Before you write off the asset, the Manager must make an order about the future conduct of the Commission, which decides on the disposal or recovery of the asset. The Commission should include persons responsible for this car, the chief accountant and officials.
After that, those persons to inspect vehicles, establish the reasons that caused the cancellation, as well as identify the perpetrators. the Commission may establish the existence of the working parts or materials of the car, rating and the ability to use them in the future.
After verification, the responsible person make the act of writing off of fixed assets (form number OS-6), which make all information about written-off asset. After this document is signed by the Director.
In the case where the vehicles remain some components, they can re-capitalize. This is done through the account 10 "Materials", which is credited to the account 91 "other income and expenses". These reserves are accounted at market value.
When you write off vehicles in the accounting records are the following records:Д01 "fixed assets" subaccount "retirement" To 1 – decommissioned original cost of retired vehicles;
Д02 "depreciation" To 1 "fixed assets - charged depreciation amount for the retiring asset.
Д91 "other income and expenses" sub-account "Expenses" К01 "fixed assets" - reflected the residual value of the vehicle in other expenses.
Also in accounting need to reflect the amount spent on the elimination of the object. This information should be contained in the act to write off an asset in section 5. Д91 "other expenses" K70 "Calculations with the personnel on payment" and 69 "Calculations on social insurance and security" - reflects the amount spent on salary payment and social costs to employees engaged in the liquidation of vehicles.
In tax accounting amounts related to the elimination of vehicles is included in non-operating expenses. Income derived from liquidation, for example, the amount of scrap metal, are recognized as non-operating.