"Other income and expenses."

Depreciation is not charged for the following objects: housing stock (residential buildings, dormitories, apartments, etc.); external improvement, forestry, road management, land plots; environmental management; library collections, museum and artistic values, stage and production facilities; productive livestock, oxen, buffaloes and deer; perennial plantings that have not reached operational age; samples, models of operating and non-functioning layouts and other visual aids located in offices and laboratories and used for scientific purposes; as well as buildings and structures that are monuments of architecture and art; exhibits of the animal world.

For the above fixed assets, depreciation is calculated at the end of the reporting year according to the established depreciation rates. The movement of depreciation amounts for the specified objects is taken into account in off-balance sheet account 010 “Depreciation of fixed assets”.

The objects for depreciation also include construction objects that have not been completed or have not received acceptance certificates and are in operation by those organizations to which these objects will be transferred as part of fixed assets; capital costs for land improvement not associated with the creation of structures; equipment and vehicles that are in stock and listed on the balance sheet as non-current assets.

During the useful life of an object of fixed assets, the accrual of depreciation charges is not suspended, except in cases where it is transferred by decision of the head of the organization to conservation for a period of more than three months, as well as during the restoration period of the object, the duration of which exceeds 12 months.

Accrual of depreciation charges on fixed assets is carried out regardless of the organization's performance in the reporting period and is reflected in the accounting records of the reporting period to which it relates.

The accrual of depreciation charges for an object of fixed assets begins on the first day of the month following the month in which this object was accepted for accounting, and is carried out until the cost of this object is fully repaid or this object is written off from accounting.

The accrual of depreciation charges for an object of fixed assets stops on the first day following the month of full repayment of the cost of this object or the write-off of this object from accounting.

For objects that are under construction and used by a contractor, depreciation is calculated by the developers according to established standards. The contracting construction organization reimburses the amount of depreciation as part of the rent for the use of objects under construction.

For capital expenditures on leased fixed assets that are subject to transfer to the lessor upon expiration of the lease agreement, depreciation is charged by the lessee during the lease term based on established standards.

Depreciation of fixed assets to be reflected in accounting is determined monthly based on the methods adopted by the organization's accounting policy for individual groups or objects of fixed assets.

Depreciation of fixed assets is calculated in one of the following ways:

linear method;

method of reducing the balance;

method of writing off value by the sum of the numbers of years of useful life;

method of writing off cost in proportion to the volume of products (works).

The use of one of the methods of calculating depreciation for a group of homogeneous fixed assets is carried out throughout the entire useful life of the objects included in this group. The use of any of the methods (except for the linear method) applies to new fixed assets objects credited to the debit of account 01 “Fixed Assets”.

Fixed assets costing no more than 2,000 rubles per unit, as well as purchased books and brochures, are allowed to be written off as production costs (selling expenses) as they are released into production or operation. In order to ensure the safety of these objects in production or during operation, proper control over their movement must be organized.

The annual amount of depreciation charges is determined:

With the linear method - based on the original cost or current replacement cost (in case of revaluation) of an object of fixed assets and the depreciation rate calculated on the basis of the useful life of this object. For example: the initial (replacement) cost of the object is 240,000 rubles; the useful life of this object is 10 years; in this case, the annual depreciation amount for this object is 24,000 rubles (240,000 rubles: 10 years = 24,000 rubles), the depreciation rate is 10% = (24,000 rubles: 240,000 rubles) x 100%.

With the reducing balance method - based on the residual value of the fixed asset item at the beginning of the reporting year and the depreciation rate calculated based on the useful life of the item. In this case, the depreciation rate can be increased by the corresponding acceleration factor established in accordance with the legislation of the Russian Federation. The use of the reducing balance method leads to the fact that the amount of depreciation decreases every year (as the residual value of the object decreases), so it is not advisable to use it without an acceleration factor. For example: the initial (replacement) cost of an object is 240,000 rubles, its useful life is 10 years, the organization has set the acceleration coefficient of this object to 1.5. The annual depreciation amount is 24,000 rubles (240,000 rubles: 10 years = 24,000 rubles). The depreciation rate is 15 percent ((RUB 24,000 : RUB 240,000) x 100% x 1.5 factor = 15%). According to this example, the annual amount of depreciation in the first year of operation will be 36,000 rubles (240,000 rubles x 15% = 36,000 rubles), in the second year - 30,600 rubles ((240,000 rubles - 36,000 rubles) x 15% = 30,600 rubles) , in the third year - 26,010 rubles ((240,000 rubles - 36,000 rubles - 30,600 rubles) x 15% = 26,010 rubles), in the fourth year of operation, the annual depreciation amount will be 22,108 rubles 50 kopecks ((240,000 rubles - 36,000 rubles - 30,600 rubles - 26,010 rubles) x 15% = 22,108.5 rubles), etc.

When writing off the cost by the sum of the numbers of years of the useful life - based on the initial or replacement (in case of revaluation) cost of the fixed asset and the ratio, the numerator of which is the number of years remaining until the end of the useful life of the object, and the denominator is the amount numbers of the useful life of the object. Example: the initial (replacement) cost of an object is 240,000 rubles, its useful life is 10 years. The sum of the numbers of years of service life of this object is 55 years (1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10). The annual amount of depreciation in the first year of operation will be 43,636 rubles. 36 kopecks ((10: 55) x 240,000 rubles = 43,636 rubles. 36 kopecks), in the second year - 39,272 rubles. 73 kopecks ((9: 55) x 240,000 rubles = 39,272 rubles 73 kopecks), in the third year - 34,909 rubles. 09 kopecks ((8: 55) x 240,000 rubles = 34,909 rubles 09 kopecks), in the fourth year of operation the annual depreciation amount will be 30,545 rubles. 45 kopecks ((7: 55) x 240,000 rubles = 30,545 rubles 45 kopecks), etc.

During the reporting year, depreciation charges for fixed assets are accrued monthly, regardless of the calculation method used, in the amount of 1/12 of the annual amount.

For fixed assets used in organizations with a seasonal nature of production, the annual amount of depreciation charges on fixed assets is accrued evenly throughout the period of operation of the organization in the reporting year.

When writing off the cost in proportion to the volume of production (work), 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 item and the estimated volume of production (work) for the entire useful life of the fixed asset item. Example: a tractor worth 50,000 rubles was purchased. The estimated total volume of work over the entire useful life of the tractor is 10,000 reference hectares. In fact, this tractor completed work on 500 standard hectares in May. The actual amount of depreciation in a given month is 2,500 rubles ((500 hectares x (50,000 rubles: 10,000 hectares) = 2,500 rubles). In June, work was completed on 400 reference hectares, and the depreciation amount for June is 2,000 rubles ((400 hectares x ( 50,000 rub. : 10,000 ha) = 2,000 rub.), etc.

The useful life of an item of fixed assets is determined by the organization when accepting the item for accounting.

In case of revaluation of fixed assets, the accumulated amount of depreciation charges is adjusted in proportion to the change in the replacement cost of the fixed asset against the original cost of this object. Adjustment of the accumulated amount of depreciation charges is carried out on account 02 “Depreciation of fixed assets” in correspondence with account 83 “Additional capital”.

02-1 "Depreciation of own fixed assets";

02-2 "Depreciation of leased and leased fixed assets."

Subaccount 02-1 “Depreciation of own fixed assets” takes into account the movement of depreciation of the organization’s own fixed assets.

Subaccount 02-2 “Depreciation of leased and leased fixed assets” takes into account the depreciation of long-term fixed assets leased by the organization and fixed assets received on the lessee’s balance sheet, if, according to the leasing agreement, the leasing objects are listed on the lessee’s balance sheet.

After the end of the leasing period or lease with the right to buy, the accumulated amount of depreciation on leased or rented objects is transferred to the credit of subaccount 02-1 “Depreciation of own fixed assets” in correspondence with the debit of subaccount 02-2 “Depreciation of leased and leased fixed assets.”

If, after the end of the leasing or rental period, fixed assets are transferred to the tenant or lessor, then the accumulated amount of depreciation on these objects is written off from subaccount 02-2 “Depreciation of leased and leased fixed assets” in correspondence with the credit of account 01 “Fixed assets”.

Upon disposal (sale, write-off, partial liquidation, transfer free of charge, etc.) of fixed assets, including draft animals, the amount of depreciation accrued on them is reflected in the debit of account 02 "Depreciation of fixed assets" and the credit of subaccount 01-11 "Disposal of fixed assets" . A similar entry is made when writing off the amount of accrued depreciation for missing or completely damaged fixed assets.

Analytical accounting for account 02 “Depreciation of fixed assets” is carried out for individual inventory items of fixed assets, groups of fixed assets accounted for in the corresponding subaccounts of account 01 “Fixed assets”. The construction of analytical accounting should provide data on depreciation according to the indicators necessary for managing the organization and drawing up financial statements.

ACCOUNT 02 "DEPRECIATION OF FIXED ASSETS"

CORRESPONDING WITH ACCOUNTS:

N p/p		Corresponding account

Closing account 02 “Depreciation of fixed assets”

DEBIT 01 subaccount “Disposal of fixed assets” CREDIT 01

— the initial cost of the disposed object is written off;

DEBIT 02 CREDIT 01 subaccount “Disposal of fixed assets”

— the amount of depreciation accrued on the disposed object is written off;

DEBIT 91 subaccount “Other expenses” CREDIT 01 subaccount “Disposal of fixed assets”

— the residual value of the disposed object is written off (the original cost of the object minus accrued depreciation).

Thus, the residual value of the disposed object is formed on account 01. In this case, it will be equal to zero if the object is completely depreciated. That is, in such a situation, the initial cost of the fixed asset is equal to the amount of accumulated depreciation and there is no balance on account 01.

A similar entry is made when writing off depreciation for missing or completely damaged fixed assets. It is not possible to close account 02 for other reasons.

Please note: when closing account 02, account 01 will appear for transactions with fixed assets that are used directly in the activities of your company. If we are talking about property that was rented out exclusively, then account 03 “Profitable investments in material assets” will be used. After all, it is in this account that, according to the Instructions to the Chart of Accounts, such assets are supposed to be accounted for.

If depreciation is accrued excessively, then if an error is detected in the current year, the excessively accrued amount is reversed (see accrual entries Here).

Account 86 is used by enterprises and organizations that receive targeted funds from government and commercial sources. We will look at how target financing is accounted for, the receipt and use of funds, in our article.

Account 86: use

Account 86 takes into account the amounts of funds received by the organization to finance targeted activities. The sources of funds can be both state-owned companies and commercial firms and even private individuals.

The main criterion for accounting for funds in account 86 is a clear definition of the purpose and purpose of their use in accordance with the concluded agreement.

Account 86, as a rule, takes into account funds received by the organization for the purpose of financing social programs and socially beneficial events (subsidies for utility bills, subventions for the construction of social housing, support for preferential and low-income categories of the population, etc.).

Accruals of target funds are reflected according to Kt 86. Dt 86 is used to account for the use of funds received within the framework of contractual terms.

Let's look at typical wiring:

Video lesson “Accounting for target financing”: postings, examples

Video lesson about accounting in an organization using account 86 “Targeted financing”. Practical examples with accounting entries are analyzed. The lesson is taught by the teacher of the “Accounting and Tax Accounting” website, chief accountant Gandeva N.V. ⇓

Accounting account 86: typical entries in infographics

The figure below shows accounting account 86 “Targeted financing” in the infographic. To enlarge the picture, click on it.

Account 86 “target financing”. Postings

Accounting for receipt and write-off of target funds using examples

For a detailed examination of various operations using target revenues, we use illustrative examples of typical situations.

Receiving government subsidies

JSC “Minister” operates in the field of real estate construction. In March 2016, “Minister” took part in a tender to receive government subsidies for their subsequent use for the construction of social housing. The amount of state aid is 3,478,000 rubles.

In April 2016, upon completion of the tender, JSC “Minister” was recognized as the winner, and therefore funds in the amount of 3,478,000 rubles were credited to the organization’s current account. In addition, the Minister received construction materials in the form of state aid, the cost of which amounted to 1,714,200 rubles.

The received government subventions were taken into account by the “Minister” in the following way:

Debit	Credit	Operation description	Sum	A document base
	86	The amount of funds accrued as government subventions is reflected (RUB 3,478,000 + RUB 1,714,200)	5,192,200 rub.	Targeted financing agreement
51	76 Targeted financing funds	The funds received by the “Minister” as a state target program are taken into account	RUB 3,478,000	Bank statement
10	76 Targeted financing funds	Materials received by the “Minister” for use in the construction of social housing were taken into account	1,714,200 rub.)	Bank statement

Reimbursement by the state for lost income

As part of the state program, JSC “Canteen No. 1” provides social food distributions to preferential categories of the population. The cost of rations issued to Canteen No. 1 in November 2015 is 412,850 rubles. This amount is fully compensated from the state budget.

The accountant of Canteen No. 1 made the following entries in the accounting records:

Investment of targeted proceeds in non-current assets

Progress JSC is engaged in the production of medical equipment. An agreement was concluded between JSC Progress and the charitable organization Mecenat, according to which:

• “Progress” receives funds from “Maecenas” in the amount of 1,953,500 rubles;
• the funds should be used to purchase an improved conveyor line, which will increase the production of medical equipment.

In September 2015, funds were received from Maecenas, the conveyor line was purchased and put into operation:

• cost of the conveyor line - 1,953,500 rubles;
• useful life – 12 years;
• the amount of monthly depreciation is 12,522 rubles. (RUB 1,953,500 / 13 years / 12 months).

The receipt of funds from “Maecenas”, the acquisition and commissioning of the conveyor line were recorded in the accounting records of “Progress” with the following entries:

Debit	Credit	Operation description	Sum	A document base
76 Targeted financing funds	86	The amount of accrued funds is reflected as received under an agreement with BO “Mecenat”	1,953,500 rub.	Agreement
51	76 Targeted financing funds	Targeted funds received from the charity “Mecenat” are taken into account	1,953,500 rub.	Bank statement
08	60	The receipt of the purchased conveyor is reflected	1,953,500 rub.	Packing list
01	08	The operation to put the conveyor into operation was carried out	1,953,500 rub.	OS commissioning certificate
86	98	The intended use of funds received from the charitable organization “Mecenat” is reflected	1,953,500 rub.	Agreement, Consignment note, OS commissioning certificate
20	02	The amount of monthly accrued depreciation on the conveyor is taken into account	RUB 12,522	Depreciation statement
98	91.1	Other income is taken into account from the amount of deferred income (in the amount of accrued depreciation)	RUB 12,522	Depreciation statement

Use of targeted funds for current needs

JSC “Consul”, under a targeted financing agreement, transferred funds to LLC “Zoo” in the amount of 642,300 rubles. Funds have been provided for the repair of animal enclosures. Using the funds received from the Consul, the Zoo purchased the materials necessary to repair the enclosures. The actual repairs were carried out by the Zoo’s own staff.

The following transactions are recorded in the Zoo’s accounting records:

Debit	Credit	Operation description	Sum	A document base
76 Targeted financing funds	86	Reflects the amount of accrued funds on account of receipt under the agreement with JSC “Consul”	642,300 rub.	Agreement
51	76 Targeted financing funds	Targeted funds received from JSC “Consul” are taken into account	642,300 rub.	Bank statement
10	60	The Zoo warehouse received materials purchased for the repair of animal enclosures	642,300 rub.	Packing list
86	98	Materials purchased for repairs are accounted for as deferred income	642,300 rub.	Packing list
20	10	The fact of using materials in the repair of animal enclosures is reflected	642,300 rub.	Packing list
98	91.1	Other income from the amount of deferred income is taken into account	642,300 rub.	Agreement, Consignment note

All enterprises with a balance sheet are required to keep records of depreciation charges. To do this, monthly entries are made in accounting to write off part of the cost of fixed assets as depreciation.

In addition, the accountant encounters this concept when revaluing, modernizing, retiring, or writing off objects. Each of these operations entails the need to reflect double entries in the depreciation accounts.

Through depreciation there is a gradual transfer of the value of the fixed asset, according to which it is listed in accounting, for products, goods. Ultimately, the money spent on the acquisition of operating systems is returned to the company after receiving payment from buyers and clients for the purchased values.

This process is gradual and continues throughout the entire useful life. To account for it, the accountant makes monthly entries in specially designated accounting accounts.

As long as the fixed asset is listed on the balance sheet of the enterprise, the accountant must make depreciation payments monthly. This procedure is carried out until complete wear and tear, write-off due to unsuitability, breakdown or transfer to other persons.

The process of depreciation accumulation is suspended only in two cases:

1. Finding the OS on conservation, provided that its duration exceeds 3 months.
2. Recovery, reconstruction of the facility, if this process takes more than a year.

If a decision is made to sell an object or write it off, the accountant determines the residual value of the asset. To do this, the depreciation accrued for the entire period is written off by posting to account 01, where the residual parameter is determined.

If during the operation of equipment or other object the initial cost changes due to revaluation, then also depreciation accruals are recalculated and the necessary wiring is performed.

Thus, with the need to reflect transactions When accounting for depreciation of fixed assets, the accountant is faced with the following cases:

• making monthly depreciation payments;
• changes in accumulated deductions due to (may either increase or decrease);
• write-off of a depreciable object as unnecessary (physical or moral wear and tear, breakdown, irreparable defects);
• disposal of fixed assets to third parties (sale, donation, contribution to the authorized capital of other enterprises).

On what account are they reflected?

For the purpose of accounting for depreciation accumulations for fixed assets, it is provided in the Plan count 02:

• By debit– shows the amount of depreciation for written-off and retired objects, as well as a decrease in savings due to the devaluation of fixed assets.
• By loan– accrued depreciation included in the cost price is collected, and an increase in accumulated deductions due to revaluation is also reflected.

On account 02 it is possible opening subaccounts:

• 1 – deductions are shown for owned assets on the balance sheet;
• 2 – depreciation is reflected on fixed assets taken on a long-term lease and on the leased balance sheet. Accounting and

On account 02 it is necessary to provide analytical accounting for each individual fixed asset or a group of homogeneous objects.

This will allow you to obtain the necessary information to analyze the efficiency and feasibility of using fixed assets.

Monthly double entries on account 02 when accrued

From the month immediately following the month in the organization, it is necessary to calculate depreciation and write it off as expenses.

Calculation of depreciation charges posted to account 02 credit in correspondence with the debit of the enterprise's cost accounting accounts.

Selecting a corresponding account depends on the purpose and place of use of the OS object, as well as on the nature of the enterprise’s activities - trading, manufacturing.

Depreciation may be written off to the following accounting accounts :

• 20, 23 – for production facilities, equipment engaged in primary and auxiliary production;
• 44 – for fixed assets operated by trading companies;
• 91 – for OS leased.

Posting table for calculating depreciation of fixed assets :

Postings are made monthly throughout their useful life in the reporting period to which they relate. It does not matter what the financial result of the enterprise is.

The accumulation of royalties must not stop, except for long-term cases of restoration and conservation.

The amount for which an accounting entry is made is calculated using one of the established four methods.

How is it written off upon disposal?

The need to deregister a fixed asset occurs for various reasons:

• Depreciation is obsolete - the equipment is outdated.
• Physical wear and tear – the service life has ended, or the object has become so worn out that it is no longer suitable for use.
• Breakdown - if its repair is not feasible for economic reasons or is not possible.
• Transfer to other parties when selling, donating, or entering into the charter capital of other companies.
• Shortages identified after inventory.

Regardless of the reason for deregistration of the fixed asset procedure is the same:

1. A separate sub-account 11 is opened on account 01.
2. The initial or replacement cost of the fixed assets is written off to the debit of the open subaccount.
3. The accumulated depreciation is transferred to the credit of the open subaccount.
4. The residual value is determined and written off depending on the reason for deregistration of the asset.

The transfer of depreciation charges accumulated to the date of disposal or write-off is carried out using an accounting entry: Dt 02 Kt 01-11– the amount of accrued depreciation is written off.

When revalued

Revaluation is procedure for recalculating that cost, according to which the fixed assets are listed on the balance sheet. This is done to match actual market prices.

The result of this process can be an additional valuation when the initial cost increases, and a markdown when it decreases.

The value indicator by which fixed assets are accounted for in the debit of account 01 changes depending on the results of the revaluation - it increases or decreases. The resulting cost will already be called replacement cost.

Depreciation accumulations on account 02 also change accordingly. Moreover, a proportional calculation is made of the amount by which accrued depreciation must be reduced or increased, depending on changes in the replacement cost of the fixed asset.

Formula for recalculating depreciation:

Formula:

Recalculated A. = Restorative Art. * Accumulated A. / Initial Art.

Posting table on accounting for depreciation during revaluation :

Example

Initial data:

On February 20, 2018, the company bought a machine; the total cost was 720,000 rubles.

The period of use for the machine is set at 6 years = 72 months.

Depreciation is calculated using the straight-line method, monthly deductions = 10,000.

What entries should the accountant record for the period from February to June 2018?

Solution:

Postings for depreciation charges must begin from March 1, 2018 to June inclusive.

Let's assume that the company operates under the simplified tax system and does not pay VAT.

Posting table:

date	Sum	Operation	Debit	Credit
20.02	720 000	The machine was put into operation as OS	01-1	08
01.03	10 000	Depreciation for 1 month is included in production costs	20	02
01.04	10 000	Depreciation charges for 2 months of use	20	02
01.05	10 000	Depreciation for 3 months of operation	20	02
01.06	10 000	Depreciation for 4 months	20	02
10.06	720 000	The initial cost of a fixed asset was written off due to its sale	01-11	01-1
10.06	40 000	Accumulated deductions for the object are written off	02	01-11
10.06	680 000	The machine is for sale	91-2	01-11
10.06	500 000	The sales price of the machine is reflected	62	91-2
	180 000	The financial result of the transaction is a loss	99	91-2

How is the excess accrued amount for the previous period reflected?

If depreciation for the previous period was not accrued correctly in an excessive amount, then errors need to be corrected. It is important in what period they were admitted - the current year or the past.

The accrued amount of depreciation of fixed assets is reflected in accounting under the credit of account 02 “Depreciation of fixed assets” in correspondence with the accounts of production costs (sales expenses). The lessor organization reflects the accrued amount of depreciation on leased fixed assets as a credit to account 02 “Depreciation of fixed assets” and a debit to account 91 “Other income and expenses” (if rent forms other income).

Upon disposal (sale, write-off, partial liquidation, transfer free of charge, etc.) of fixed assets, the amount of depreciation accrued on them is written off from account 02 “Depreciation of fixed assets” to the credit of account 01 “Fixed assets” (sub-account “Disposal of fixed assets”). A similar entry is made when writing off the amount of accrued depreciation for missing or completely damaged fixed assets.

Analytical accounting for account 02 “Depreciation of fixed assets” is carried out for individual inventory items of fixed assets. At the same time, the construction of analytical accounting should provide the ability to obtain data on the depreciation of fixed assets necessary for managing the organization and drawing up financial statements.

Account 02 “Depreciation of fixed assets” corresponds with the accounts:

by debit	about the loan
01 Fixed assets
02 Depreciation of fixed assets	08 Investments in non-current assets
03 Profitable investments in material assets	20 Main production
	23 Auxiliary productions
83 Additional capital	25 General production expenses
	26 General expenses
	29 Service industries and farms
	44 Selling expenses
	79 On-farm settlements
	83 Additional capital
	91 Other income and expenses
	97 Deferred expenses

Depreciation calculation

Depreciation is the gradual transfer of the cost of a fixed asset to the cost of products (works, services).

When to start depreciation

You must charge depreciation for each fixed asset item monthly, starting from the month following the month in which you included the item in fixed assets (after that, post):

DEBIT 01  CREDIT 08
– the fixed asset item is accepted for accounting.

The organization acquired technological equipment and on March 15 accounted for it as part of fixed assets. You must charge depreciation on this equipment starting in April.

Depreciation accrual stops from the first day of the month following the month when the fixed asset item is completely depreciated or written off from the balance sheet of your company (sold, liquidated, etc.).

The organization sold the technological equipment on September 15. Despite this, depreciation on this equipment must be fully charged for September.

You must charge depreciation for each fixed asset item only within the limits of its value recorded in account 01 “Fixed Assets”.

If the equipment is fully depreciated, but your company continues to use it, the residual value of such equipment is zero. There is no need to charge depreciation on such equipment. However, if it is completed (additional equipment, reconstruction, modernization, technical re-equipment, partial liquidation), then in tax accounting the initial cost of the equipment should increase. This cost must be depreciated according to the same standards that were previously determined for this equipment when it was put into operation (letter of the Ministry of Finance of Russia dated November 18, 2013 No. 03-03-06/4/49459).

You must record depreciation in accounting as a credit to account 02 and a debit to the corresponding expense account:

DEBIT 08 (20, 23, 25, 26, 29, 44, 91-2)  CREDIT 02
– depreciation of fixed assets has been calculated.

Depreciation is suspended:

• during the restoration period of the facility, the duration of which is more than 12 months;
• if the object, by decision of the manager, is transferred to conservation for a period of more than three months.

When depreciation is not charged

Depreciation is not charged for the following fixed assets:

• for housing facilities (if they are not used to generate income);
• on fixed assets that are used to implement Russian legislation on mobilization and mobilization preparation;
• about fixed assets of non-profit organizations;
• for other fixed assets, the consumer properties of which do not change over time (for example, land plots, environmental management facilities, museum objects and collections).

note

Even if the property is temporarily not used in the activities of your company and does not generate income, it still needs to be depreciated. This was indicated by the Russian Ministry of Finance in its letter dated February 28, 2013 No. 03-03-10/5834. The Federal Tax Service of Russia, in turn, sent this clarification to all its departments for implementation. The controllers reported this in their letter dated May 22, 2013 No. ED-4-3/9165@.

Depreciation not taken into account for tax purposes

Depreciation accrued on fixed assets is not taken into account when taxing profits:

• purchased using budget funds for targeted financing (with the exception of property received during privatization);
• budgetary organizations (except for property acquired and used for business activities);
• non-profit organizations (if these fixed assets were acquired from earmarked funds and are used to carry out non-profit activities).

Fixed assets with a cost of no more than 40,000 rubles per unit are written off as expenses in accounting as they are put into operation (without depreciation). Please note that since 2016, in tax accounting, the limit on the value of depreciable property has been increased from 40,000 to 100,000 rubles. The innovation applies to fixed assets put into operation from January 1, 2016 (Federal Law of June 8, 2015 No. 150-FZ).

In tax accounting, books, brochures and other publications (regardless of their cost) can be written off as expenses in full at the time of purchase. In accounting, books, brochures, etc. are included in expenses if their cost does not exceed 40,000 rubles or their service life does not exceed a year.

Calculation of depreciation for accounting purposes

There are four ways to calculate depreciation of fixed assets:

• linear method;
• reducing balance method;
• method of writing off value by the sum of the numbers of years of useful life;
• method of writing off cost in proportion to the volume of products (works).

To calculate depreciation, you must divide all fixed assets of your organization into homogeneous groups of objects united by common characteristics.

For objects of one group of fixed assets, you can use only one of the listed methods.

How to set useful life in accounting

You must apply the chosen method of calculating depreciation over the entire useful life (that is, service life) of the fixed asset.

It is necessary to establish the useful life of a fixed asset when accepting it for accounting based on:

• its expected lifespan in relation to its expected performance or capacity;
• expected physical wear and tear, depending on the operating mode (number of shifts), natural conditions and the influence of an aggressive environment, the repair system;
• regulatory and other restrictions on use (for example, lease term).