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.
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.
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.
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.
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