Signs of fixed assets: concept, types, classification

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

For any economic activity, means of production are needed to ensure its efficiency. These have specific features. These funds require a special attitude towards themselves, which is expressed in a special consideration of three points: their entry into the organization, internal movements, and disposal. In this article, we will consider the concept and characteristics of fixed assets, as well as analyze the classification of the category.

General information

The means of labor that the company uses for its own activities are called fixed assets. And under fixed assets should be understood their cost expression. In addition, in the process of describing the production assets that a company needs to generate income, it is customary to operate with the following concepts:

• Current assets are nothing more than fixed assets withdrawn fromproduction cycle, after which they are turned into financial assets to cover the needs of the company.
• Inventory. Unlike fixed assets, they are used for further processing (in other words, they are used as raw materials) or sent to solve management problems.
• Intangible assets are considered to be the intellectual property equivalent of property, plant and equipment.

Regulation category

Before considering the signs of fixed assets, it is advisable to touch on their regulatory regulation. Thus, special requirements for their accounting are determined by special regulatory documentation. It is important to highlight the following papers here:

• 402 Federal law with fundamental principles that are related to accounting for fixed assets.
• Instructions 157n and 162n on the use of accounting rules.
• Accounting documents PBU 6/01, as well as PBU 9/99, which establish the classification of fixed assets in accordance with groups, the procedure for accounting, as well as the disposal of equipment.
• Guidelines of the Ministry of Finance of the Russian Federation.

Economic essence and signs of classification of fixed assets

It is important to note that in economic terms, the category in question is a means of production and non-production type. They consist of the following components:

• The active part, in other words, funds that directly work to generate income.
• The passive part, that is, finances,whose ownership allows the firm to carry out economic activities.

Next, it is advisable to consider the signs of the classification of fixed assets. So, among the fundamental criteria for classifying equipment as an OS, it is important to note the following:

• Its use to generate income during the entire period of operation.
• Equipment must not be resold. This is the so-called sign of ownership of fixed assets.
• Evaluation. It must be borne in mind that the cost of fixed assets should be one hundred thousand rubles in tax accounting and forty thousand rubles in accounting.
• Period of use. The useful life of the equipment must be more than a year.

Other criteria

The category is also classified according to the characteristics of fixed assets. These include the following:

• Functional features: non-manufacturing and production.
• Industry features: construction, public organizations, industry, commerce, agriculture.
• Affiliation: leased (attracted) and own.
• Use: mothballed or operated.
• Real expression.

Among the main features of fixed assets, it is worth stopping at the last point.

Real expression

Such a sign of fixed assets as a real expression includes a number of components. First of all, we are talking about equipment:

• Production lines, machine tools, etc.
• Power plants, machines and other mechanisms.
• Laboratory and measuring equipment.
• Computers and other electronics.
• Vehicles.
• Inventory, for example, a work tool.

When considering this feature of fixed assets, it is advisable to disassemble the category of real estate:

• Buildings and houses.
• Engineering structures (roads, bridges and other communications).
• Systems designed for energy supply (water and gas pipelines, heating mains, power lines).

The non-manufacturing sector also belongs to the presented attribute of fixed assets of enterprises:

• Service apartments.
• Sports and cultural buildings.
• Children's institutions.

Characteristics of fixed assets

Characterizes the object as OS, first of all, the possibility of its repeated use in the economic activity of the company. In this case, the economic characteristics of fixed assets should be taken into account:

• Retain their original physical form, with no external changes.
• Their depreciation over the allotted period of operation, associated primarily with direct operation in the production process, is written off from the initial cost to production costs in the form of depreciation charges.

Sources of funding

Need to know thatthe formation of the company's OS is carried out from various sources, which are determined by their characteristics. Basically, there are two directions. It is advisable to parse them:

• Internal. In other words, depreciation, authorized capital or profit. Among their advantages, it should be noted the possibility of a prompt decision on the application, as well as the absence of additional plan costs.
• External. That is attracted targeted investments or loans. Here the question concerns time limits on the terms of repayment, as well as the need to pay certain interest amounts.

The life cycle of fixed assets

One of the specific features of fixed assets is their life cycle. When carrying out practical activities, you need to know that it consists of three stages: the receipt of fixed assets in the company, the period of their operation and the disposal of equipment or other fixed assets. It is worth noting that the sources of receipt of certain objects in the organization can vary significantly. It can go:

• About the purchase, which, as a rule, is accompanied by the signing of the OS acceptance certificate.
• About renting, in other words, using equipment without taking ownership of it.
• About gratuitous transfer in accordance with a gift agreement or as a donation.
• About OS leasing.

One way or another, primary documentation for OS accounting is issued for equipment, which are special unified forms. The final stage of receipt of fixed assets is their commissioning. This operation is necessarily confirmed by means of an act, which is signed by the commission created, among other things, for this purpose. The procedure for receiving an object ends with its assessment, including:

• The price of the property.
• Movement.
• Transportation charges.
• Commissioning cost.

After commissioning, the equipment is put on the balance sheet. To do this, a special inventory card (OS-6) is entered for the object. So, each of the pieces of equipment is accepted for tax and accounting. In the process of operation, fixed assets often undergo various kinds of changes. As a rule, they are expressed in:

• Reassessment is usually in the direction of increasing the cost of OS, which is associated with their modernization or re-equipment.
• Depreciation of operating systems and, accordingly, their depreciation.
• Decrease in value due to changing market conditions.
• Conservation, which is possible when decommissioning the OS for a long time.
• Audit the objects you need to check the effectiveness of their application.
• Analyze their key metrics, including renewal rate or OS shelf life.
• Inventory, as a rule, with the entry of changes identified in the state of the object into a special inventory card.

OS depreciation

So, we have considered the defining features of fixed assets, their classification and life cycle. Next, it is worth considering the questiondepreciation. The initial cost of the equipment during its operation is somehow reduced and transferred to the cost of the main product of the company. This process is called depreciation. There are two methods for calculating it:

• Linear: Equal accrual throughout life.
• Decreasing balance method: depreciation is calculated on the residual value of the property complex at the beginning of the year.

The useful life is selected from the classifier, according to special groups, of which there are ten. Consider them separately.

Classifier groups

We have analyzed 4 signs of fixed assets and the issue of depreciation. It is advisable to determine the classifier groups, according to which the useful life is revealed:

• Construction and assembly tools (both mechanized and manual), as well as pneumatic units - from one to two years.
• Computers, sports facilities, lifts - two to three years.
• Copiers, minibuses, wells - three to five years.
• Buildings made of metal structures and plastic, large animals, trucks - from 5 to 7 years.
• Industrial sites, cars, gas turbines - 7 to 10 years.
• Gas pipelines, ships - from 10 to 15 years.
• Wooden, frame, panel buildings; perennial plantations, transport networks - from 15 to 20 years.
• Safes, riverboats, ironroads - from 20 to 25 years.
• Berths, wagons, vegetable stores - from 25 to 30 years.
• Reinforced concrete buildings, forest plantations, cruise ships - over 30 years.

Disposal

As it turned out, the last stage in the life of an OS in an organization is retirement. The options are as follows:

• Implementation.
• Write-off, often partial, with its documentary execution without fail.
• Liquidation in case of impossibility of further application.
• Transfer, including free of charge.
• Exchange.
• Accounting and tax accounting.

Recording and purposes of accounting

Among the goals of accounting and tax accounting, the following should be noted:

• Formation and subsequent determination of the costs associated with the arrival and operation of fixed assets, in fact.
• Correct and timely execution of documentation accompanying the receipt and movement of equipment in the company.
• Monitoring the safety of pieces of equipment throughout their entire service life.
• Analysis of the effectiveness of their application.

Tax accounting is different from accounting, which consists in the limit of the property price:

• In tax accounting - 100,000 rubles.
• In accounting - 40,000 rubles.

Maintaining this type of accounting is relevant both in budgetary and commercial structures. Only the mechanism for acquiring an object differs. So, for state employees, it is mandatory to agreepurchases with representatives of higher authorities, as well as cash allocations for solving planned tasks from budget funds.

Conclusion

So, we have considered the concept, definition, and signs of fixed assets. In addition, they touched upon the issue of their regulatory regulation and classification. We analyzed the categories of introduction, operation and disposal of fixed assets, and also identified the main features of working capital.

It is worth noting that today "1C: Accounting" managed to automate all accounting operations, which includes accounting for fixed assets. Their movement cycle is:

Receipt - accounting - depreciation - subsequent deregistration

All receipts of equipment in any case are reflected in the accounts of the organization:

• 01 - data at the time of commissioning (on subaccounts corresponding to their type).
• 10 - data regarding the availability of fixed assets and their movement are entered on the subaccount.

In postings it looks like this:

• Dt08/Kt60 - acquisition of fixed assets.
• Dt08/Kt75.1 - another source of fixed income.
• Dt01/Kt08 - putting fixed assets into operation and putting them on the balance sheet of the organization.

So, it's important to remember: there are six most important among OS features:

• cost over forty thousand rubles;
• used for more than twelve months;
• the organization has rights to an object of fixed assets (state registration);
• the purpose of use is considered to be commercial activitystructures;
• an item of property, plant and equipment entails economic benefits in future periods;
• the item is not considered a commodity (in other words, it is not intended for resale).

Fixed assets and fixed assets are actually the same concept. In order to correctly determine the group of fixed assets, it is advisable to use the All-Russian Classifier of Fixed Assets (OKOF). For tax and accounting purposes, the Classification of fixed assets is used, which are included in depreciation groups, approved. RF GD dated January 1, 2002 No. 1 (as amended on December 10, 2010). You should be aware that fixed assets are subject to depreciation. This is necessarily reflected in the accounting in accordance with the standards of depreciation for each object.