The book value means the value of intangible assets and fixed assets that are accepted for accounting. It includes the amount of the costs incurred for manufacturing or purchasing, transportation, handling and other work, as well as the amounts that are paid by the organization for certain consulting services. Refundable taxes (including value added tax) are excluded.
Instructions
Step 1
The property is taken to the balance sheet of the enterprise at its replacement and original cost, which includes all the costs of the acquisition, construction and commissioning of assets, both production and non-production. Add up all the already known costs and add your additional calculations to them.
Step 2
Include in the replacement cost the cost of acquiring a property at a specified market price in a specified time frame. If in the initial cost you have to decide on the aggregate of all costs, then in the recovery take into account the average prices in the market. Adjust the generated report periodically.
Step 3
The replacement cost is determined both expertly on the basis of market prices and using inflation rates. The cost is considered to be replacement value if it is determined as a result of the revaluation of funds, which is made by the decision of the Russian government. If necessary, use the services of professional accountants or regularly research market prices that relate to your company's area of activity.
Step 4
Do not forget to clarify the book value, taking into account the depreciation of property in the enterprise (depreciation). The value of assets is the difference between the initial value of the property, which was accepted on the balance sheet, and depreciation.
Step 5
Remember that the book value is determined by the date of the transaction, this is especially true for joint stock companies, in which most transactions are made at the end of the reporting period, which makes it difficult to put on the balance sheet. The legislation of the Russian Federation provides for fixing the book value of assets based on the objectives of making decisions on the size of the transaction as of the last reporting date.
