Instruction

1

Before proceeding to the calculation of the average annual value of fixed assets, please note that distinguish them initial, restorative and residual value. The initial cost reflects the level of cost associated with the acquisition or creation of fixed assets. The initial cost in operating a property does not change, except in cases of completion, reconstruction or partial liquidation. The replacement cost corresponds to the cost of acquisition or the creation of similar fixed assets in the market conditions. To determine the replacement cost of the swipe revaluation of fixed assets adjusted for inflation or market prices. Residual value is the initial (replacement) value less depreciation.

2

You have to understand that the calculation of the average annual value of fixed assets is a necessity, due to changes in their physical and money values in the course of the year. The company may purchase new equipment and write off worn out. Therefore, the initial value of fixed assets at the beginning of the year will differ from their initial value at the end of the year, which you can calculate as follows:

With the first (K. G.) = first (n) + intr – SEL, where the first (K. G.) – the initial value of fixed assets at year end; With the first (n) – initial value of fixed assets at the beginning of the year;] the value of fixed assets commissioned during the year; the cost eliminated during the year fixed assets.

With the first (K. G.) = first (n) + intr – SEL, where the first (K. G.) – the initial value of fixed assets at year end; With the first (n) – initial value of fixed assets at the beginning of the year;] the value of fixed assets commissioned during the year; the cost eliminated during the year fixed assets.

3

The average annual value of fixed assets you are able to calculate in multiple ways. The most simple of them is the definition of half-sum of residues of fixed assets at the beginning and end of the year:

With CP = (first (n) + is (CG))/2.

Calculation by this method yields not very accurate results because the input and disposal of fixed assets during the year is uneven.

With CP = (first (n) + is (CG))/2.

Calculation by this method yields not very accurate results because the input and disposal of fixed assets during the year is uneven.

4

For a more accurate calculation use the following formula:

With SR = first (n) + M1/12 x type – M2/12 x SEL, where M1 and M2 – the number of full months from the time of acquisition (disposal) of fixed assets.

With SR = first (n) + M1/12 x type – M2/12 x SEL, where M1 and M2 – the number of full months from the time of acquisition (disposal) of fixed assets.

5

The most reliable method is the calculation of the average annual value of fixed assets according to the formula of the average chronological:

With CP = [ (C1 (n m) +S1 (K. m))/2 +(C2 (n m) +C2 (K. m))/2...+(CI (n m) +CI (K. m))/2]/12, where CI (n. m.) – the cost of each fixed asset at the beginning of the month, CI (K. M.) – the cost of each fixed asset at the end of the month.

With CP = [ (C1 (n m) +S1 (K. m))/2 +(C2 (n m) +C2 (K. m))/2...+(CI (n m) +CI (K. m))/2]/12, where CI (n. m.) – the cost of each fixed asset at the beginning of the month, CI (K. M.) – the cost of each fixed asset at the end of the month.

# Advice 2: How to determine the average value of the property

The basis of the average cost required to determine the property tax. Organizations and private entrepreneurs at the end of the calendar year must submit to the regulatory authority tax returns. According to article 375 of the Tax code of the Russian Federation (TC RF), the average or middle

**value**of immovable**property**calculated as determined by its tax base. In turn, the calculation of the tax base explained in article 376 of the tax code.You will need

- - the tax code of the Russian Federation;
- - financial statements for the year

Instruction

1

To determine the average value of the real

**property**list all real estate owned on the balance sheet of the organization as assets. The average annual**value**of immovable**property**calculated for each object. If the organization has separate divisions, the average annual**value**of immovable**property**is determined separately for them.2

In the calculation define

**the value****of the property**for the tax period. Those who first taken for the calculation of the average annual value**of the property**, often confuse the tax period of reporting, which leads to errors. St. 379 NC indicates that the fiscal period is the calendar year (12 months) and the reporting periods are first quarter, first half and nine months of the calendar year.3

To determine the average value of real

**property**take the residual**value**of each object contained in the accounting data of the organization. According to Chapter 30 NK the Russian Federation, to determine the average annual**value****of the property**for the tax period must be added the residual**value**(OS) of each object of immovable**property**on the first day of each month of the tax period and on the last day of the tax period. Example: average**value****of property**in 2011 will be the value**of the property**on 1 January, 1 February, 1 March, 1 April, 1 may, 1 Jun, 1 Jul, 1 Aug, 1 Sep, 1 Oct, 1 Nov, 1 Dec and 31 Dec.4

As a General rule of tax accounting, the number you divide by the number of months in the tax period (because the tax period is a year, then their number is equal to 12) is increased by one. The General formula for calculating the average value

**of the property**as follows:(OS 1 Jan+OC1 Feb+ Mar OC1 + OC1-April, may, OC1, OC1 June, July, OC1, OC1 August September OC1, OC1 Oct, Nov OC1, OC1 Dec and ОС31 Dec) : (12+1)