All property of the enterprise, accepted for accounting, is depreciated, that is, wears out over time. Depending on the useful life, it belongs to one of the depreciation groups. The useful life is the period during which the assets of the enterprise are able to generate income.
Instructions
Step 1
The period for which the property is able to serve the purposes of the enterprise is determined independently, taking into account the Tax Code, which regulates the assignment of property to a particular depreciation group, as well as taking into account the classification of fixed assets.
Step 2
All depreciable property belongs to one or another depreciation group. There are ten such groups in total. So the first depreciation group includes short-lived assets, the useful life of which is from one to two years. The second depreciation group includes property, the useful life of which is 2-3 years, the third - 3-5 years, the fourth - 5-7 years, the fifth - 7-10 years, the sixth - 10-15 years, the seventh - 15-20 years, the eighth is 20-25 years old, the ninth is 25-30 years old, the tenth is over 30 years old.
Step 3
The useful life of the enterprise can be established after the entry of the object of fixed assets into operation, as well as after reconstruction, modernization, technical re-equipment, if there is an increase in this period. However, it is possible to increase the useful life only within the limits set for this depreciation group.
Step 4
For intangible assets, the useful life is determined based on the period of validity of the patent or license for the right to use the object. If the useful life cannot be determined in this way, then the depreciation rates are set for a period of 10 years.
Step 5
The list of fixed assets that are included in each of the depreciation groups is strictly regulated by law. For example, the fifth depreciation group includes property: buildings, except for residential ones, production sites without coatings, heating mains, photographic equipment, etc.
Step 6
If the fixed asset does not belong to any of the depreciation groups, its useful life is determined based on the technical conditions or manufacturer's recommendations.
