FinanceAccounting

An example of calculation of amortization by a linear method. Depreciation of fixed assets

At any enterprise in the process of work, fixed assets are used: buildings, production workshops, facilities for various purposes, power lines, overpasses, equipment, machine tools, road and air transport, as well as railway locomotives and wagons, ie, At production release, performance of various kinds of works or rendering of services. The service life of such facilities is more than one year. Without them, it is impossible to carry out productive activities, and the role of these funds can not be overemphasized. The article will deal specifically with these assets and what methods of calculation of depreciation are used today. In addition, we will present an example of calculation of depreciation by a linear method and consider all the details of the calculations performed, depending on the arising production situations.

Amortization: Definition

The property, and especially the fixed assets involved in the production process, always wears out, that is, they lose their original value. Therefore, you need to calculate the amount of depreciation, reducing the cost of the object. Legislation has developed a well-structured system of classifying various property units for certain characteristics, such as the useful life (SPI), ie, the time during which the object generates the company's revenue. For example, machines and equipment are depreciated faster than a building or other capital structure. Based on the time of productive use of the object, for each group of OS developed a strict time frame, at the end of which the value of the property is written off completely. Repayment of the value of property is called depreciation. Fixed assets are classified by technical characteristics, making up groups, for example, buildings and structures, power machines and equipment, etc.

The existing classifier of fixed assets delineates 10 groups on the principle of the duration of the SIP: the first groups include objects with less useful time, the latter with a longer one.

What objects are depreciated?

Legislators refer to the category of depreciable property objects, SPI of which is more than 12 months, and the cost when purchasing over 40 thousand rubles.

Not all OS objects can be considered depreciable. Leased fixed assets, land, environmental management, road and forestry facilities, water resources or perennial plantations are not depreciated.

Initial and residual value of the OS

Let's return to objects of property, to charge amortization on which it is necessary. So, knowing the initial price of the object and the value of accrued depreciation, the accountant gets the value of the object at the time of calculation. It is called residual. Make this calculation to the accountant every month - from this indicator directly depends on the property tax of the enterprise, illiterate calculation of which hits the company's profits and creates problems in the relationship with the tax inspection. Therefore, it is so important to correctly calculate depreciation for each object. There are linear and non-linear methods of calculating depreciation. Companies and organizations have the right to choose the method of calculating depreciation. In the accounting policy of the company, the application of the depreciation calculation method is fixed. The law establishes the right to switch from one depreciation method to another only once every five years.

Features of the linear method

This method is characterized by the accrual of depreciation for each object. Linear calculation of depreciation is most common. It is considered the most convenient not only among legislators, but also among accountants. Its essence consists in calculating the amount of depreciation from the initial value of the object, multiplied by the depreciation rate. Since this article is devoted to a linear method of calculating depreciation, we will consider it in more detail.

Amortization: calculation formula by linear method

We will notice that, irrespective of the method of depreciation established by the company, only linear method of depreciation applies to objects belonging to 8-10 groups of fixed assets under the Russian classifier. The basis of the calculation on a linear basis is the following formula: the product of the initial or revaluation (if reassessed) value and the depreciation rate set for this object, calculated as follows:

H = 1 / n * 100%, where n - SPI in months or years.

Example of calculation of depreciation by linear method

The company purchased and put into operation an object worth 180,000 rubles. SPI for the relevant classifier group OC - 5 years.

Option 1: Calculate the annual rate of depreciation :

H = 100% / 5 years = 20%, i.e. 20% of the cost should be written off each year.

In the amount of 180 000 * 20/100 = 36 000 rubles., I.e. for the year the price of the object is reduced by 36 thousand rubles.

The monthly rate is 36000/12 = 3000 rubles.

Option 2: monthly depreciation, calculation formula:

H = 100% / 60 months. = 1.6667

For a month the amount of depreciation was 180,000 * 1,6667 = 3000 rubles. So the amortization is linear.

Calculation features

Begin to accrue depreciation from the beginning of the month following the month of entering the object into the production process. For example, even if the property is acquired, and commissioning is dated March 1, then the depreciation should be calculated from April 1st. The same rules apply to objects received free of charge.

By the same principle, there is an end to the accrual of depreciation: from the 1st day of the month following the month in which the amount of depreciation equaled the original value of the object. There are other reasons for stopping the calculation of depreciation, for example, in the event of liquidation, disposal or conservation of an object in connection with a need that has arisen. Upon withdrawal from the canned condition (upon a written instruction of the company's management), depreciation of the OS is also accrued from the beginning of the month following the one in which the operation of the facility is resumed.

Suspension of the operation of the facility: how to calculate the wear

Let's remember the example of calculation of depreciation by a linear method and we will add it: the object was put into operation on September 25th. It means to charge the depreciation in the amount of 3000 rubles. The accountant will start from October.

Consider the situation where the asset is conserved for a certain period of time. Continue the previous example with the new operating conditions of the object. Due to unforeseen circumstances, the head of the company decided to suspend the participation of this facility in the production process, and he issues an order - to withdraw the object from the work process for 6 months, for example, from May 1 to October 31. In this case, the depreciation of equipment is suspended. The calculation is as follows: calculate the depreciation for April and make a break for 6 months. From November 1, the accrual of depreciation is renewed. It is important to remember that accrual of depreciation is made only during the operation of the facility, because only then it wears out. If the OS is idle, the accrual of depreciation is unjustified, and such situations should be documented - it is from these considerations that the non-engaged assets are preserved, and the depreciation of equipment, the calculation of which is presented in the article, is legitimate.

By the way, the object's SPI is extended for the duration of its inactivity. That is, the equipment commissioned on September 25, 2010 should be fully depreciated by October 2015. But since the object was mothballed, the time of its use is extended for a period of inactivity. In our case, the SPI will end in April 2016, that is, the depreciation of the OS will continue, and the last accrual of depreciation will be made in April 2016.

These are the basic charging rules. We hope that the example of calculation of depreciation by a linear method did not raise questions.

Similar articles

 

 

 

 

Trending Now

 

 

 

 

Newest

Copyright © 2018 en.birmiss.com. Theme powered by WordPress.