Depreciation is the process of transferring the value of fixed assets in parts to the value of products produced with their help. The choice of the depreciation method will depend on the accounting purposes and on the specifics of the organization's work.
Instructions
Step 1
In the process of production activities of the enterprise, fixed and current assets are used. Fixed assets are machines, machine tools, equipment, all these assets can be used for several years, but in the process of active operation they gradually wear out and become obsolete. To compensate for the depreciation of fixed assets, the organization must make depreciation deductions.
Step 2
To calculate depreciation, you must first:
- determine the initial cost of the fixed asset:
- to establish a useful life for the object;
- choose a reasonable method for calculating depreciation.
In accordance with Russian accounting standards, there are four methods for calculating depreciation, the organization itself has the right to choose the method that will suit it.
Step 3
The straight-line method allows you to make depreciation deductions evenly over the entire life of the asset. This method is used most often, since it allows you to bring accounting and tax accounting as close as possible, to simplify the work of an accountant and the technical process of accounting. But the use of the linear method is not always justified, since very often the fixed asset can be used unevenly during its service life.
Step 4
In some cases, depreciation may be calculated on a natural basis. For example, when depreciating a car, accruals can be made based on its mileage. For this, the method of writing off the value of the fixed asset is used in proportion to the volume of products produced or work performed.
Step 5
If the goal is a quick renewal of the company's fixed assets, then it is most reasonable to choose accelerated methods of depreciation, they allow in the first periods of depreciation to write off most of the asset's value. Such methods include the method of reducing the balance and the method of writing off according to the sum of the numbers of years of useful life.
