According to the legislation, the following methods of depreciation in accounting can be used:
- write-off of the value by the number of years of the useful life;
- method of decreasing residue (linear);
- write-off of the value of funds in an amount proportional to the number of manufactured products.
Accounting and depreciation of fixed assets is performed in one of the ways for a group of similar objects throughout the entire useful life. Charges can be suspended when the fixed asset is found for modernization or reconstruction by decision of the management, as well as when the facility is mothballed for a period of more than 3 months.
When accounting for depreciation of fixed assets, determine the annual amount of deductions. Using the linear method, the calculation is performed taking into account the initial cost of fixed assets, determined at the beginning of the period and calculated based on the time of application of the depreciation rate.
Using the method of reduced balance, the residual value of fixed assets at the beginning of the reporting period (year) is taken as the basis for the calculation.
When the value is written off according to the sum of the numbers of years, the calculation is made based on the initial cost of the object and the annual ratio, in which the numerator represents the number of years remaining until the end of the life of the main asset, and the denominator is the sum of years (numbers) of the life.
When accounting for depreciation of fixed assets using the write-off method in proportion to the volume of work, the starting point is the indicator of the volume of work or production for the reporting period and the ratio of the initial cost of fixed capital and the estimated volume of work performed during the entire useful life of the fixed asset.
For fixed assets in the reporting year, depreciation is usually calculated every month in the amount of 1/12 of the calculated annual amount, regardless of the calculation method used. In seasonal production, this amount is evenly charged over the course of the company’s activities in the reporting year.
Of great importance for the enterprise is planning and accounting for the depreciation of fixed assets, since this makes it possible to calculate their volume for the future period, which will allow you to plan the cost of production and predict the financial results of the company.
The initial data for calculating depreciation are indicators of the value of fixed assets at the beginning of the planned period, long-term and annual plans for the implementation of fixed assets that come from other organizations and enterprises according to decisions made; depreciation rates; fund retirement data.
Accounting for depreciation of fixed assets and all calculations are made based on the capabilities of computer technology and accounting features. To do this, perform the following work.
Group fixed assets and determine their value in accordance with uniform depreciation rates. At the same time, depreciated means (vehicles, equipment and machines) with completely expired standard service lives are excluded.
Determine the average annual value of the total volume of fixed depreciable assets by inventory objects (groups).
They calculate the depreciation amount for each object or group, multiplying their cost by the appropriate rate, taking into account correction factors reflecting the actual operation of the means of labor.
For the planning year, the total depreciation for all fixed assets is determined by calculating the depreciation amounts calculated for all groups excluding depreciated funds that relate to equipment, machinery and vehicles.