Any property is subject to wear and tear over time, therefore, in accounting, depreciation is charged on fixed assets and intangible assets on the balance sheet of the organization. In the reporting, it is reflected in the corresponding items of non-current assets by reducing the total value of the property by the amount of depreciation.
It is necessary
- - PBU 6/01 "Accounting for fixed assets";
- - PBU 14/2007 "Accounting for intangible assets".
Instructions
Step 1
When reflecting depreciation in the balance sheet, follow PBU 6/01 "Accounting for fixed assets" and PBU 14/2007 "Accounting for intangible assets". It can be charged in one of the following ways:
- linear;
- diminishing balance;
- write-off of cost according to the sum of the numbers of years of the useful life;
- writing off the cost in proportion to the volume of sales.
Step 2
In accounting, transactions with fixed assets are conducted on account 01 of the same name, and their depreciation - on account 02. Generate a balance sheet for the accounts, calculate the difference between the debit balance of account 01 and the credit balance of account 02. Enter the resulting value in line 1130 of the balance sheet " Fixed assets ".
Step 3
If your company rents out property for rent, consider its depreciation on the subaccount "Depreciation of property provided for temporary use" and do not reduce the value of fixed assets in the balance sheet.
Step 4
In addition, there is a special group of non-current assets, which are depreciated - construction in progress, real estate, reflected in account 08 "Investments in non-current assets". If your organization has actually completed construction and finishing work and began to operate a building or structure, write off the depreciation amount from the credit of account 02 to the debit of account 08, regardless of whether the ownership is registered or not. Indicate the value of the property, less depreciation, as part of fixed assets on line 1130 of the balance sheet.
Step 5
When reflecting the amortization of intangible assets in the reporting, enter in the balance sheet line 1110 the difference between the debit balance of account 04 "Intangible assets" and the credit balance of account 05 "Amortization of intangible assets". In addition, you can set the procedure for calculating depreciation without applying account 05. To do this, include the appropriate paragraph in the order on accounting policy. In this case, charge the depreciation of intangible assets on account 04, and when forming the balance, indicate in line 1110 the debit balance of account 04.
