The cost of fixed assets of the enterprise, calculated taking into account the depreciation of fixed assets, is called residual. Methods for calculating this characteristic are elements of a special measurement system called the valuation of fixed assets.
Instructions
Step 1
The term "fixed assets" is used in the preparation of the accounting and tax reporting of the organization. These are the tangible assets of the enterprise, expressed in monetary terms, which are involved in the production of goods and the provision of services with a service life of up to a year. The assets of the enterprise themselves are called fixed assets.
Step 2
The main means are both natural means of labor (land, water body) and artificial (tools, equipment, devices and other technical devices). Artificial or technical means of labor have a certain service life and wear out over time.
Step 3
To reduce the wear and tear of equipment (repair, maintenance), depreciation deductions are allocated from the budget of the company, which are considered production costs.
Step 4
The residual value of fixed assets of an enterprise is calculated as the difference between the initial cost of equipment and the amount of depreciation charges for a certain reporting period (usually a year).
Step 5
Depreciation deductions are calculated in several ways: linear, decreasing balance, cost write-off based on the sum of the number of years of useful life, cost write-off in proportion to the volume of production.
Step 6
The linear method assumes the calculation based on the original cost of equipment and depreciation rates according to the useful life. The useful life is determined according to the Classification of property, plant and equipment.
Step 7
The method of decreasing balance takes into account the residual value of the object at the beginning of the reporting period and the depreciation rate, taking into account the coefficient not exceeding 3. Each company sets its own values of the coefficients.
Step 8
According to the method of writing off the value by the sum of the number of years of useful life, the amount of depreciation is calculated at the initial cost and the ratio between the number of years remaining until the end of the useful life and the number of past years of useful life of the fixed asset.
Step 9
The method of writing off the value in proportion to the volume of production is mainly used in calculating the depreciation deductions for means of labor for the extraction of natural raw materials. The amount of depreciation of fixed assets is calculated as the ratio of the value of fixed assets to the volume of production.
