How to reflect depreciation in the balance

Any property over time is subject to wear and, therefore, in accounting for fixed assets and intangible assets existing on its balance sheet, and depreciated. In the financial statements is recorded under the relevant articles of non-current assets by reducing the total cost of the property in the amount of wear.

You will need

• - PBU 6/01 "Accounting of fixed assets";
• - PBU 14/2007 "Accounting of intangible assets".

Instruction

1. When reflected in the balance sheet depreciation use of PBU 6/01 "Accounting of fixed assets" and PBU 14/2007 "Accounting of intangible assets". Its charge can be made by one of the following:
   
   - linear;
   - declining balance;
   - write-off of cost on the sum of the numbers of years of useful use;
   - write-off of cost is proportional to the volume of sales.
2. In accounting transactions with fixed assets are maintained on the same account 01, and their depreciation on account 02. Create the turnover balance sheet on accounts, calculate the difference between the debit balance of account 01 and credit balance of account 02. Specify the obtained value in the balance line 1130 "fixed assets".
3. If your company rents the property to rent, consider it wear and tear on the subaccount "depreciation of property provided for temporary use" and do not reduce the value of fixed assets in the balance sheet.
4. In addition, there is a special group of non-current assets accrued depreciation unfinished construction objects of the real estate reflected in the account 08 "Investments in non-current assets". If your organization has actually finished the construction works and start operation of a building or structure, write off the depreciation amount to the credit of account 02 in the debit account 08 regardless of the registered ownership of or not. Specify the value of the subject property less depreciation in plant and equipment at line 1130 of the balance sheet.
5. When reporting the amortization of intangible assets then make the string balance 1110 the difference between the debit balance of account 04 "Intangible assets" and the credit balance of account 05 "depreciation of intangible assets". In addition, you can set the order of depreciation without using account 05. To do this, check the corresponding paragraph in the order on accounting policies. In this case, the depreciation charge of the intangible assets account 04, and in the formation of the balance point in the line 1110 a debit balance account 04.