Non-produced assets: definition, features, accounting

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

The leaders of many enterprises, in an effort to improve the conditions of work and leisure of employees, acquire property that is not intended for use in the production process or to meet the management needs of the organization. Such items include, for example, kettles, microwave ovens, refrigerators, fitness equipment, medical equipment, air conditioners, etc. Although this property is classified as a non-produced asset, it must be accounted for. In our article, we will talk about the nuances of posting such objects, the features of taxation and other important points.

Relevance of the issue

Difficulties in taking into account the fixed assets of the enterprise cause some problems in calculating the base for property tax. How to use the expense recognition optionacquisition costs? Can non-produced assets be subject to VAT? What should an accountant do so that the company does not have problems with the IFTS? There are a lot of questions. Let's figure it out.

What are "non-produced assets" in accounting?

Today there are two approaches to the reflection of the objects in question. On the one hand, in the Regulations on keeping records, the division of property is not carried out. On the other hand, on the basis of clause 4 PBU 6/01, one of the main conditions for recognizing an object as a fixed asset is its use in the production process, when performing work or providing services, or for the management needs of the company. Another important criterion is the ability of the property to make a profit.

In the first case, investments in non-produced assets, including the costs of acquiring, bringing them to a state suitable for use, are reflected in the account. 08 and debited to the account. 01.

In the second case, experts believe that since the objects are not directly related to production, it means that they cannot bring profit. It follows from this that, in accordance with paragraph 12 of PBU 10/99, the costs of non-produced assets should be accounted for on sub-account 91.2 as non-operating costs.

Reflection of legal entities in accounting

Let's first consider the features of documentation in the first approach.

As a general rule, the repayment of fixed assets is carried out by accruing depreciation. But since non-produced assetsare not directly related to production, depreciation should be charged to other expenses, reflected in the subaccount. 91.2 "Other expenses and income".

The period of useful operation of an object for depreciation is set by the enterprise upon receipt of property, in accordance with the requirements of the OS Classifier. Since we are talking about fixed assets for non-production purposes, the amount of VAT is not deductible, but is attributed to other costs. In this case, the accountant generates the following entries:

• Dt sch. 91 subaccounts 91.2 Ct 19 - the amount of VAT is included in other expenses.
• Dt sch. 91 subaccounts 91.2 Ct 02 - the depreciation rate is included in other expenses.

This option, as practice shows, suits the inspectors of the Federal Tax Service.

According to a number of experts, on the basis of sub. 1 p. 1 art. 264 of the Tax Code, such a tax may well be included in the costs taken into account by an economic entity when taxing profits.

Explanations of the Ministry of Finance

Confirms the possibility of accounting for non-produced assets as part of fixed assets letter of the Ministry of Finance No. 03-06-01-04/209 dated 2005-21-04. The agency proposes to use labor law norms to justify the inclusion of information about legal acts on the account. 01.

The Ministry of Finance gives its explanations using an example. The letter addresses the issue of the possibility of classifying a microwave oven and a refrigerator as fixed assets. These objects, in fact, correspond to the characteristics of fixed assets, since their useful life exceeds 12 months. The determining moment in deciding on the rules for accounting for this property is the presence in the collective agreement of a clause on the working conditions of personnel. Items that are acquired in order to implement the provisions of this agreement are considered fixed assets. This conclusion was made by the Ministry of Finance on the basis of Art. 163 TK. The employer is obliged to create working conditions for the personnel that meet the requirements for labor protection and safety.

In addition, the agency notes that if the collective agreement provides not only for the provision of food for employees, but also for the provision of, for example, a microwave oven or a refrigerator, then these objects will be recognized as fixed assets.

More case studies

Of course, in addition to a microwave oven and a refrigerator, other non-produced assets can be used at the enterprise. The possibility of including them in the OS depends mainly on the ability of management to justify their "production and management" purpose.

In judicial practice, there are cases when the costs of depreciation of curtains with lambrequins, a sofa, a table, an armchair, curtains are recognized as management costs. Taxpayers justify the decision to include them in the OS by the fact that these items were directly involved in the activities of the organization. And the work of the company, in turn, consisted of information services, advising on commercial issues, conducting marketing research, analyzing the effectiveness of the functioning of the oilcomplex.

Accounting as non-operating expenses

If you use the second approach to reflecting legal acts, then the accountant makes the following entries:

• Dt sch. 91 subaccounts 91.2 Kt c. 60 - reflects the cost of acquiring non-production property.
• Dt sch. 19 ct sc. 60 - input VAT included.
• Dt sch. 60 Kt sc. 51 - payment of legal acts.

VAT reflection options

The methods of tax accounting depend on the occurrence of the object of taxation. As the Federal Tax Service explains in its letter No. 03-1-08 / 204 / 26-В088 of 2003, if the transfer of non-production property is not related to the formation of the base, then VAT should be taken into account on the subaccount. 91.2 "Miscellaneous costs". The result is a record:

Dt sch. 91 subaccounts 91.2 Kt c. 19 - write-off of input VAT.

If the resources intended for the own needs of the enterprise are transferred to its structural divisions, then the situation is twofold. So, on the one hand, there will be a taxable turnover:

Dt sch. 91 subaccounts 91.2 Kt c. 68 - the amount of VAT was charged on the transfer of property (services, works) for own needs.

On the other hand, the payer has the right to present the tax amount for deduction:

Dt sch. 68 ct sc. 19 - VAT amount accepted for deduction.

The Ministry of Finance adheres to the same tax accounting position in letter No. 03-03-04/2/9.

A few more words about tax accounting

Above, we have partially de alt with the reflection of information on taxation. However, let'sLet's turn to the norms of the Tax Code governing accounting.

Referring an object to one or another group affects 3 taxes: VAT, income taxes and property. Obviously, the occurrence of obligations for the last deduction directly depends on the procedure for recognizing an object in accounting. But what happens to income tax?

According to paragraph 49 of Art. 270 of the Tax Code, expenses that do not meet the criteria of paragraph 1 of Art. 252 of the Tax Code, cannot be taken into account. They are not taken into account, for example, if they are not economically justified.

At the same time, depreciable assets and fixed assets are understood as objects used as means of labor for the production and sale of products (provision of services, performance of work) or for enterprise management. Therefore, in tax accounting, the recognition of an asset will also depend on the justification for the need to use it in financial and economic activities. Here you can also refer to the norms of the Labor Code, which provide confirmation of the expediency of expenses aimed at creating proper working conditions for personnel. In addition, arguments about management or representation costs can be used.

It is worth saying that if the economic feasibility of spending on non-produced assets is confirmed by the need to create proper working conditions, the enterprise will not increase "salary" taxes. Sad but true.

Non-produced assets in budget accounting

There are several other types of property that belong to the category we are considering. For example, in a government agencya non-produced asset is land or another natural resource.

It can be accepted for balance in case of purchase, donation, transfer for use or operational management, as well as in case of detection of unaccounted objects during the inventory.

In case of gratuitous transfer of NLA to a state authority, municipal or state institution, an act is drawn up. It comes with an inventory card. In case of intradepartmental transfer, an order (decision) of a higher body or founder is drawn up, an act and an invoice are formed. In case of disposal of NPA, the primary documents for write-off are the contract and the act of acceptance and transfer.