Retirement of fixed assets

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

Accounting involves a lot of different operations with main, off-balance and other accounts. One of the main transactions is the write-off of fixed assets. It is carried out exactly with the guidelines, as well as other documents regulating the procedure.

Transport, facilities that belong to the category of fixed assets can be written off. To do this, they must be obsolete or technically worn out. Fixed assets are also liquidated if they are hopelessly damaged as a result of an accident, natural disaster, or incorrect operating conditions. Structures that are subject to reconstruction and destruction, as well as those that cannot be restored, are also written off.

Modern rules allow for the write-off of fixed assets, even if they are fit for work, but are not needed due to the termination of the corresponding production. This procedure is carried out even if it is not profitable and impractical, but there are certain specific reasons for this.

The write-off of fixed assets requires an order, inin which the owner (manager, director) of the disposed property declares the decision taken. It is not necessary to explain the reasons for this action. By order of the head, a special commission is created, which consists of persons using fixed assets. If the write-off of fixed assets is carried out regularly, there must be documents that can justify the reasons for the liquidation of a particular asset. The commission requires the presence of the chief accountant.

write-off is drawn up. It must be issued in duplicate. One document remains in the organization, and the other is transferred to the accounting department. The actions taken must be reflected in the accounting report.

The next operation is the write-off of tax debt. The main reason for such a procedure is the loss of the ability of the tax authority to recover the debt as a result of the expiration of the established period. For this, there must be a court order stopping the powers of the tax service due to the expiration of the debt repayment period. You also need to have a certificate from the tax office, which indicates the amount of debt. This type of write-off is not made without these basic documents.

Another type of accountingoperations is a write-off from an off-balance sheet account. The presented account contains those funds that are not the direct property of the organization. Write-off occurs if they become the property of the enterprise.