The transfer of the value of fixed assets to finished products is carried out for a long time, which can cover several production and technological cycles. In this regard, the accounting of fixed assets is organized so that it was possible to simultaneously reflect the preservation of the original form and the gradual loss of value. One of the most important indicators is the average annual cost of fixed assets.
Instructions
Step 1
Determine the initial cost of fixed assets at the beginning of the year. This value reflects the actual costs of the enterprise for the creation or acquisition of fixed assets. When calculating this value, the cost of the purchased equipment or other fixed asset, the cost of installation work, delivery costs, as well as other costs associated with putting the object into operation are taken into account. Next, you need to adjust the original cost by the amount of depreciation of the fixed assets to get the indicator at the beginning of the current year.
Step 2
Calculate the value of fixed assets that were entered and withdrawn during the year at the enterprise. When entering objects, their initial cost is taken into account, and when withdrawing, the value that is accepted in the current month on the balance sheet is taken into account. By editing the initial cost of the fixed asset at the beginning of the year by the sum of the cost of input and output of the fixed asset during the year, you will receive the initial cost at the end of the year.
Step 3
Use the simplified formula to calculate the average annual cost of the asset. To do this, add up the initial values at the beginning and end of the year and divide the amount by 2. This calculation gives only an approximate result, so a more complex formula is often used.
Step 4
Take into account the month of entry and exit of fixed assets when calculating the average annual cost. To do this, adjust the value of the introduced and disposed fixed assets by the number of full months that have passed since the entry and introduction of the object, divided by 12.
Step 5
Then add the initial value at the beginning of the year with the adjusted value of the fixed assets entered and subtract from the sum the new value of the value of the assets disposed of. However, the most accurate average annual cost can be obtained if the average monthly cost is taken into account in the calculation, which is determined as the arithmetic average cost at the beginning and end of the month.
