The property is made on the balance sheet at replacement and original cost, which includes all costs of acquisition, construction and commissioning of assets, both productive and non-productive. Summarize all of the known costs and add them to your additional calculations.
Include in the replacement cost of the acquisition costs of the property for a certain market price in a certain period of time. If the original cost you will have to determine the sum of all expenditures, rehabilitation, consider average prices in the market. Periodically adjust the generated report.
The recovery value is determined by experts based on market prices, and using the coefficients of inflation. The cost is considered to be restorative if it is determined in the result of revaluation of funds, which by decision of the Russian government. If necessary, use the services of professional accountants or regularly explore the market price, relating to the scope of activities of your company.
Do not forget to specify the carrying value taking into account depreciation of the assets in the company (depreciation). The value of assets – the difference between the original cost of the property, which was adopted on the balance sheet, and depreciation.
Remember that the book value is determined by the date of the transaction, this is especially true for joint stock companies, in which most operations are performed at the end of the reporting period, which complicates the formulation of the balance. Russian law provides for the fixation of the carrying value of assets based on the purpose of making decisions about the size of the deal at the last reporting date.
The transaction, which is more than 25% of the entire balance of the property is considered large and the decision on it was adopted by the shareholders or Directors. In that case, if the carrying amount is determined incorrectly, the transaction will be void.
Compare the asset's carrying amount and the carrying value of alienate property, if we are talking about the transaction. Compare them at the time of transaction, not at the time of any dispute or a complete revaluation. The carrying value of property and assets of the entity is mapped, excluding assets of subsidiaries and affiliated companies or associations.