Investments. Depreciation of fixed assets and methods of its calculation (the most important)

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Investments. Depreciation of fixed assets and methods of its calculation (the most important)

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DEMORTIZATION OF FIXED ASSETS AND METHODS OF ITS ACCRUATION

Depreciation of fixed assets - an indicator that reflects information on the amount of depreciation charges accumulated during the operation of fixed assets. Depreciation of fixed assets for accounting purposes is carried out in one of four ways to account 02.

The leased property is listed on the lessor's balance sheet, so the lessor charges depreciation charges. The cost of fixed assets is repaid by depreciation. One of the ways to calculate depreciation for a group of homogeneous items of fixed assets is made during the useful life of the items included in this group.

In addition to writing off the value of fixed assets through depreciation, it is provided that fixed assets worth no more than 10 rubles. per unit or another limit established in the accounting policy based on technological features, as well as purchased books, brochures and similar publications, it is allowed to write off production costs (sales expenses) as they are put into production or operation. In order to ensure the safety of these objects in production or during operation in the organization, it is necessary to organize control of their movement.

Depreciation methods

With the linear method, the annual amount of depreciation is determined based on the original cost or current (replacement) cost (in case of revaluation) of an object of fixed assets and the depreciation rate calculated based on the useful life of this object.

The reducing balance method for determining the useful life is established in the case when the efficiency of using an item of fixed assets decreases with each subsequent year.

The method of writing off the cost by the sum of the numbers of years of useful life. With this method, the annual depreciation rate is determined based on the initial cost of the fixed asset and the annual ratio, where the numerator is the number of years remaining until the end of the life of the object, and the denominator is the sum of the numbers of years of the useful life of the object.

With the method of writing off the cost of a fixed asset in proportion to the volume of products (works, services), depreciation is charged based on the natural indicator of the volume of products (works) in the reporting period and the ratio of the initial cost of the fixed asset and the estimated volume of products (works) for the entire useful life of the object fixed assets.

Author: Kuznetsova S.A.

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