You will need

- - the formula for calculation of the average annual value of fixed assets - FSR = Op(b) + (FW*FM)/12 – [FL (12 – M)]/12 , where RUB:
- SDF – average annual value of fixed assets;
- FP(b) – initial (book) value of fixed assets at the beginning of the year;
- FW – the cost of these new funds;
- World Cup the number of months of functioning introduced fixed assets;
- FL – liquidation value;
- M – number of months of operation of the disposed fixed assets.
- data trial balance account 01"fixed assets" for the year and for each month of the year.

Instruction

1

Determine the initial carrying value of fixed assets at the beginning of the year, taking the balance at the beginning of the period trial balance account 01.

2

Analyze whether introduced for counting the period of any fixed assets and in what month. To do this, review the turnover on the debit of account 01 and determine the value of introduced assets. Count the number of months of operation of these assets in the billable period.

3

Multiply the value entered in the action of a fixed capital on the number of months of service in the billing period. Divide this number by 12, you get an average annual value of fixed assets, put into operation.

4

Examine whether the balance sheet for the year assets and in what month. To do this, review the turnover on the credit of account 01, and then determine the value of the retired fixed assets. If during the year there was a disposal of fixed assets, count the number of months of operation of these assets in the billable period.

5

Multiply the value of the retired fixed assets on the difference between the number of months in the year and the number of months of operation of the retired fixed assets. Divide this number by 12, you get an average annual value of the retired fixed assets.

6

Calculate the average annual value of fixed assets. To do this, fold the initial carrying amount of fixed assets at the beginning of the year and the average annual value of fixed assets, put into operation, and subtract from the resulting amount the average cost of the retired assets.

Note

The correct assessment value of fixed assets determines the validity of the analysis of the level of efficiency of their use and allows you to make more accurate management decisions.

Useful advice

If during the year it was commissioned, or retired some fixed assets in different periods, the average annual cost of enacted or disposed of fixed assets calculate separately for each asset, depending on the duration of its use during the year, and then total the results.

# Advice 2 : How to determine the carrying amount

Under balance sheet

**valueth**refers to the value of tangible and intangible assets, on which they are recorded. In other words, the value of the property, which is reflected in the balance sheet. For a more accurate reflection of the carrying amount of amortisation is applied.Instruction

1

The property can be made on the balance sheet at cost and at replacement. The initial carrying value will include the cost of acquisition, construction, commissioning of new production or non-production assets.

2

Replacement cost means the cost of acquisition of property at market prices on a certain date. If the amount of the original value is defined as the set of costs, the replacement cost is calculated based on the analysis of the average market price. Replacement cost is often corrected as a result of revaluation.

3

The carrying amount is constantly being updated, due to the fact that the assets of the company wears off, ie, take into account its depreciation. Therefore, the carrying amount of an asset is determined as the difference between the initial

**value**adopted for the balance of the property and the amount of accrued depreciation.4

The need to determine book value takes place in joint-stock companies. If the transaction is associated with disposal or acquisition of property is more than 25 percent of the cost of carrying the property, it is considered large. The decision on such transaction is adopted by the Board of Directors or the General meeting of shareholders. In case of wrong definition of book value in this case, the transaction may be considered void.

5

It must be remembered that the carrying amount of the assets of the company shall be determined on the date of the transaction. In joint-stock companies quite difficult to get the balance at the interim date, because most of the action takes place at the end of the reporting period. Therefore, the Russian legislation provides for the determination of book value of assets for the purposes of making decisions about the size of the transaction, as of the last reporting date (month or quarter).

# Advice 3 : How to calculate the average annual value of fixed assets

The major funds are the property of the company that is involved in the production process many times, while retaining its natural shape and shifting the cost for the products in parts.

Instruction

1

Fixed assets are recorded in physical form. It is necessary to calculate the production capacity, planning of the production program. Core funds also have a valuation, which is necessary to determine their structure and dynamics, magnitude, attenuation, and efficiency.

2

All fixed assets taken on the balance sheet at cost. It includes the cost of purchase, transportation and installation of production assets. In the process of using fixed assets are revalued. Its meaning is to in the market to determine the value of the property at the moment. The difference between the initial or replacement cost and accrued depreciation – residual value of fixed assets.

3

In the process of activity of the enterprise is a continuous process of reproduction of fixed assets. Some of them newly commissioned, others are eliminated. Thus the receipt of fixed assets can be carried out by purchasing for a fee, new construction, lease agreement, gratuitous receipt, etc. are Liquidated fixed assets due to physical or mental deterioration.

4

In the evaluation of fixed assets is determined as their average annual value, which is calculated as follows:

OF CP = OF ng + OF type*n1/12 OF assh*n2/12, where

OF ng - the value of fixed assets at beginning of year

Type of OF cost of fixed assets introduced during the year,

OF SEL - value of the retired during the year fixed assets

n1 - the number of months of use imposed fixed assets,

n2 - the number of months during which the retired fixed assets was not functioning.

OF CP = OF ng + OF type*n1/12 OF assh*n2/12, where

OF ng - the value of fixed assets at beginning of year

Type of OF cost of fixed assets introduced during the year,

OF SEL - value of the retired during the year fixed assets

n1 - the number of months of use imposed fixed assets,

n2 - the number of months during which the retired fixed assets was not functioning.

5

There is another method of calculating the average value of fixed assets.

OF SR = ((GF ng + OF kg)/2 + OF months)/12, where

OF ng - the value of fixed assets at beginning of year

OF kg to the cost of fixed assets at the end of the year

OF the Messiah – the value of fixed assets at the beginning of each month.

OF SR = ((GF ng + OF kg)/2 + OF months)/12, where

OF ng - the value of fixed assets at beginning of year

OF kg to the cost of fixed assets at the end of the year

OF the Messiah – the value of fixed assets at the beginning of each month.

# Advice 4 : How to find the average annual value of fixed assets

The transfer value of fixed assets on finished goods is carried out for a long time, which may span several production-technological cycles. In this regard, asset accounting is organized so that you can reflect at the same time preserving the original shape and the gradual loss of value. One of the most important indicator is the average annual value of fixed assets.

Instruction

1

Determine the original cost of fixed assets at the beginning of the year. This value reflects the actual expenses for the creation or acquisition of the asset. When calculating this value takes into account the cost of acquisition of equipment or other fixed asset object, the cost of the installation work, the cost of shipping and other costs associated with the introduction of object in operation. Next, you adjusted the original cost by the amount of depreciation for the asset to get the figure at the beginning of the current year.

2

Calculate the value of fixed assets, which were introduced and withdrawn during the year at the company. When the facility is taken into account in the initial cost, and at the conclusion take into account the value adopted in the current month on the balance. Editing the initial value of the asset at the beginning of the year on the value of the input and output OS during the year, receive an initial value at the end of the year.

3

Use the simplified formula for calculating the average value of the OS. You need to add the initial cost at the beginning and end of the year and divide the sum by 2. This calculation gives an approximate result, so often use more complex formula.

4

Consider the month of the input and output of fixed assets when calculating the average value. To do so, adjust the value entered and left the OS on the number of full months that have elapsed since the insertion and introduction of the object, divided by 12.

5

Then fold the initial value at the beginning of the year revised cost of these new OS and subtract from the amount, the new value of the retired asset. However, the most accurate average value can be obtained if to take into account in the calculation of an average value, which is defined as the arithmetic mean value at the beginning and at the end of the month.