constituent entity;
c) for municipal institutions - Resolution No. 538 only determines the conditions for classifying movable property as particularly valuable.
Thus, the following movable property is subject to inclusion in the lists of OCDI by the founders:
a) the book value of which exceeds the amount established by the authorized body. Moreover, this size must be within the interval specified by Decree No. 538;
b) other movable property, without which it will be difficult for the institution to carry out its main statutory activities;
c) property, the alienation of which is carried out in a special manner.
Thus, objects can be classified as OCDI according to various types of criteria (cost, purpose, alienation procedure). In fact, this means that upon receipt of any new property (type of property), the question must be decided whether to classify it as OCDI or not.

"Patient" accounting issues

Reflection of depreciation and amortization in accounting and reporting

The financial condition of an economic entity is characterized by two main groups of indicators:

about the state of the assets of this organization, which is very important for creditors and other lenders, as it helps to obtain data on liquidity, i.e. an idea of what the organization has to cover its obligations if necessary;
about the results of operations, which is also very important, for example, for shareholders interested in information about the profitability of production and, therefore, the possible efficiency of investing their funds.

The book value of assets reported in financial statements often differs significantly from their fair market value, with misstatements increasing with each change in inflation and associated revaluation of assets.

Fixed assets usually make up a significant portion of an organization's assets. One of the most important characteristics of their condition is the wear rate.

Wear is the process of an object losing its use value. Its economic essence lies in determining the real value of an object. The real value of an object is determined not only by the degree of its physical deterioration, but also by changes in market conditions. It should be noted that there are assets that do not reduce their real value.

Unlike wear and tear, depreciation is the process of an object transferring its value to the cost of the created product.

Depreciation is an element that forms the cost of production, and, therefore, influences the indicators characterizing the results of the organization's activities. Thus, only those objects that cannot be used as means of labor are classified as non-depreciable.

Russian accounting practice does not provide for separate reflection of the processes of depreciation and depreciation of fixed assets. In practice, these concepts are identified. Meanwhile, based on the definitions given above, we can conclude that the processes of wear and depreciation may not coincide. According to this criterion, fixed assets can be divided into three groups:

Assets that wear out and depreciate equally.
Assets that wear out less than they depreciate.

The most typical example is assets that do not lose their use value. However, the participation of such assets in the production process determines the need to charge depreciation on them (for example, buildings).

Assets that wear out more than they depreciate (for example, vehicles, equipment).

As you know, in the Balance Sheet, indicators for all items are reflected in the net valuation, i.e.

the value of assets is reduced by the amount of accrued depreciation. Consequently, the reporting will not adequately reflect the true value of these assets.

In Western practice, to solve this problem, an approach is used in which the realizable value of an object is not subject to depreciation. The use of this approach will be able to provide the user with real data on the state of assets, but at the same time, the indicators characterizing the results of the organization’s activities will be distorted. This is due to the fact that depreciable assets are used in the production process and therefore must be taken into account when determining costs. If depreciation is not calculated, the cost is underestimated and, consequently, the profit is overestimated.

Therefore, both indicators (depreciation and amortization) are equally necessary to generate data characterizing the financial condition of an economic entity. Depreciation - to reflect the state of fixed assets in reporting, depreciation - to reflect the use of fixed assets in the process of forming the cost price (shown in form No. 2).

The reporting forms contain two groups of indicators reflecting the state of fixed assets (in the Balance Sheet (Form No. 1) and in the appendices to the Balance Sheet (Form No. 5)). Considering that the left side of Form No. 1 is intended to reflect the state of assets, it seems that the balance sheet should contain information about the real value of assets, i.e. taking into account wear and tear. To reflect depreciation, you can use form N 5.

To generate these reporting data, an appropriate accounting organization is required. Thus, to reflect divergent amounts of depreciation and amortization in accounting, separate accounts should be used. In this case, the amount of depreciation could be directly written off from the asset account to the depreciation account.

Let us show the proposed option for reflecting wear and tear with an example.

In December 2001, the organization acquired an item of fixed assets for use in its main production for 120,000 rubles, which is reflected in the accounting accounts as follows:

Debit 08 “Investments in non-current assets” Credit 60 “Settlements with suppliers and contractors - 120,000 rubles;

Debit 01 "Fixed assets" Credit 08 - 120,000 rub.

The useful life of this object is 5 years (depreciation rate is 20%).

Depreciation charges accrued for the first two years (2002 and 2003) of the facility’s operation amounted to 48,000 rubles:

Debit 20 “Main production” Credit 02 “Depreciation of fixed assets” - 48,000 rubles.

Situation 1a. Let’s say that due to wear and tear, the use value of an object has decreased by 75,000 rubles. (1st year - 35,000 rubles, 2nd year - 40,000 rubles). The following entry is made in accounting:

Debit of the depreciation account Credit 01 - 75,000 rub.

We propose to reflect the following data in reporting:

form N 1 line 120 “Fixed assets” - 45,000 rubles. (RUB 120,000 - RUB 75,000);

(in terms of accrued depreciation);

form N 5 line "Machinery and equipment": column 3 - 96,000 rubles. (RUB 120,000 - RUB 24,000);

column 6 - 72,000 rub. (120,000 rubles - 48,000 rubles).

Situation 1b. A situation similar to situation 1a, but without using a depreciation account (current practice).

Reflection in reporting:

Form No. 2 line “Cost of goods, products, works, services sold” - 48,000 rubles.

Situation 2a. Let’s say that due to wear and tear, the use value of an object has decreased by 35,000 rubles. (1st year - 15,000 rubles, 2nd year - 20,000 rubles).

Reflection in accounting:

Debit of the depreciation account Credit 01 - 35,000 rub.

Reflection in reporting:

form N 1 line 120 - 85,000 rub. (RUB 120,000 - RUB 35,000);

Form No. 2 line “Cost of goods, products, works, services sold” - 48,000 rubles.

Situation 2b. A situation similar to situation 2a, but without using a depreciation account (current practice).

Reflection in accounting:

Debit 20 Credit 02 - 48,000 rub.

Reflection in reporting:

form N 1 line 120 - 72,000 rub. (RUB 120,000 - RUB 48,000);

Form No. 2 line “Cost of goods, products, works, services sold” - 48,000 rubles.

Conclusion. The described situations show that current practice does not allow one to reliably reflect the value of fixed assets on the organization’s balance sheet: for example, if depreciation exceeds the amount of accrued depreciation, the balance sheet reflects an inflated value of fixed assets, and the corporate property tax and balance sheet currency are overstated; if the amount of accrued depreciation exceeds depreciation, the balance sheet reflects the undervalued value of fixed assets, the corporate property tax and the balance sheet currency are underestimated.

Situation 3a (in development of situation 1a). During the third year, the real value of the object, taking into account market conditions, decreased by 45,000 rubles, i.e. the object has worn out and its residual value is now zero.

Reflection in accounting:

Debit 20 Credit 02 - 24,000 rubles;

Debit of the depreciation account Credit 01 - 45,000 rubles.

Due to the lack of adequate depreciation, this depreciation should be considered as a factor potentially influencing the formation of the financial result.

Due to the deterioration of the object, management decides to write it off. When an object is disposed of, the amount of accumulated depreciation by the amount of the corresponding depreciation is written off as follows:

Debit 02 Credit of depreciation account - 72,000 rubles.

Remaining depreciation for which there is no adequate amortization must be shown as a loss:

Debit 91 "Other income and expenses", subaccount 2 "Other expenses" Credit to the depreciation account - 48,000 rubles.

Reflection in reporting:

Form N 2 line “Other operating expenses” - 48,000 rubles.

Situation 3b (in development of situation 1b). A situation similar to situation 3a, but without using a depreciation account (current practice), i.e. the object was depreciated for the third year by 24,000 rubles:

Debit 20 Credit 02 - 24,000 rub.

Then the object is written off:

Debit 02 Credit 01, subaccount “Disposal of fixed assets” - 72,000 rubles;

Debit 91, subaccount 2 “Other expenses” Credit 01, subaccount “Disposal of fixed assets” - 48,000 rubles;

Debit 99 “Profits and losses” Credit 91, subaccount 9 “Balance of other income and expenses” - 48,000 rubles.

Reflection in reporting:

Form N 1 line 120 - 0 rub. (120,000 rub.

We reflect fixed assets in the balance sheet

— 120,000 rub.);

Form No. 2 line “Other operating expenses” - 48,000 rubles.

Conclusion. When a completely worn-out fixed asset is written off from accounting, in both cases a loss arises equal to its residual value.

Situation 4a (in development of situation 2a). Let's assume that the item continues to be used in production for another three years and is therefore subject to depreciation:

That is, the object completely transferred its value to the manufactured products.

Depreciation on this object is accrued in the following amounts:

Debit of the depreciation account Credit 01 - 60,000 rub. (20,000 rubles for each year).

When an object is disposed of, the following entry will be made in the accounting accounts:

Debit 02 Credit of depreciation account - 120,000 rubles.

The residual value (balance on account 01), in our opinion, must be capitalized as scrap metal, scrap or spare parts:

Debit 91, subaccount 2 "Other expenses" Credit 01 - 25,000 rubles. (RUB 120,000 - RUB 95,000);

Debit 10 "Materials" Credit 91, subaccount 1 "Other income" - 25,000 rubles.

The remaining unpaid amount of depreciation forms profit:

Debit of the depreciation account Credit 91, subaccount 1 “Other income” - 25,000 rubles. (120,000 rubles - 95,000 rubles).

Reflection in reporting:

form N 1 line 120 - 0 rub. (RUB 120,000 - RUB 120,000);

form N 1 line 211 “raw materials, materials and other similar values” - 25,000 rubles;

Form N 2 line “Other operating income” - 25,000 rubles.

Situation 4b (in development of situation 2b). Situation similar to situation 4a, but without using a depreciation account (current practice). The object was depreciated. An entry will be made for the amount of accrued depreciation:

Debit 20 Credit 02 - 72,000 rub.

Then the object is written off:

Debit 01, subaccount “Disposal of fixed assets” Credit 01 - 120,000 rubles;

Debit 02 Credit 01, subaccount “Disposal of fixed assets” - 120,000 rubles;

Debit 91, subaccount 2 "Other expenses" Credit 01, subaccount "Disposal of fixed assets" - 0 rub.

Debit 99 Credit 91, subaccount 9 “Balance of other income and expenses” - 0 rub.

Reflection in reporting:

form N 1 line 120 - 0 rub. (RUB 120,000 - RUB 120,000);

Form N 2 - this operation is not reflected.

Conclusion. The current practice does not reliably reflect the value of fixed assets on the organization’s balance sheet; the tax base for property tax is underestimated.

When analyzing production efficiency, the amount of accumulated (but undescribed) depreciation and amortization should be treated as a loss or profit, respectively.

When an item is written off, this potential loss or gain is converted into an actual loss or gain.

The problem of accounting for depreciation and especially its intended use is of great economic importance. Over the past decade, accrued depreciation has practically not been used for its intended purpose. Meanwhile, the depreciation of fixed assets increased and has now reached a critical value. Under these conditions, the importance of using depreciation as a source of reinvestment in fixed assets predetermines, in our opinion, the need to maintain separate accounting for depreciation and depreciation of fixed assets.

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Depreciation of fixed assets on the balance sheetHere is the formula for line 1150 “Fixed assets”:

Example of calculating the balance line “Fixed assets”

Depreciation of fixed assets

Amortization of intangible assets

Reflection of depreciation in the balance sheet

What is depreciation on the balance sheet?

In financial statements

In accounting

Admission

Invoice received

Acceptance for registration

Regular operation

Where is depreciation shown on the balance sheet?

Depreciation in accounting

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