Advice 1: How to determine the fixed asset group

Fixed assets – is part of the property of the organization that is used over a long period of time (longer than 12 months) for manufacturing products, performing works or rendering services, as well as management purposes. A set of property, plant and equipment of similar technical characteristics, purpose and method of use is groups of fixed assets.
How to determine the fixed asset group
When assignment of an object to a fixed asset, check whether it has the following features:
- the ability to bring the company economic benefits in the future;
the organization does not intend to resale the property;
- used for a long period of time (the duration of use exceeds 12 months or one operating cycle, lasting over 12 months). If property accepted for accounting corresponds to the above symptoms, then it should be reflected in the accounts of fixed assets.
You should know that all fixed assets are divided into groups, each of which correspond to distinctive features.

1. The building is an architectural and construction elements that create the necessary conditions for the implementation of production activities, storage of material values and also used for managerial and non-production needs.

2. Structures is engineering structures dedicated to technical service functions of the production process, but not associated with changes in the items of work (tunnels, drains, overpasses, etc.).

3. Transmission devices are devices through which energy is transferred in various types, as well as liquid and gaseous substances (heating network, gas network etc.).

4. Machinery and equipment, including:
power machines and equipment for generation and distribution of energy;
- working machinery and equipment directly involved in the production process;
measuring and control instruments and devices;
computing and electronic engineering.

5. Vehicle.

6. Tools – the means of labor involved in the production process for more than 1 year.

7. Production tools and household utensils, which are used to perform manufacturing operations and create safe conditions of work (workbenches, desks, etc.).

8. Household equipment, which provides conditions for the work and the function of service production (photocopiers, office furniture, etc.).

9. Land and perennial plantings.

10. Working and productive livestock and other fixed assets.
Note that in accounting for tax purposes and depreciation all fixed assets are divided into 10 depreciation groups depending on their useful lives. The useful life is the period during which a fixed asset is able to serve the purposes of the organization. The first group relates to depreciation assets with a useful life of 1-2 years, the second – 2-3 years, the third – 3-5 years, the fourth – 5-7 years, the fifth – 7-10 years. The sixth depreciation group includes assets useful life which is 10 to 15 years, the seventh – 15-20 years, the eighth – 20-25 years, the ninth – 25-30 years, a tenth more than 30 years.
There are the following groups of fixed assets (including in accordance with PBU 6/01[2]) Each company has in its possession the fixed and current assets. A set of fixed production assets and circulating assets of the enterprises forms of their production tools.
Useful advice
For the purposes of accounting and tax accounting applies the Classification of fixed assets included in depreciation groups (Approved by RF Government Decree from January 01, 2002 No. 1 as amended by 10.12.2010 ). The cost previously taken into account the OS, the operation of which is continued in the current year, not subject to revision

Advice 2 : How to determine depreciation group

All assets of the company are accepted for accounting, amortiziruemoe, ie wear out over time. Depending on term of useful use it is one of the depreciation groups. The useful life is the period during which the assets of the company are able to generate income.
How to determine depreciation group
The period for which the property is capable of serving the purpose of the company, determined alone due to the Tax code, which reglamentary the assignment of property to a particular depreciation group, and taking into account the classification of fixed assets.
All depreciable property belongs to a particular depreciation group. All of these groups of ten. So to the first depreciation group belongs the short-lived assets with useful lives ranging from one year to two years. The second depreciation group includes assets, useful life of which 2-3 years, the third – 3-5 years, fourth – years 5-7, the fifth – 7-10 years, the sixth – 10-15 years, the seventh – 15-20 years, the eighth – 20-25 years, the ninth – 25-30 years, a tenth more than 30 years.
The useful life of the company can set after you enter a fixed asset into operation and after reconstruction, modernization, technical re-equipment, if there is an increase in this period. However, to increase the useful life is possible only within the limits established for the depreciation group.
For intangible assets the useful life is determined based on the period of validity of the patent or the license to use the object. If the useful life is measured in that way is not possible, then the norms of depreciation are set for a period of 10 years.
The list of assets that are included in each of the amortization groups is strictly regulated by law. For example, the fifth depreciation group consists of property: buildings, excluding residential, the site of production coatings, heat mains, photographic equipment etc.
If the asset does not belong to any of the depreciation groups, the term of useful use it is defined on the basis of the technical conditions or recommendations of the manufacturer.
Is the advice useful?