Depreciation is the transfer of the value of property, plant and equipment and is charged at rates. These norms are established by the state, and the enterprise only chooses the method of forming the depreciation fund. Depreciation ratios are developed for each specific group of fixed assets.
Necessary
- - balance sheet;
- - accounting policy of the organization;
- - calculator.
Instructions
Step 1
The depreciation rate is a statutory or otherwise established percentage of the book value of fixed assets, written off annually to the cost of production.
Step 2
There are two methods of depreciation in tax accounting. The most common is linear. It is used to calculate depreciation for buildings, structures, transmission devices. In this case, the depreciation rate for each object is determined by the formula: HA = (1 / n) * 100% / N - the useful life of the depreciable property, expressed in months.
Step 3
In the case of a non-linear method, this indicator does not depend on the useful life of a particular fixed asset. It is characterized by the assignment of property objects to groups, each of which has its own depreciation rate.
Step 4
The diminishing balance method involves the use of various coefficients for the calculation. They do not apply to fixed assets belonging to the first and third groups. Increasing - cannot be more than two, corrective - should not exceed three.
Step 5
The depreciation rate is determined based on the standard service life of fixed assets. It also depends on the cost, operating conditions, the level of scientific and technical progress, and state economic policy. Its increase contributes to the reduction of the amortization period.
Step 6
The annual depreciation rate is the ratio of the annual depreciation amount to the average annual value of fixed assets. Taking into account the costs of repairs and the liquidation formula takes the following form: NA = (Book value of OPF + Costs for capital repairs - liquidation value) / (Life cycle of OPF * Book value of OPF * Standard service life).
