Accounting financial accounting. Methods for calculating depreciation (the most important)

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Accounting financial accounting. Methods for calculating depreciation (the most important)

Lecture notes, cheat sheets

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33. METHODS OF AMORTIZATION CALCULATION

In accordance with accounting regulations Depreciation of fixed assets can be calculated in one of the following ways:

1) linear;

2) diminishing balance;

3) write-offs of the cost of funds by the sum of the numbers of years of the useful life;

4) writing off the value of the object in proportion to the volume of products, works, services.

RџSЂRё linear way the annual amount of depreciation charges is determined by the original or current (replacement) cost (in the event of a revaluation) of the fixed asset item and the depreciation rate calculated based on the useful life of the item.

RџSЂRё reducing balance method the annual amount of depreciation charges is determined by the residual value of the fixed asset at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this object.

RџSЂRё write-off method based on the sum of numbers of years of useful life the annual amount of depreciation is determined based on the original or current (replacement) cost (in the event of a revaluation of the asset) and the annual ratio, where the numerator is the number of years remaining until the end of the life of the facility, the denominator is the sum of the numbers of years of the life of the facility.

RџSЂRё method of writing off the value of the object in proportion to the volume of products, works, services depreciation charges are calculated based on the natural indicator of the volume of production (work) in the reporting period and the ratio of the initial cost of the fixed asset object and the expected volume of products, work, services for the entire useful life of the fixed asset object.

According to the rules tax accounting (unlike PBU 6/01) depreciation of fixed assets is calculated using two methods: non-linear and linear.

Using nonlinear method for objects whose residual value reaches 20% of the original (replacement) cost, depreciation is calculated in the following order:

1) the residual value is fixed as the base value in further calculations;

2) the amount of depreciation accrued per month for an object is determined by dividing the base cost of this object by the number of months remaining before the expiration of the useful life of the object.

To calculate depreciation, fixed assets are divided into 10 groups. For those types of fixed assets that are not indicated in depreciation groups, the useful life is established by the organization in accordance with the technical conditions and recommendations of the manufacturing organizations.

The organization applies linear method depreciation for fixed assets of the 8th-10th groups (20-30 years and more) regardless of the period of their commissioning. For other fixed assets, the organization has the right to apply both a linear and a non-linear method.

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