Classification of fixed assets included in depreciation groups

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-17 18:37

Fixed assets are accounted for by each enterprise in accordance with applicable law. This property is subject to depreciation. To determine the useful life of each object, depreciation groups of fixed assets were developed. This approach allows you to correctly determine how long a particular object should be in operation. The features of this classification will be discussed further.

General definition

Property of the enterprise, which is subject to depreciation and belongs to the category of fixed assets, is divided into groups. Each of them determines the duration of the use of a particular type of asset. According to this classifier, depreciation groups of fixed assets are distributed according to their useful life. The object is put on the balance sheet on the basis of the relevant regulations. The company decides on its ownwhich category this or that object will belong to.

Such a concept as depreciation groups was introduced into accounting use in order to correctly calculate income tax. This allows you to keep accounting in accordance with the law.

The classifier of depreciation groups allows you to determine which group each specific object of fixed assets owned by the organization belongs to. This allows you to estimate the duration of the useful life in order to calculate depreciation, determine its rate. In this case, it turns out to perform the correct calculation of deductions to the depreciation fund.

Tax accounting involves the distribution of fixed assets into ten groups. They are sequentially distributed in ascending order of the useful life of the objects.

To determine which depreciation group a particular object belongs to, the accountant is guided by Government Decree No. 1 dated January 01, 2002, as amended on April 28, 2018. Here is a complete list of fixed assets and their belonging to each category. According to this document, the organization assigns a specific code to each unit of fixed assets, and independently determines whether it belongs to a particular category.

Classification from the first to the fifth group

Depreciation groups with decoding should be considered in detail in order to understand the basic principle of the distribution of such objects. Information for the convenience of perception is presented in the formtables.

Group	Description
First	This category includes fixed assets, the life of which is from one to two years inclusive. It can be any equipment with a short service life. The first group includes devices involved in production processes, characterized by rapid wear
Second	It belongs to objects with a useful life of two to three years. It can also be the relevant machines, units and devices, cars and trucks, tools that are used by workers in the course of their main activities. This category also includes plantings with a long growing period, pumping equipment for pumping various liquids
Third	Depreciation on such fixed assets is charged for a period of three to five years. This category includes devices for performing production tasks, structures and other objects with a corresponding wear period. It can also be means of communication of electronic type
Fourth	This category includes objects that wear out within five to seven years. These can be buildings, outbuildings and equipment of the appropriate class. This included working cattle, plantations with a long growing period. It can also be reinforced concrete fences,fences or other barriers
Fifth	A group of depreciation funds that have a useful life of seven to ten years. These are residential and non-residential buildings, cars, trucks, units, components and mechanisms. The fifth group includes tools, as well as fixed assets that were not classified in other categories. It can also be buildings belonging to the timber industry

Classification from VI to X groups

Followed by depreciation groups of fixed assets, which are characterized by the longest life. They wear out over a long period of time.

Group	Description
Sixth	This includes objects whose depreciation period is within 10-15 years. This category includes residential complexes and various buildings, cars, ships, and other types of transport with a long service life. Also here it is necessary to include tools and plantings with a long period of operation, as well as water wells.
Seventh	A group of depreciation funds that can be in operation for 15-20 years. These are buildings, equipment, vehicles and transportation that meet certain standards. This may be equipment with a long service life. This group also includes sewerage
Eighth	These are fixed assets that have been in operation for 20-25 years. This includes certain categories of buildings, as well as devices and machines for transporting goods and passengers, assemblies and mechanisms. These can be tools with a long service life, a product pipeline, a main-type condensate pipeline
Ninth	This category is reserved for fixed assets that become unusable within 25-30 years. Among other things, this includes pontoons and moorings, floating and river vehicles
Tenth	These are fixed assets that are characterized by the longest service life. This period is over thirty years and has no limit. This is a special category, which includes residential and non-residential buildings, various equipment that does not lose its qualities for a long time.

From this it follows that it is possible to determine belonging, for example, to the depreciation group of a car only on the basis of the relevant manufacturer's documentation. It clearly stipulates what the deadline for using the machine is. Such an object of vehicles may belong to different depreciation groups. Therefore, it is almost impossible to determine this on your own.

Features of determining the useful life

To determine which depreciation group an object belongs to, you will need to consider the established procedurecarrying out this process. It should be understood that the lower limit indicated for each group determines the number of months above the specified figure. For example, if it is said that for the third group the boundaries are within 3-5 years, then it includes fixed assets that wear out no earlier than three years. The upper bound always implies that this date is inclusive.

For the third group under consideration, the lower limit is determined at the level of three years and one month (thirty-seven months in total), and the upper limit is five years, or sixty months. Each category reflects the amount of time an object can wear out.

For example, the eighth group includes fixed assets that wear out within 20-25 years. It is within this period that the taxpayer can determine the period when it is necessary to decommission the asset and recalculate for the correct calculation of taxes.

The taxpayer independently determines the period of useful use of the object on the date of putting it on the balance sheet of the enterprise. At the same time, the recommendations given in the Decree are taken into account. The classification of fixed assets included in depreciation groups facilitates the task, allowing the owner of the object to correctly determine the useful life.

Classification

It is possible to determine which depreciation group should be assigned to a particular object using a special provision of tax legislation and in accordance with the current Classification. This facilitates the task that the enterprise solves during the commissioning of the facility, reducing the likelihood of making a mistake.

The classification of fixed assets is a table that includes the names of certain production assets that correspond to each category. The classifier code (OKOF) is also indicated here.

The current legislation has approved a table in which there are three columns. In the first one, the OKOF code is indicated, in the second one you can see information about the name of the objects of fixed assets. The third column provides clarifying information. This is a note that allows you to better understand which specific item of property, plant and equipment is referred to in the second column.

Within this table, all objects of fixed assets are classified into certain subgroups. This is necessary for a more convenient search for the desired object. Depreciation groups of fixed assets are divided into subgroups.

It is worth noting that in accordance with the tax legislation for the calculation of depreciation, the maximum allowable period for the use of fixed assets is not mandatory. Some objects may not wear out for more than thirty years. This period cannot be limited. Therefore, there is no upper limit of the permissible service life in the Classification.

However, according to the rules of tax legislation, the taxpayer is obliged to attribute the relevant asset to one of ten groups. Outside this classification, the facility cannot be operated.maybe. The company will have to write off the object within the time limit set by the selected group. But there is no upper limit when setting a deadline.

If the object is not in the classification

Although the above table quite fully discloses information about whether an object belongs to the depreciation group of fixed assets, the classification cannot cover the entire range of such property. Therefore, not all types of assets of the presented type can be found in the table.

Difficulties may arise in this case. What depreciation group corresponds to a particular object? To solve the problem, you will need to find the OKOF code that marks the property. This will determine the appropriate depreciation group. However, such code is not always present. In this case, the task becomes more difficult.

In this case, you need to act differently. To determine the useful life, you need to look at its technical documentation. Here, the manufacturer's recommendations regarding the period during which the object will become unusable should be indicated. This information is specified in the Tax Code. In accordance with the manufacturer's recommendations, terms and depreciation groups are determined.

In some cases, the information from the manufacturer required to put the object of fixed assets on the balance sheet is also missing. In this case, the company will not be able to resolve such an issue on its own. In the absence of a classifier of the main depreciation groups, informationmanufacturer, the useful life can be determined by the Ministry of Economic Development of the Russian Federation. The corresponding request is sent here, after the answer to which it will be possible to credit the object.

If the object was in operation

An enterprise can purchase an object of fixed assets that has already been in operation. In this case, depreciation groups also allow you to determine the useful life of the object. For such fixed assets, depreciation is charged on a straight-line basis. In this case, it is necessary to take into account the useful life. It installs in the usual way. In this case, it will be necessary to subtract the number of years or months during which the object was operated by another organization or user.

If the accounting department calculates depreciation using a non-linear method, the rate will not depend on the useful life. In this case, it will be necessary to determine to which category a particular property belongs. There is a simple rule here. The object will be assigned to the same group to which it belonged to the previous owner.

In some cases, it may turn out that the period of actual use of the object by the previous company is equal to the period defined in the Classification. Sometimes this period has even been exceeded. In this case, the new user independently sets the useful life of the object. At the same time, safety requirements and other important factors must be taken into account.

According to TaxThe Code of the Russian Federation grants the company the right to independently determine the period during which this or that property will be operated. But at the same time, the organization is obliged to document that the object subject to depreciation belongs to one or another group. This must be done based on the procedure carried out by the previous user after purchasing a new production asset.

Therefore, in the process of acquiring a used object, the company must request from the previous user an acceptance certificate (the form can be drawn up by the seller) or unified forms No. OS-1 or 1a. It can also be tax accounting documents maintained by the transferring party regarding a specific object, as well as other documentation that can confirm the useful life of the asset. Based on this, the object belongs to a particular group or subgroup.

Change in useful life

The useful life of an object can be changed, which will affect its belonging to the depreciation group. Therefore, in the process of improving the initial qualities of the object, the organization must reflect such changes correctly. The useful life of fixed assets can be increased or decreased. In the first case, this is possible in case of completion, reconstruction, re-equipment or modernization of the facility.

In some cases, the useful life may be reduced. This is due to some features of the use of fixed assets or inif the fact of obsolescence of the unit is established.

It is worth noting that in such cases, changes in the useful life can only be made within the group to which the object was originally assigned. You cannot transfer it to another group. This is the basic rule that the company must comply with. This feature must be taken into account when placing property on the parish. It is necessary to determine in advance in what time intervals it will be possible to operate the object.

Accounting

It is worth noting that the depreciation groups specified in the Classification cannot be used for accounting purposes. This rule has lost its force since January 1, 2017.

For this reason, in the process of organizing accounting, setting the useful life of objects, they rely on regulations. They were established for accounting.

When the useful life of an asset is determined, this information is displayed in the inventory card. It is started for each object of fixed assets. Cards are maintained in accordance with the established form OS-6.

Useful life in accounting

If an organization sets the useful life of an object on its own, it is guided by the provisions of PBU 6/01 p. 20 to reflect the relevant information in accounting.

In this case, the duration of the expected operation of the object is set as follows:

• The expected usage period is taken into account,which depends on the expected capacity, performance of the asset.
• The expected physical wear and tear is also taken into account. This characteristic depends on the number of shifts at the enterprise, environmental conditions, the influence of aggressive substances, as well as the fundamental principles of repair. Other factors may also be considered.
• Taking into account, among other things, regulatory and legal, other restrictions that regulate the life of fixed assets. For example, it could be the lease term.

Based on this information, the object is displayed in accounting in the process of its posting.