Accounting and valuation of fixed assets
Indicators of an assessment of fixed assets have key value in the analysis of economic activities of any company. This is because operating systems act as one of the most important production factors.
Forming relationships in a market environment implies competition between different manufacturers. The winners in this fight are those who make the most efficient use of the available means. Undoubtedly, for the normal functioning of any company it is necessary to have certain sources of resources. On the basic production tools based on the work of the enterprise. These funds include equipment, machinery, structures, buildings and other objects involved in production operations. If they are not, the company will not be able to carry out its activities at all. The company should have a clear idea about each object and element that is part of fixed assets, about the features of their moral and physical deterioration and factors affecting their operation. This information is important when making various management decisions.In addition, it allows you to identify ways to most efficient use of production capacity. Competent assessment of the effectiveness of the use of fixed assets helps to reduce costs and increase productivity.
At each production should be carried out accounting and evaluation of fixed assets. The accuracy of information in the statements will depend on how correctly transactions with the operating system are reflected. For accounting purposes, a company must:
- Timely reflect in the registers and to document the receipt of the OS, their internal movement and disposal of production.
- Correctly calculate and fix the amount of depreciation.
- Accurately determine the results in the process of eliminating the OS.
- To control the cost of OS repair, their storage and operation.
The concept and valuation of fixed assets
OS is considered a part of the company's property, which is used in the manufacture of products, rendering services or performing work, as well as managing the company for more than 12 months or for an operating cycle lasting more than a year. This category does not include low-value and high-wear objects, the cost of which is less than 30 minimum wage.The rules for controlling the movement of the OS and documenting their design are established in PBU 6/01. To accept to the accounting of fixed assets it is necessary to fulfill such conditions as:
- Operating the OS in the production of goods, providing services or performance of work, as well as for the management needs of the company.
- Application over a long period, the duration of which is more than 12 months.
- Having the ability to bring economic benefits to the company in the coming periods.
Another important condition is that the company should not assume the subsequent sale of fixed assets. The useful life is considered the period during which the assets generate income. For some categories of fixed assets, this gap is determined in accordance with the quantity of goods or the volume of works / services in physical terms. The following factors are important for the organization of accounting:
- OS classification.
- Principles and types of valuation of fixed assets.
- The units that will be used in the calculations.
- Forms of primary documentation and registers.
At enterprises the standard division of fixed assets is applied.In accordance with this classification, operating systems are grouped by:
- Destination. On this basis, allocate the operating asset of the main and additional activities, as well as non-productive assets.
- Nature of operation.
Based on the classification data by industry basis, an assessment of the value of fixed assets in each sector is carried out.
On this basis, fixed assets are divided into:
- Buildings and constructions.
- Power and working machines, equipment.
- Control and measuring devices and devices.
- Economic and industrial inventory, tools.
- Breeding, productive and working cattle.
- On-farm roads.
- Perennial plantings and more.
The division of fixed assets into types forms the basis for analytical accounting. The OS also includes capital investments for land improvement and leased assets.
Valuation of fixed assets of the enterprise
There are several options for its implementation. When accounting is used, the replacement, residual and initial value of fixed assets.The documentation usually uses the second indicator. These types of valuation of fixed assets are carried out for objects
- Manufactured in-house, purchased for payment from other persons in accordance with the actual costs of the purchase or construction, including the costs of installation, installation, delivery.
- Contributed by participants on account of contributions to the authorized capital on the basis of an agreement.
- Received free of charge from other persons and other unrecorded objects at the market price on the date of capitalization.
- Acquired on the basis of contracts that provide non-cash payment, at the cost of the values to be transferred or transferred by the enterprise. The amount used in the calculation is the amount that under normal conditions the company uses to determine three similar assets.
Assessment of fixed assets is carried out taking into account the actual costs of their construction and acquisition. These costs increase or decrease in terms of the sum differences arising in situations where payment is made in rubles at a rate equivalent to the payment in currency.Actual expenses do not include general and similar costs, unless they are directly related to the purchase of assets. The cost of an asset at which they were accepted for accounting is not subject to change, except in the circumstances provided for in the legislation. Adjustment is allowed for the additional equipment, completion, partial liquidation, reconstruction, or in those cases if the reassessment of fixed assets is carried out.
Over time, the initial indicators begin to deviate from the values for similar assets that are being built or purchased in modern conditions. To eliminate this discrepancy, periodic reassessment of fixed assets is carried out. In the course of it is determined restorative st-st. It is an indicator of the reproduction of the OS in modern conditions. From January 1, 1999, companies can carry out partial or full revaluation of fixed assets. However, this operation should be carried out no more than once a year. To implement this task, such methods of valuation of fixed assets as indexing and direct recalculation are used.For this purpose, market indicators, documented. The excess of the markdown over the revaluation surplus, which is credited to the additional capital during the settlement procedures in previous periods, is included in the expense of losses and profits. Objects OS can drop out of production. In this case, the revaluation surplus is transferred to retained earnings. For this to sch. 01 you can open the corresponding subaccount. In the debit contribute the value of the retired object. The loan includes the amount of accumulated depreciation. These methods of valuation of fixed assets allow to obtain data that are used for tax purposes.
As the unit of accounting serves the inventory object. They are considered to be a finished object, device, or complex of parts with all the accessories and devices that, in aggregate, perform one function. Each such object has its own inventory number. It is maintained for the entire time of operation, being in conservation or in stock.
Assessment of the use of fixed assets is carried out in places of their use.It is conducted to obtain information about the presence and movement of the OS. In all companies, this procedure is organized according to a single scheme. Assessment of the state of fixed assets is carried out by classification categories. Entry of objects is made out by the corresponding act. This document is compiled by two parties: the receiving and transmitting. A company must have an appropriate commission. It includes:
- Chief mechanical engineer.
- Head of the unit in which the operation of the OS will be carried out.
- Financially responsible employees, ensuring the safety of the object.
Assessment of fixed assets is carried out in relation to:
- Transfer devices.
- Power machines and equipment.
- Working machines and equipment.
- Inventory and tools.
In the act of acceptance and transmission must be present:
- Object name.
- Passport details.
- Place of operation.
- Factory number.
- Date of construction and commissioning.
- Initial cost.
- Inventory number.
- The amount of wear.
- Depreciation rate for full recovery.
- Supplier name.
- Source of funding or acquisition.
Accounting complements the act with a record indicating the correspondence of accounts arising from the implementation of acceptance and transfer. An inventory card is drawn up in accordance with the document. It acts as a register of analytical accounting of funds. Availability of cards provides the ability to determine the availability of the OS for each classification category and separately for objects, their locations and sources of acquisition. In registers make all the details contained in the act, including the characteristics of the most important accessories and devices. During operation, the dates and amounts of capital repairs, reconstruction, modernization, movement within production, the reason and time of disposal are recorded in the card. When conducting a reassessment of the OS, the replacement cost is reflected in the section “Modernization, reconstruction”. With a small number of assets, transactions with them are recorded in the inventory book.
Receipt and operation
When creating a company, the owners decide on the issue of completing the OS production. If the constituent documents provide for their inclusion in the authorized capital, then they are transferred to the enterprise.In the course of business, the company replenishes its assets to replace obsolete, worn-out facilities or for other reasons. An increase in OS should be reflected in the documentation. The order in which it is carried out will depend on the conditions under which and how they were received. Receipt of the OS can be due to:
- Shopping from other companies.
- Receipt free.
- Local and federal subsidies.
- Contributions as a contribution.
- Receipt in rent.
- Capitalization of surplus identified during the inventory.
For operating areas, the assessment and accounting of operating systems are carried out in inventory lists. They bring a brief information about each object. Each month, the summary information from the inventory cards is transferred to the accounting. The latter reflect information on the movement of the OS. They are in the context of asset groups. Accounting cards are used instead of analytical statements for sch. "Fixed assets". In this regard, the total of them is verified by the results of the synthetic statistics of this account.
For its documentation, an assessment of the effectiveness of fixed assets should be carried out. Among the possible causes of the disposal of the OS are the following:
- Unsuitability for subsequent operation due to the inability to perform the functions that are peculiar to the object, due to the technical condition.
- Financial or long-term lease.
- Reconstruction and technical re-equipment.
- Free transfer, donation or exchange.
- The impact of natural disasters and so on.
Assessment of the status of the OS is carried out in accordance with the act of write-off. Registration of partial or complete disposal is carried out on f. OS-4. Write-off of vehicles is carried out with the use of f. OS-4a. The document indicates the reason for the disposal, the technical condition, the initial cost, the amount of depreciation, the cost of write-off, the cost of material assets that were obtained during the liquidation of the object, and the result of the disposal.
Such accounting is conducted to summarize and evaluate information on the movement of fixed assets owned by the company and in operation, on conservation, on lease, in stock. Statistics are kept in monetary terms. Synthetic accounting is carried out on the accounts:
- "Fixed assets" (Sch. 01).
- "Other expenses and incomes" (sch. 91).
- "Depreciation of the OS" (Sch. 02).
Fixed assets that are purchased for a fee from other enterprises and created within the company itself are reflected in db sch. 01 and cd sc. 08 ("Investments in non-current funds"). Assets taken free of charge, fixed on db sch. 08 and cd sc. 98 ("Profit of the upcoming periods"), on the subsch. 98-2. Their cost in the process of depreciation is deducted from the subsch. 98-2 in CD 91. Upon disposal, the accumulated amount is reduced by its original price. At the same time, the account is debited. 02 and credited sch. 01. In the process of disposing of assets in the sale of DB sc. 91 reflects all costs, and the KD - all income associated with this operation. To the latter, in particular, include the cost of scrap, materials, scrap, which are obtained during the liquidation, the proceeds from the sale and so on. So, on the account. 91 formed the financial result from the disposal of assets. Every month it is written off on the account. 99 "Losses and profits."
In the case of a sale, it is reflected in db sch. 62 "Settlement with customers and buyers" or 76 "Settlements with different creditors / debtors" and Cd cc. 91. At the same time, the residual value of fixed assets is deducted from the cd cc. 01 in db sc. 91. The amount of depreciation is fixed on the account. 02 in debit and sch. 01 credit. In db sc.91 is deducted and the amount of VAT on the asset, as well as the cost of the sale with CD account. 23 and others. In the case of a donation, the residual value is deducted from the credit account. 01 to debit 91, and depreciation - in dB sch. 02. The cost of transportation, packaging, dismantling and other operations are recorded at debit with account 91 from the CD of the corresponding settlement and other accounts. The financial result from the donation of assets is deducted from the account. 91 on the account 99