We understand the concept of depreciation. Here you will learn how to calculate depreciation of fixed assets. From 2002 to the present day, the following methods of calculating depreciation have been used in accounting: the straight-line method of calculating depreciation, the reducing balance method, the method proportional to the volume of output, as well as the method based on the sum of the numbers of years of useful life. In this article we will analyze these 4 methods of calculating depreciation with examples.
The calculation of depreciation charges for fixed assets involves the use of the original or residual value and the depreciation rate of fixed assets. The initial cost is the cost at which the object was accepted for accounting upon receipt by the enterprise. Read more about the receipt of fixed assets. The residual value of fixed assets is the difference between the original cost and accrued depreciation.
General formula for calculating depreciation charges:
Cost (original or residual) * depreciation rate / 100%.
Calculating the rate is very simple; to do this, you need to divide all depreciation (taken as 100%) by. Then you can calculate the amount of depreciation for the past year, that is, multiply the original cost by the rate and divide by 100%. How to calculate depreciation charges for a month? To do this, all that remains is to divide the amount received by the previous action by the number of months in the year.
The presence of fixed assets in an organization implies gradual depreciation of their value. Accrual of depreciation amounts is carried out according to certain standards. How to calculate the depreciation rate correctly?
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Any organization uses certain property and intangible values in the process of its activities. They are classified as fixed assets if they are used for more than a year.
But over time, any things lose their original characteristics. Fixed assets also wear out. Depreciation allows you to gradually write off their value. How is the annual depreciation rate calculated correctly?
Important points
In the process of use, the main assets of an enterprise invariably wear out and lose part of their value. In this case, wear and tear can be moral or physical.
Obsolescence of equipment due to the emergence of more advanced models leads to obsolescence. That is, existing objects fall in price, even if they remain in perfect condition.
Moreover, this can happen long before physical wear and tear, which is caused by natural use. Depreciation is always charged on long-lived assets.
The only exception is land and intangible assets used by the enterprise. Depreciation amounts are included in operating costs.
Depreciation continues throughout the useful life of the depreciable asset. In all cases of accrual of depreciation amounts, depreciation rates are determined.
These are regulated by the state, which exercises control over the speed of reproduction and growth rates in each individual economic sector.
For this purpose, ten main depreciation groups have been established. Each of them has its own depreciation rate. This average rate is used for tax accounting purposes.
In accounting, the rate of depreciation of an object is established based on the period of useful use determined for this property.
In this case, the useful life period of an organization can be established either independently or by belonging to a certain depreciation group.
What it is
Depreciation is the gradual process of transferring the cost parameters of an object to production costs. The depreciation rate is the part of the cost characteristic of an asset expressed as a percentage.
The indicator shows the ratio of the annual depreciation amount and the original cost of the property. The depreciation rate is the reciprocal of the useful life of an object.
The depreciation rate determines what proportion of fixed assets should be written off during the year. The level of depreciation rate is determined by the period of useful use of the object.
The depreciation rate depends on many factors - production capabilities, the ratio of resources and needs, the pace of technical progress, etc.
For each individual object or group, its own depreciation rate is established. The depreciation rate is calculated based on the initial cost of the objects, their standard service life and salvage value.
Various methods are used to calculate the annual depreciation rate. In particular:
- linear;
- reducing balance method;
- method of writing off value by the sum of the numbers of years of the useful life period;
- a method of writing off cost in proportion to the volume of production.
For what purpose is the indicator calculated?
The main objective of depreciation is the accumulation of capital necessary for the subsequent reimbursement of fixed assets or the costs of their repair.
In each case of sale of manufactured products, part of the funds included in the amount of transferred cost is sent to the depreciation fund.
Here, funds accumulate before the cost of the object is paid off. After this, the accumulated resources are used to purchase a new object. That is, an update (renovation) of production is taking place.
The sinking fund plays a central role in achieving designated goals and fulfilling depreciation standards in the future period.
The main functions of this fund should be considered:
The main task of introducing depreciation standards into the cost parameters of fixed assets is economic compensation for physical and moral wear and tear, which is inevitable in the business process.
Simply put, with the help of depreciation rates, the cost of objects is smoothly transferred to manufactured products. It is the depreciation rate that allows you to monitor the rate of depreciation of an object and the rate of its restoration.
Current standards
Assets accepted for accounting are recognized as fixed assets if they comply with the requests established, adopted and ratified by the “Methodological guidelines for fixed assets accounting”.
The property must be used for production purposes for a period of more than twelve months, must provide economic benefit and not be intended for subsequent resale.
The useful life refers to the period during which an object brings profit to the organization.
The term is set by the entity independently, based on operational characteristics and taking into account the “Classification of fixed assets”.
According to this, depreciable property objects are divided into depreciation groups according to their useful periods.
Depreciation is calculated according to fixed assets, the list of which is given in clause 17 of PBU 6/01.
Depreciation rates are determined depending on membership in depreciation groups or on the period of useful use.
How to determine the depreciation rate
The Tax Code of the Russian Federation provides only two options for calculating depreciation - linear and non-linear. Depreciation for an object is accrued from the beginning of the month following the month the property was put into operational use.
The calculation of depreciation amounts ceases after the full cost of the object has been repaid or when the property is deregistered for any reason.
To determine the depreciation amount, a special formula is used to calculate the depreciation rate, which depends on the chosen method for calculating depreciation amounts.
Formula applied
When using the linear method, the depreciation rate is established in relation to each individual object.
A formula of this type is used for this:
With the straight-line method, depreciation amounts are calculated evenly as part of expenses throughout the entire useful life.
If an organization uses a non-linear method, then depreciation amounts are calculated not for individual objects, but for the entire depreciation group in the aggregate.
In this case, the amount of depreciation is found by the formula:
When using the non-linear option, the procedure for establishing depreciation rates is used, established by law depending on the group of depreciable property:
| 1 | 14,3 |
| 2 | 8,8 % |
| 3 | 5,6 % |
| 4 | 3,8 % |
| 5 | 2,7 % |
| 6 | 1,8 % |
| 7 | 1,3 % |
| 8 | 1,0 % |
| 9 | 0,8 % |
| 10 | 0,7 % |
How to calculate as a percentage
You can determine the depreciation rate in percentage terms using the formula of the linear method or in accordance with the number of the depreciation group.
You can also use the following formula:
The period of useful use of an object in accounting can be determined independently, but guidance from the Classifier will help avoid unnecessary confusion.
When an object can be classified into several depreciation groups, the final choice should be based on the expected life of the property.
Calculation examples
As an example, we can consider a situation where an organization purchased equipment with an initial price of ninety million rubles. Modernization and replacement of worn-out equipment cost twenty thousand rubles.
The salvage value of the worn-out equipment was nine and a half thousand rubles. The useful life is set at five years.
Thus it turns out:
To determine the annual depreciation rate, the following calculation is carried out:
Motor transport
Motor transport is recognized as a fixed asset in both accounting and tax accounting, since the period of its useful use obviously exceeds twelve months.
It is advisable to determine the period of useful use of vehicles using the Classifier, which will help bring tax and accounting accounting as close as possible.
Having established membership in a specific depreciation group, it is possible to establish a period of any duration within the period of the selected group.
In accounting, depreciation on vehicles can be calculated in any of the possible ways. For tax accounting purposes, depreciation is calculated in the manner prescribed by -259 of the Tax Code of the Russian Federation.
As an example, consider the purchase of a car by an LLC. The organization uses the straight-line method of calculating depreciation.
The useful life period is determined to be five years. This means that the depreciation rate is:
You can use a simpler method to determine the depreciation rate.
If the depreciation rate for the entire useful life period is taken as 100%, then the annual depreciation rate is calculated very simply: 
Buildings and structures
To determine the depreciation rate, the formula is used:
The calculated rate is applied relative to the residual value of the equipment. As soon as the residual value equals twenty percent of the original value, the procedure for calculating depreciation amounts changes.
Let's calculate the monthly depreciation rate:
K =100% = 1.04%
Thus, depreciation equal to 1,404 rubles will be charged monthly on the machine. (135,000 1.04%).
As already mentioned, for tax purposes, depreciation can also be calculated using the non-linear method. To do this, the residual value of the fixed asset at the beginning of the month is multiplied by its depreciation rate. And in the first month of operation of a fixed asset, depreciation is calculated from its original cost. But, as noted above, after the residual value of a fixed asset becomes equal to 20 percent of its original cost, the procedure for calculating depreciation must change. Next month, this residual value is taken as the base value and depreciation from it is calculated in equal shares (as with the straight-line method). This is stated in paragraph 5 of Art. 259 Tax Code.
The monthly depreciation rate is calculated using the formula:
,
where K is the depreciation rate as a percentage;
n is the useful life of the fixed asset in months.
Example 2
In January 2002, Pride LLC purchased a computer worth 48,000 rubles. (including VAT - 8,000 rubles) and put it into operation in the same month. According to the accounting policy, the enterprise calculates depreciation of fixed assets for tax purposes using a non-linear method.
The classification places computers in the third depreciation group. Their useful life can range from three years one month to five years inclusive. The organization has determined that the lifespan of the computer will be three and a half years (42 months).
Depreciation of the computer must be calculated from February 2002. Its depreciation rate will be:
In February, depreciation of 1,904 rubles will be accrued. (40,000 rubles 4.76%), and in March – 1,813 rubles. ((RUB 40,000 – RUB 1,904) 4.76%).
So depreciation will need to be charged until the residual value of the computer drops to 8,000 rubles. (RUB 40,000 20%).
In October 2004, the residual value of the computer will be 7,960 rubles. Therefore, from November 2004 until the end of its useful life (until June 2005 inclusive, i.e. within 8 months), depreciation will need to be charged in the amount of 995 rubles. ( 
).
The Tax Code establishes restrictions on the use of the non-linear method in relation to buildings, structures, transmission devices included in the eighth - tenth depreciation groups.
To compare linear and nonlinear methods, it is advisable to draw up a table of depreciation charges, where you can clearly depict their dynamics.
Example 3
Let's take the following initial data to build the table: the initial cost of the fixed asset is 500,000; The useful life is 20 months. Accordingly, the depreciation rate for the linear method will be 
= 5%, and for nonlinear - 
= 10%.
| Linear method | Nonlinear method |
||||||||
| Initial cost. | The term is useful. use | Initial cost. | We're standing there. | The term is useful. use | |||||
. Depreciable property Property, results of intellectual activity and other objects of intellectual property are recognized that are owned by the taxpayer, are used by him to generate income and the cost of which is repaid by calculating depreciation. Depreciable property is property with a useful life of more than 12 months and an original cost of more than 40,000 rubles.
Not subject to depreciation land and other natural resources (water, subsoil, other natural resources), inventories, goods, unfinished capital construction projects, securities and other property.
Cushioned property is registered at its original cost, determined in accordance with Article 257 of the Tax Code of the Russian Federation, and is distributed among depreciation groups in accordance with its useful life. The useful life is determined by the taxpayer independently on the date of commissioning of the depreciable property. Taxpayers have the right to include in the expenses of the reporting (tax) period the costs of capital investments in the amount of no more than 10% (no more than 30% in relation to fixed assets belonging to the third to seventh depreciation groups) of the original cost of fixed assets. This benefit does not apply to fixed assets received free of charge. If taxpayers use this right, then the corresponding fixed assets, after their commissioning, are included in depreciation groups at their original cost minus the depreciation bonus. In the event of the sale of the specified fixed assets within five years from the date of commissioning, the amounts of expenses previously taken into account when forming the tax base are subject to restoration and inclusion in the tax base.
Methods for calculating depreciation
The Tax Code of the Russian Federation provides for two methods of calculating depreciation:
- linear method;
- nonlinear method.
The method of calculating depreciation is established independently in relation to all objects of depreciable property and is reflected in the accounting policy for tax purposes. Changing the depreciation calculation method is allowed from the beginning of the next tax period. In this case, the taxpayer has the right to switch from the non-linear method to the linear method of calculating depreciation no more than once every five years.
Depreciation is calculated separately for each depreciation group (subgroup) when using the non-linear depreciation method or separately for each item of depreciable property when using the linear depreciation method.
Regardless of the depreciation method established by the taxpayer in the accounting policy for tax purposes, the straight-line depreciation method is applied to buildings, structures, transmission devices, and intangible assets included in the eighth to tenth depreciation groups.
In relation to other objects of depreciable property, regardless of the period of putting the objects into operation, the method of calculating depreciation that is established by the taxpayer in the accounting policy for tax purposes is applied.
When applying the linear method of calculating depreciation, the amount of depreciation accrued for one month is determined as the product of the original (replacement) cost of the depreciable property and the depreciation rate determined for this object. The depreciation rate is determined by the formula:
K= 1/p - 100%,
- TO— depreciation rate as a percentage of the original (replacement) cost of the depreciable property;
- P— useful life of a given object, expressed in months.
When calculating depreciation using the non-linear method, the total balance of each depreciation group is reduced monthly by the amount of depreciation accrued for this group. The amount of depreciation accrued for one month for each depreciation group is determined based on the product of the total balance of the corresponding depreciation group at the beginning of the month and depreciation rates:
A=Bk/100,
- A— the amount of depreciation accrued for one month for the corresponding depreciation group;
- IN— total balance of the corresponding depreciation group;
- To— depreciation rate for the corresponding depreciation group.
In order to apply the non-linear method of calculating depreciation, the following depreciation rates are applied.
Depreciation group - Depreciation rate (monthly):- First - 14.3
- Second - 8.8
- Third - 5.6
- Fourth - 3.8
- Fifth - 2.7
- Sixth - 1.8
- Seventh - 1.3
- Eighth - 1.0
- Ninth - 0.8
- Tenth - 0.7
Methods for calculating depreciation of fixed assets
In accordance with Regulations on accounting of fixed assets and Methodological guidelines depreciation amount for any method of calculating depreciation determined taking into account the useful life of fixed assets.
See further: Depreciation of fixed assets is carried out using one of the following methods of calculating depreciation:- in a linear way;
- reducing balance method;
- the method of writing off the cost by the sum of the numbers of years of useful life;
- by writing off the cost in proportion to the volume of production.
The use of one of the methods for a group of homogeneous fixed assets is carried out throughout the entire useful life.
Linear depreciation method
At linear method The annual amount of depreciation is determined based on initial cost object of fixed assets and depreciation rates, calculated taking into account .
Example. An object worth 120,000 rubles was purchased. with a useful life of 5 years. The annual depreciation rate is 20%. The annual amount of depreciation charges will be 24,000 rubles. (120000 * 20/100).
Depreciation using the reducing balance method
At reducing balance method The annual amount of depreciation is determined based on residual value object of fixed assets for beginning of the reporting year And depreciation rates, calculated taking into account the useful life of this object and the acceleration coefficient established in accordance with the legislation of the Russian Federation. The acceleration coefficient is applied according to the list of high-tech industries and efficient types of machinery and equipment approved by federal executive authorities.
For movable property that constitutes the object of financial leasing and is classified as the active part of fixed assets, an acceleration factor of no higher than 3 may be applied in accordance with the terms of the leasing agreement.
Example. An item of fixed assets worth 100 thousand rubles was purchased. with a useful life of 5 years. The annual depreciation rate is 40. The depreciation rate calculated based on the useful life, amounting to 20%, increases by acceleration factor 2(100 thousand rubles / 5 = 20 thousand rubles)(100 * 20 thousand rubles / 100 thousand rubles * 2) = 40.
IN first year of operation the annual depreciation rate is determined taking into account the initial cost formed when the object was capitalized and will amount to 40 thousand rubles. In second year operation, depreciation is accrued in the amount of 40% (100 * 40 / 100) of the residual value, i.e. the difference between the initial cost of the object and the amount of depreciation accrued for the first year ((100 - 40) * 40 / 100) and will amount to 24 thousand . rub. IN third year operation - in the amount of 40% of the difference between the residual value of the object formed at the end of the second year of operation and the amount of depreciation accrued for the second year of operation, and will amount to 12.4 thousand rubles. ((60 - 24) * 40 / 100), etc.
When the residual value of fixed assets will reach 20% of the original cost, this balance is fixed, the monthly depreciation amount is determined by dividing the fixed residual value of fixed assets by the number of remaining months until the end of their useful life (Article 259 of the Tax Code of the Russian Federation).
Depreciation by writing off the cost based on the sum of the numbers of years of useful use
At method of writing off cost by the sum of the numbers of years of useful life the annual amount of depreciation charges is determined taking into account initial cost object of fixed assets and annual ratio, where the numerator is the number of years remaining until the end of the object’s service life, and the denominator is the sum of the number of years of the object’s service life.
Example. An item of fixed assets worth 150 thousand rubles was purchased. The useful life is set at 5 years. The sum of the numbers of years of service life is 15 years (1 + 2 + 3 + 4 + 5). In the first year of operation of the specified facility, depreciation may be charged in the amount of 5/15, or 33.3%, which will be 49.95 thousand rubles, in the second year - 4/15, which will be 39.9 thousand rubles, in the third year - 3/15, which will be 30 thousand rubles. etc.
Depreciation by writing off the cost in proportion to the volume of production
When writing off the cost in proportion to the volume of production (work), depreciation charges are calculated based on the natural indicator of the volume of production (work) in the reporting period and the ratio of the initial cost of the fixed asset item and the estimated volume of production (work) for the entire useful life of the fixed asset item.
Example. A car with a carrying capacity of more than 2 tons, with an expected mileage of up to 400 thousand km, was purchased, costing 80 thousand rubles. In the reporting period, the mileage is 5 thousand km, therefore, the amount of depreciation charges, taking into account the ratio of the original cost and the expected volume of production, will be 1 thousand rubles. (5 * 80 / 400).
Reflection in accountingDepreciation charges accrued on fixed assets are reflected in accounting in the reporting period to which they relate, and are accrued regardless of the organization's performance in the reporting period.
The amount of accrued depreciation is reflected in accounting as a debit to the accounts of production or distribution costs (except for leased fixed assets) in correspondence with the credit of the depreciation account (account 02 “Depreciation of fixed assets”).
Rice. 4.3. General scheme of correspondence of accounts when calculating depreciation of fixed assetsDepreciation charges for fixed assets during the reporting year are calculated monthly, regardless of the calculation method used, in the amount of 1/12 of the calculated annual amount. The beginning and end of depreciation calculation is from the first day of the month following the month of commissioning or, respectively, disposal of the fixed asset. After the end of the useful life of fixed assets, depreciation is not charged.
Any enterprise has assets on its balance sheet that are used for production and administrative purposes. During operation, it is subject to natural wear and tear: furniture, equipment, production, commercial, office equipment, vehicles and other fixed assets over time lose their original characteristics, become obsolete, their technical condition deteriorates, and, consequently, their value decreases.
When registering property for accounting, it is assigned a certain value in monetary terms, initially equal to the purchase price, and, of course, it must be regularly adjusted downward. To do this, accounting writes off part of the cost of fixed assets, which is called depreciation.
What fixed assets are depreciable?
Depreciable property includes tangible and intangible assets that belong to an enterprise by right of ownership or ownership, are used to make a profit (production, provision of services and work) for more than 12 months and have an initial cost of over 40,000 rubles.
Thus, depreciation of fixed assets is applied to the following groups of assets:
- premises, buildings, communications, engineering networks;
- equipment, devices;
- mechanized and hand tools, work equipment;
- office equipment, furniture;
- vehicles;
- breeding stock, working animals;
- planting perennial crops;
- intangible assets (intellectual property objects).
Land plots and other natural resources, unfinished construction projects, stock market instruments, art objects, fixed assets received as a gift or acquired through targeted subsidies are not subject to depreciation.
Rules for calculating depreciation
We list the basic rules for calculating depreciation:
- Upon receipt of the property, it is necessary to make depreciation deductions from it, starting from the first day of the month following the month the object was put into operation.
- Depreciation calculations end on the first day of the month after the cost of the property has been fully repaid or written off from the balance sheet.
- Depreciation should be suspended for property mothballed for 3 months or more; sent for major repairs or reconstruction for a period exceeding a calendar year.
- The calculation of depreciation does not depend on the financial results of the enterprise for the reporting period and must be reflected in the accounting records of this period.
- Depreciation amounts are calculated by accumulating in a special account in the amount of 1/12 of the annual depreciation rate monthly.
- Residential facilities, external amenities, and property of non-profit organizations are depreciated at the end of the year by recording accrued depreciation amounts in the off-balance sheet account “Depreciation of fixed assets.”
Useful life and depreciation groups of fixed assets
Depending on the useful life of fixed assets, property is distributed into depreciation groups (see table). In tax accounting, the grouping provided for by the Tax Code of the Russian Federation is used, and the setting of the depreciation period in accounting most often coincides with it.
A complete classification of fixed assets by useful life is contained in the Government Decree of January 1, 2002, since the publication of which certain property assets have been periodically added and excluded. We provide an approximate list of objects of depreciation groups in accordance with the current edition of the document.
| No. of depreciation group | Depreciable property | Useful life |
| 1 | drilling, gas, oil production equipment; a tool related to small-scale mechanization in forestry; manual and mechanized installation, construction, and production equipment; medical instruments |
1–2 years |
| 2 | cargo lifts and cranes; some types of conveyors; submersible pumps; feed harvesting machines; mining tools; computer facilities (computer and network equipment); household and sports equipment |
2–3 years |
| 3 | diesel and thermal generators; forestry tractors, sawmills; separators, agricultural equipment; elevators; sewing machines; copy machines; scales, laboratory and household measuring instruments; cars and minibuses, bicycle, motorcycle, water transport; service dogs |
3–5 years |
| 4 | kiosks, tents made of wood, metal structures, film materials; pipelines; forklifts, excavators; buses; machines for furniture production; equipment for welding work; radio electronics; perennial plantings of berries; draft animals; office, commercial, institutional furniture |
5–7 years |
| 5 | prefabricated, mobile non-residential objects; heating mains and gas pipelines; livestock farms; Agreecultural machines. Agreecultural equipment; metal and wood machines; heating boilers, furnaces; weapon; equipment for pulp, paper and polymer production; film and photographic equipment; small vessels; plantings of perennial oilseeds and citrus crops |
7–10 years |
| 6 | oil production wells; frame-reed and other lightweight dwellings; plumbing equipment; foundry machines; equipment for reinforced concrete production, textile industry, high-voltage electrical networks; ships and air transport; agricultural plantings of perennial stone fruit plants |
10–15 years |
| 7 | wooden, frame, adobe non-residential objects; steel, cement sewers; mines; open hearth furnaces; bridges and roads; transformers and other power supplies; vineyards |
15–20 years |
| 8 | armored, metal cabinets, doors, etc.; non-residential buildings with floors; blast furnaces; railways, city contact networks for electric transport; cargo-passenger river vessels |
20–25 years |
| 9 | ceramic sewer networks; stone storage facilities, buildings with reinforced concrete floors; wastewater treatment plants; sea vessels |
25–30 years |
| 10 | residential buildings, permanent non-residential structures; forest shelterbelts; perennial landscaping plantings |
More than 30 years |
The depreciation period for property that does not fall under the classification is determined by the enterprise independently when it is placed on the balance sheet, based on the expected time during which the object will bring economic benefits. When installing, an organization can be guided by factors such as the intensity of use of the property, the influence of aggressive environmental factors, which can accelerate physical deterioration. As the material assets are used, this period may be revised, for example, if the technical condition has improved due to modernization or reconstruction.
Methods and norms for calculating depreciation for tax purposes
Tax legislation provides for 2 methods of calculating depreciation:
- Linear method - involves accrual for each object separately. Regardless of the adopted accounting policy, this method is mandatory for buildings and structures, intangible assets, transfer assets from depreciation groups No. 8 - 10. Depreciation using the straight-line method is charged on the initial cost of the asset.
- The nonlinear method calculates depreciation not for individual objects, but for groups. The calculations are based on the residual book value of the property included in a certain group of fixed assets.
The enterprise itself chooses the method that will be applied to all depreciable objects, and can switch from the non-linear to the linear method once every five years, from the beginning of the tax year.
The calculation of the amount to be written off is based on the concept of depreciation rate.
With the straight-line method, the depreciation rate is calculated as a monthly percentage of the original cost of the property:
K=1/n * 100, where
K – depreciation coefficient;
n is the useful life of the object in months.
Depreciation rates for each group for non-linear accrual are established by Art. 259.2 Tax Code of the Russian Federation:
| Group number | K, in % per month |
| 1 | 14,3 |
| 2 | 8,8 |
| 3 | 5,6 |
| 4 | 3,8 |
| 5 | 2,7 |
| 6 | 1,8 |
| 7 | 1,3 |
| 8 | 1,0 |
| 9 | 0,8 |
| 10 | 0,7 |
Accounting methods for calculating depreciation
- linear;
- reducing balance method;
- write-off of cost based on the sum of years of useful life;
- production method.
Throughout its useful life, depreciation on an asset must be written off using the same method.
Linear depreciation
With the straight-line method, depreciation is calculated at the original cost of fixed assets, which is determined in accordance with Art. 257 of the Tax Code of the Russian Federation, as the sum of the costs of their purchase, transportation, installation, commissioning and other work necessary to begin operation.
The amount of depreciation is defined as:
A=St*K, where
A – the amount of depreciation for the month;
St – initial cost of the fixed asset;
K – depreciation rate.
Example: an organization purchased property in the amount of 120,000 rubles, its useful life is 5 years. Accordingly, the monthly depreciation rate will be 1.66%, annual - 20%. Thus, the accounting department will write off 24,000 rubles of depreciation charges for the year.
Declining balance depreciation
The reducing balance method is based on determining the annual amount of depreciation based on the residual value of the property at the beginning of the reporting period. This amount can be adjusted taking into account the acceleration coefficient permitted for use for a number of high-tech industries and equipment.
For example, an object worth 100,000 rubles has a service life of 5 years. According to the law, for this type of property, enterprises can independently set the acceleration factor (no more than 3). In this case, accelerated depreciation for the year will be 40% (annual rate 20% * acceleration factor 2), the amount of deductions is 40,000 rubles for the first year of operation. In subsequent years, depreciation will be calculated on the residual value of the object.
Write-off method based on the sum of the number of years
This method is a calculation of depreciation based on the product of the original cost of a fixed asset and an annual coefficient. The coefficient in this case is the ratio: the number of years remaining until the end of the object’s service life, divided by the sum of the number of years making up this period. For example, with a useful life of 5 years, the sum of the numbers is 15 (1+2+3+4+5). Thus, in the first year of operation, depreciation will be 5/15 of the cost of the property, in the second year - 4/15, and so on until the end of the period.
These are the main methods of calculating depreciation used by most organizations. The last method, the so-called production method, has significant differences from the others.
Write-off of cost depending on production volumes
In this depreciation method, the useful life is not represented in years, but in expected production rates. The production method involves calculating depreciation in proportion to the actual volume of products created and services provided during the reporting period.
The write-off is made from the residual book value divided by the volume that is expected to be produced over the entire life of the fixed asset. For example, an organization purchased a vehicle for transportation, expecting that it would travel 400 thousand km during its operation. Based on the cost of the car being 800,000 rubles and the mileage for the reporting period being 5 thousand km, the amount of depreciation will be 5000*800000/400000=10,000 rubles.
Depreciation and intangible assets
If everything is clear with the depreciation of property, then what about intangible assets that are not subject to physical wear and tear and do not always have a useful life?
In fact, many intangible fixed assets have a service life that can be determined: this may be the validity period established in a license, patent, rights acquisition agreement, etc. If such information is not available, the useful period of use is taken to be 10 years or the life of the enterprise, if known.
Depreciation of intangible assets is calculated at residual value, and the methods used for this do not differ from the depreciation of property fixed assets. If the organization's activities are suspended, the write-off of the value of the intangible asset also temporarily ceases.
