Depreciation is a process in the economy of an enterprise, during which there is a gradual transfer of the value of intangible assets to the cost of work, products or services. Depreciation is calculated based on the accounting policy of the company and the selected method of calculation.
Instructions
Step 1
Determine the useful life of the intangible asset. Analyze the time during which the use of the object will generate income. Calculate the validity period of a certificate, patent or other document confirming the right to use intellectual property in accordance with the legislation of the Russian Federation. Calculate the amount of production or other natural measure of the amount of work that is expected to be obtained from the use of the intangible asset.
Step 2
Calculate the monthly rate of amortization of an intangible asset in accordance with the accounting policy of the company. If a linear method of accrual is chosen, then this value is determined inversely proportional to the useful life. The method of reducing the balance calculates depreciation charges based on the residual value of the object at the beginning of the year and the depreciation rate determined on a straight-line basis. Depreciation by the write-off method is determined by the natural indicator of the volume of production and the ratio of the initial cost of intangible assets and the planned volume of production for the entire period of use of the facility.
Step 3
Accrue depreciation on objects of intangible assets from the 1st day of the next month after the adoption of intangible assets in accounting. In this case, the method of accumulation or reduction of the initial cost can be used.
Step 4
Reflect the accrued amortization of an intangible asset using the accumulation method in accounting on the credit of account 05 "Amortization of intangible assets" and the debit of account 20 "Main production" or account 26 "General expenses". If the method of reducing the original cost is used in the calculation of depreciation, then the amount of depreciation is reflected on the credit of account 04 "Intangible assets" in correspondence with account 20 or 26.
