Instruction

1

Depreciation is taken in count if the carrying value of property exceeds 10,000 rubles. Carrying amount – the cost of acquisition and cost of bringing it to working condition net recurrent taxes such as VAT. Calculation of depreciation of fixed assets begins with the first month following the month of purchase.

2

The amount of depreciation depends on the initial value of fixed assets, the expected life of the equipment and the depreciation rate.

3

Depending on the intended service life (from 1 year and more than 30 years) fixed assets classified according to 10 major groups. The specific life of a particular equipment, based on classification data, the enterprise sets on their own.

4

Distinguish between depreciation linear and nonlinear method. In accounting, the second method does not apply because of the greater complexity, therefore, the purpose of accounting is used, only the linear method. Nonlinear method can only be applied in tax accounting.

5

Depreciation the straight-line method under the formula: K = (1/n)*100 where To is the monthly depreciation percentage, n is the useful life of fixed assets.

6

Example: you calculate depreciation on cutting machine cost 140 thousand rubles, purchased in July. According to the classification of fixed assets, metal cutting machine 5 refers to the group with a life span of 7 years 1 month to 10 years. The company has established a useful life of 9 years (9 * 12 = 108 months).

7

Determined monthly depreciation rate. It is equal to 0,93% (1 / 108 * 100).

Thus, the monthly depreciation on cutting machine since August, will be 1302 rubles (140000*0,93%).

Thus, the monthly depreciation on cutting machine since August, will be 1302 rubles (140000*0,93%).

8

In the nonlinear calculation of depreciation apply the formula K = (2/n)*100.

In the first month of operation, the depreciation calculated from book value of the equipment, and all subsequent – from the residual value of the equipment, i.e. minus estimated depreciation.

In the first month of operation, the depreciation calculated from book value of the equipment, and all subsequent – from the residual value of the equipment, i.e. minus estimated depreciation.

9

Example: calculate the depreciation of a laptop value 36,000 rubles, purchased in January, nonlinear method. He belongs to the 3rd group according to classification of fixed assets. The service life is 3 years and 1 month to 5 years. The organization has established the useful life is 5 years (60 months).

10

The depreciation rate will be 3,33% (2 / 60 * 100). In February, the depreciation charges will be 1200 rubles (36000 * 3,33%). In March, depreciation will be 1158 RUB 84 kopecks (36000-1200)*3,33%. In April – 1120 RUB 25 kopecks (34800-1158,84)*3,33%.

11

Depreciation is calculated in this way for as long as the residual value of the laptop will not fall 8000 RUB. Then it is written off in equal installments beginning with the month following the month in which the residual value was 8000 RUB.

12

For example, in October, the residual value becomes equal to 7890 RUB, and before the end of useful life left 6 months. In this case, the monthly depreciation since November and till the moment of write-off of fixed assets would amount to 1315 rubles (7890/6).

# Advice 2: How to calculate depreciation of equipment

Under the

**wear and tear****of the equipment**mean the loss of its value and performance. It can occur due to many reasons: the aging**of equipment**, loss of competitiveness etc At the moment, using the latest technology, it is possible to achieve success in the fight against**wear and tear**, thus prolonged the service life**of equipment**, but still, this task remains highly relevant.Instruction

1

Describe and classify equipment. This work is the most difficult and time-consuming. It takes time and effort, as due to the fact that to use an existing database, such as Ledger account of fixed assets is difficult, because they were made completely different principles, i.e. there is no hierarchy of descriptions, there is no binding technical places, etc.

2

Inspect the equipment "live", although this leads to increased time costs. To do this, since the reconstruction and modernization changed its technological scheme, device, etc. Such changes do not always fit into technical documentation and the passport

**of the equipment**, or they are lost. Thus, in practice, it is not enough to only use technical documentation and passports**of the equipment**. The only way to solve this problem is to combine time-description**of equipment**and its repair.3

Define a hierarchy

**of equipment**, i.e. divide it into main, auxiliary, etc. The upper tier must correspond to the technological objects (elements of a technological chain), which carry out production. This is followed by separate units**of equipment**and then components and assemblies, of which they are composed.4

Define physical deterioration

**of the equipment**: describe and categorize the equipment of the technological chain of the plant; develop key indicators that characterize the state of the productive capabilities of the units**of equipment**; determine the weight required for calculation of the integral indicator of physical deterioration of units**of equipment**(determined by expert assessment); determine the current values of the main indicators and compare them with reference values; and hold a depreciating groups of similar**equipment**(**equipment**which produce the same product or technological operation); calculate the wear process chain, where on the basis of data about the actual wear on groups**of equipment**.Note

It should be noted that the method still has several disadvantages: high complexity of implementation and support to date database of equipment, normal operation of the system for tracking physical wear on these principles is virtually impossible without information systems, the possible erroneous conclusions when determining the physical condition of different groups of equipment.

# Advice 3: How to calculate depreciation

Fixed assets – this is one of the most important components of a company's assets. In the process of operation, they wear and there is a need in the write-off of depreciationas the original cost of fixed assets is reduced.

Instruction

1

Generally, depreciation is made on assets with a value of 10 thousand rubles and above, the useful life of which is more than a year. This takes into account the initial cost – the sum of all costs that the organization incurred on its acquisition, delivery and bringing to a working state (except VAT and other recoverable taxes).

2

Basic tools depending on term of useful use are divided into 10 depreciation groups. A more specific object service life, the company shall in its sole discretion.

3

Depreciation occurs linear and nonlinear method. In the first case, calculations are made according to the formula K=100/n, where K is the depreciation rate (measured in percentage) and n is the useful life of the facility. For those organizations that use a non-linear approach, the figure of 100 in the formula is replaced by 200, i.e. the formula is as follows – K=200/n.

4

Calculating the monthly depreciation rate, we need to charge an amount which is obtained by multiplying K on the price of the object. In the nonlinear approach for the cost of the equipment is adopted the residual value, i.e. the one that happened a month earlier, after writing off depreciation.

5

Both methods can be applied in tax accounting. Accountants only use a linear approach, because the second for them will be significantly more difficult.

6

For example, let's calculate depreciation for a machine for processing plastic. The organization acquired him in January for 135 thousand rubles. According to the classification of such a machine refers to the fifth group, which provides a useful life of 7 years and one month to 10 years. The company decided that the equipment will last 8 years (96 months). The depreciation rate in this case (using the linear approach) will be equal to 1.04% (K= 100/96=1,04). Multiply the cost of the machine on the depreciation rate ? 135000*1,04/100=1404 RUB. Thus, we get the amount should be written off each month.

7

Use in the same non-linear method. Then the depreciation rate will be 2.08 per cent (K= 200/96=2.08 per cent). In February, the amount of deductions will be 2808 rubles, and in March the project cost has decreased (13500-2808=132192). Hence,

**allocations**in March will be calculated from the price in 132192 RUB and it will be 2750.# Advice 4: How to calculate depreciation of fixed assets

Property accepted for accounting at the enterprise shall be subject to depreciation. The exception is non-depreciable property, which includes environmental facilities, construction in progress, working capital

**funds**, etc. There are several ways of calculating depreciation. At the core of each of them is the useful life of the facilities.Instruction

1

The useful life is determined in accordance with the classification of fixed assets. All the property is divided into 10 groups. Each of them has its own useful life, i.e. the period during which the property is able to bring profit to the company and to serve the purposes of its activities.

2

Depreciation can be calculated in a linear fashion. In this case, the annual amount is determined based on the original cost of a fixed asset and the depreciation rate, calculated on the basis of useful life. For example, the organization has purchased fixed assets worth 100 000 RUB. its useful Life 5 years, then the depreciation rate is 20 %. Therefore, the annual depreciation amount will be 20 000 rubles (100 000*20%).

3

In the calculation of depreciation method reducing balance annual amount determined on the basis of the residual value of the asset at the beginning of the reporting period, the depreciation rate and the acceleration factor. The latter is set by law for each type of property. For example, the company purchased equipment worth 100 000 RUB useful Life of 5 years. The depreciation rate is 20 %, but it will be increased to 40 % as the acceleration factor is 2. So for the first year of operation of the equipment depreciation will be 40 000 rubles In the second year it will be 40 % of the residual, i.e. 24 000 rubles (60 000*40%), etc.

4

Another way of calculating depreciation – the sum of the number of years of useful life. In this case, the depreciation amount for the year is determined on the basis of original cost of the property ratio, the numerator of which is the number of years remaining until the end of the object, and the denominator is the sum of the numbers of years. For example, the company acquired assets with a cost of 100 000 RUB. a useful Life of 5 years. The sum of the numbers of years will be 15 (5+4+3+2+1). Respectively, for first-year depreciation will amount to 33 333,33 RUB (100 000*5/15) in the second year 26 666,67 roubles (100 000*4/15), etc.

5

In the method of calculation of depreciation proportionally to the volume of production calculation is based on physical indicators and the ratio of the estimated volume of production for the useful life. For example, the company purchased a car worth 200, 000. Estimated mileage for the entire period of useful use of 500 thousand km In the first year the car drove 10 thousand. Therefore, the annual depreciation amount will be 4, 000 (10/500*200 000).

# Advice 5: How to calculate depreciation straight-line method

Depreciation is a mandatory procedure under the tax laws. Under depreciable property means all assets of the company and the results of intellectual activity that belong to him by right of ownership and used to obtain economic benefits.

Instruction

1

Depreciation of property can be charged in a linear

**way**. It implies the calculation of depreciation based on the original cost of a property object and the depreciation rate established in accordance with the useful life of the asset.2

The useful life is the period during which a fixed asset can bring to the enterprise income or serve for the purposes of its activities. The useful life is determined in accordance with the Classification of fixed assets established by the legislation. All the property is divided into 10 depreciation groups, each of which is assigned its own useful life.

3

The useful life is established by the organization at the time of acceptance of object to accounting yourself. It is based on the expected productivity or capacity of an object, the expected physical depreciation depending on operation conditions and corrosive environment, regulatory restrictions on the use of the object, for example, the term of the lease.

4

If originally adopted by the regulatory performance of the asset has improved as a result of modernization or reconstruction of, the company to reassess the useful use on this object.

5

Consider the example of straight-line depreciation

**method**. The value of the property issued by the company to the account, 200, 000. In accordance with the classification of fixed assets given object belongs to the third depreciation group, which corresponds to the useful life of 3-5 years. Companies established useful life of 5 years. Accordingly, the annual depreciation rate will be 20 % (100 %/5 years). Then the annual amount of depreciation will be 40, 000.(200 000*20%/100%). Consequently, the monthly amortization amount will be equal to RUB 3333,33