2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Fixed production assets are a certain part of the property of the company, which is reused in the production of products, performance of work or provision of services. OS are also used in the field of company management. The duration of their use is more than 12 months. Let's take a look at the main assets. OS examples will also be given in the article.
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Fixed assets include:
- Constructions and buildings.
- Power and working installations, equipment, machines.
- Computer technology.
- Regulating and measuring devices and instruments.
- Vehicles.
- Tools, household supplies and inventory.
Fixed assets also include perennial plantations, breeding and productive livestock and other funds.
Wear
Fixed assets include those objects that, during the period of their use, generate income for the enterprise or serve to achieve the goals of itsactivities. During operation, the OS is subject to wear. It can be moral or physical. The first involves the loss of the value of objects due to the development of scientific and technical progress and an increase in labor productivity. With active work or under the influence of natural factors, physical wear occurs.
Accounting
Everything related to funds should be accepted into the enterprise at historical cost. It is the sum of the actual acquisition costs. An inventory object, including all its accessories and fixtures, or a structurally separate separate item, acts as a single OS accounting. The enterprise has the right not more often than once a year to conduct a revaluation of fixed assets at the replacement cost.
Depreciation
Repayment of the cost of fixed assets is carried out by transferring it to the performance of work, products or the provision of services. By subtracting the depreciation amounts for the entire service life from the initial price, the residual value is obtained. Today, payments can be made in three ways:
- Linear. In this case, the annual depreciation amount is determined based on the original price and the rate calculated taking into account the useful life of the object.
- Decreasing balance. In this case, the residual value at the beginning of the year and the depreciation rate calculated taking into account the useful life of the item are used.
- Write-off by the sum of the numbers of years in accordance with the original price and the annual ratio. ATthe numerator is the number of years left until the end of the operating period. The denominator includes the sum of the numbers of years over the entire service life.
Restoring objects
It can be carried out by simple and extended reproduction. The first is a major overhaul and replacement of the OS. Expanded reproduction is carried out in the form of new construction, modernization, technical re-equipment, reconstruction. With a simple recovery, the OS does not change its quantitative and qualitative characteristics. In the case of expanded reproduction, fixed assets are filled with new content. Reconstruction and upgrade costs may increase the original price of the OS.
Disposal
It can happen in many ways:
- Due to wear and tear (physical/moral) or cessation of use in accordance with the intended purpose.
- On sale.
- When donated.
- Due to liquidation in emergency cases.
- When transferred to the authorized capital of other enterprises in the form of a contribution.
The cost of objects that are retired or not used permanently should be deducted from the balance sheet.
Fixed asset ratios
Specific indicators are used to control the movement of fixed assets. Among them:
- Update factor. It represents the cost of objects newly commissioned by the enterprise during a given period, divided byon the price of fixed assets present in stock by its end.
- Admission rate. It is calculated as the ratio of the value of fixed assets received by the enterprise to the price of funds at the end of the period.
- Retirement rate. It is the value of the funds debited from the enterprise during the year divided by the price of fixed assets on hand at the beginning of the period.
- Growth rate. It is calculated as the sum of fixed asset growth divided by the value of funds at the beginning of the year.
- Intensity of update. It is found by dividing the value of retired fixed assets during the period by the price of funds received.
- Liquidation rate. It is calculated as the ratio of eliminated funds during the year to the cost of fixed assets at the beginning of the period.
- Replacement ratio. It is equal to the value of liquidated funds divided by the price of new fixed assets received.
PBU
In accordance with the Accounting Rules, fixed assets include assets if they:
- Used in the production of products, provision of services, performance of work, or for managerial purposes.
- Operated for more than a year.
- Will bring profit to the company in the future.
- Will not be implemented soon.
Fixed assets - capital for measures to radically improve the land (irrigation, drainage and other reclamation works), investments in perennial crops are included in the accounting in the amount of expenses related to the areas accepted for operation, regardlessfrom the completion of the whole complex of actions. If the object consists of several parts, the service life of which is different, it is necessary to take each of them separately. Land plots and natural resources owned by the enterprise also act as fixed assets (examples: a reservoir, minerals, etc.).
Fixed asset transactions
OS are accepted for accounting during their construction, acquisition, manufacture, contributions to the account by the founders, receipt under the terms of a donation agreement and other receipts. The value of the funds is not subject to change, except as provided by law and PBU 6/01. If the company decides to perform an additional assessment of fixed assets, then it must be done annually. At the same time, the initial price of the funds increases. The postings for fixed assets in such cases are as follows:
- db ch. 01 Cd count. 83;
- db ch. 83 cd sc. 02.
When revaluing, thus, simultaneously with an increase in the initial price, the amount of depreciation charges increases. According to the results of the markdown, the cost of fixed assets decreases accordingly:
db ch. 83 cd sc. 01
Depreciation deductions are also decreasing:
db ch. 02 Cd count. 83
If there is insufficient additional capital to cover the markdown, the difference in excess of the amount of past revaluations is subject to write-off at the expense of own income. It refers to c. 84:
- db ch. 84 cd. sch. 01;
- db ch. 02 Cd count. 84.
Thus, when revaluingFixed assets on account 01 will be taken into account the replacement cost of funds. Decrease/increase of the initial price is included in the additional capital of the enterprise.
Free receipt
In this case, fixed assets should be taken into account at their market value on the date of posting. Such an instruction is present in clause 3.4 of PBU 6/01. The costs of delivery of funds accepted free of charge are taken into account as capital costs and are included by the recipient enterprise in the increase in the initial price of the objects. These expenses are reflected in the corresponding capital investment accounts in correspondence with settlement items. When a company purchases vehicles on a gratuitous basis, tax is not charged on them. The input of accepted objects is carried out in the usual manner. The account is debited. 01 and credited with c. 08. According to the law, the host enterprise must pay income tax (24%, except for the TS). In this case, the account is debited. 99 and credited with c. 68. In the course of depreciation, the profit of the coming periods should be included in the non-operating income of the part of fixed assets received free of charge.
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