Fixed assets are part of the property of an organization that is used for a long period of time (more than 12 months) for the production of products, work or services, as well as for management purposes. A set of fixed asset objects of the same type in terms of technical characteristics, purpose and method of use are called groups of fixed assets.
Instructions
Step 1
When assigning an object to fixed assets, check whether it has the following characteristics:
- the ability to bring economic benefits to the company in the future;
- the organization does not intend to further resell the property;
- is used for a long period of time (duration of use exceeds 12 months or one operating cycle lasting more than 12 months). If the property taken into account corresponds to the above criteria, then it should be reflected in the accounts of fixed assets.
Step 2
You should know that all fixed assets are subdivided into groups, each of which has its own distinctive characteristics.
1. Buildings are architectural and construction objects that create the necessary conditions for the implementation of production activities, storage of material assets, and are also used for managerial and non-production needs.
2. Structures are engineering and technical objects that perform technical functions for servicing the production process, but are not associated with changes in the objects of labor (tunnels, drains, overpasses, etc.).
3. Transfer devices are devices with the help of which energy of various types is transferred, as well as liquid and gaseous substances (heating systems, gas networks, etc.).
4. Machinery and equipment, including:
- power machines and equipment intended for the generation and distribution of energy;
- working machines and equipment directly involved in the production process;
- measuring and regulating instruments and devices;
- computing and electronic equipment.
5. Vehicles.
6. Tools - means of labor that have been involved in the production process for more than 1 year.
7. Production equipment and household accessories, which are used to perform production operations and create conditions for safe work (workbenches, work tables, etc.).
8. Household equipment, which provides conditions for work and performs the function of maintaining production (copying equipment, office furniture, etc.).
9. Land plots and perennial plantings.
10. Working, productive livestock and other fixed assets.
Step 3
Please note that in accounting for taxation and depreciation purposes, all fixed assets are divided into 10 depreciation groups, depending on their useful life. The useful life is the period during which an item of property, plant and equipment is able to serve the purposes of the organization. The first depreciation group includes property with a useful life of 1-2 years, the second - 2-3 years, the third - 3-5 years, the fourth - 5-7 years, and the fifth - 7-10 years. The sixth depreciation group includes property, the useful life of which is 10-15 years, the seventh - 15-20 years, the eighth - 20-25 years, the ninth - 25-30 years, the tenth - over 30 years.
