Accelerated depreciation is a method in which the value of fixed assets is transferred at a faster rate than with traditional methods of depreciation by artificially reducing the useful life of the funds and increasing the rate of deductions.
Instructions
Step 1
The use of such depreciation makes it possible to accelerate the write-off of the value of property to the cost of production, as a result of which the taxable profit of the enterprise decreases. The advantages of this method of calculating depreciation include the rapid recovery of most of the costs in a shorter period of time. However, the application of this method leads to an unreasonable overestimation of the cost of production, and, consequently, the selling price.
Step 2
In Russian accounting practice, accelerated depreciation is not widely used. In relation to fixed assets that operate in an aggressive environment or increased shifts, a special coefficient can be applied to the depreciation rate, but not higher than 2, i.e. the depreciation rate can be doubled. If the property belongs to the taxpayer on the basis of a lease agreement, then he has the right to apply a special coefficient, but not more than 3. But at the same time, this rule does not apply to depreciable property that belongs to the first, second or third depreciation groups, if depreciation on it is calculated using a non-linear method. distributed by.
Step 3
It must be remembered that an aggressive environment for the purpose of applying accelerated depreciation is understood as a combination of natural or artificial factors that increase the wear of the fixed asset. In addition, work in an aggressive environment is understood as the presence of property in contact with an explosive, toxic, fire hazardous and other aggressive environment that can cause an emergency.
Step 4
Accelerated depreciation can be accrued in two ways: by the sum of years or by the method of declining balance. The first method involves estimating the useful life, assigning a sequential amount to each year, and determining the amount of this amount. Its residual value is deducted from the original cost of the depreciation object, and then the resulting amount of depreciation deductions is multiplied by a fraction, the numerator of which will be the remaining useful life, and the denominator is the sum of the number of years.
Step 5
The method of doubling the balance is that each year the declining balance of the property value is multiplied by a constant percentage factor that is twice the corresponding depreciation rate. The latter is the reciprocal of the useful life times one hundred. That is, if the useful life of the asset is 5 years, then the depreciation rate will be 20%, and the doubled rate will be 40%. The double rate is usually multiplied by the carrying amount of the asset at the beginning of the period and the depreciation amount is obtained.
