Since 2017 there have been significant changes in the area accounting. This also affected depreciation groups, which changed in composition, but the number remained the same (10 groups). Consequently, for newly commissioned fixed assets, the calculation of monthly and annual depreciation changes in accordance with the new asset classifier.
List of methods for calculating depreciation of main objects
Depreciation charges are important for calculating the tax base for income taxes. This is especially true for new organizations, where expenses still exceed income. The choice of depreciation calculation method must be indicated in the accounting policy of the enterprise. You can use one of the options:
- Choose the most profitable method for calculating OS wear;
- Each group of fixed assets must use its own method for calculating depreciation.
Four methods of depreciation of main objects are used:
- Linear;
- As a result of the declining balance;
- Write-off by total number of years;
- Proportional to the volume of products produced.
Let's take a closer look at all the options for calculating OS wear and tear using examples.
Linear calculation
Very often, accountants choose the straight-line method of calculating depreciation of the main object. But to use it, you need to take into account the frequency economic activity enterprises. If production is seasonal and fixed assets are used inconsistently, then such depreciation will be inappropriate.
Let's look at calculating depreciation using the linear method using an example.
For the production of semi-finished products, on February 20, the organization purchased equipment for the production of products in the amount of 150,000 rubles. After installation, on March 3, the machine was put into operation. According to the classification of fixed assets, the equipment belongs to group 4 and its service life is 5 years, i.e. 60 months. Depreciation begins from the next month after commissioning, in our case from April 1.
The monthly depreciation charge is:
- 150,000/60(months)=2500 rub.
For 5 years, every month the accountant records the following entry:
- Dt20 Kt02 – 2500 rubles, depreciation has been accrued on equipment for the production of semi-finished products.
Calculate Declining Balance Depreciation
The peculiarity of this method is the calculation of annual depreciation at the beginning of the period, the amount of which is equal to the final cost multiplied by a certain percentage.
Let's take as an example the conditions of the problem given above and calculate depreciation charges on equipment. First of all, let’s calculate the annual wear rate %:
- 100%:5=20%, which means that in the first year the depreciation of the equipment will be 30,000 (150,000x20%), monthly - 2500 (30,000:12);
- Second year – 150,000-30,000=120,000, the final cost of the equipment. Depreciation will be 120,000x20%=24,000, monthly - 2000 (24,000:12);
- Third year – 120,000-24,000=96,000, annual depreciation will be 96,000x20%=19,200, monthly – 1,600 (19,200:12 months);
- Fourth year – 96,000-19,200=76,800, annual depreciation – 76,800x20%=15,360, monthly – 1,280 (15,360:12 months);
- Fifth year – 76,800-15,360=61,440, annual depreciation – 12,288 (61,440x20%). And so on until the initial cost is fully repaid.
It is important to know that the method of writing off depreciation as a result of reducing the balance for fixed assets differs from intangible assets, in that the residual value of intangible assets is calculated at the beginning of each month, and for fixed assets - at the beginning of the year.
Write-off of depreciation by total number of years
This method involves writing off most of the cost of a fixed asset in the first years of operation. The cost is written off completely.
An example for calculating depreciation using the write-off method for the total number of years:
The company began to operate a production plant costing 102,000 rubles, the SPI is 5 years. The total number of years is 15 (1+2+3+4+5). Let's calculate depreciation for five years:
- 1st – 102,000x(5:15)=33,999 rubles, residual value – 102,000-33,999=68,001 rubles;
- 2nd – 102,000x(4:15)=27,200 rubles, residual value – 68,001-27,200=40,801 rubles;
- 3rd – 102,000x(3:15)=20,400 rubles, residual value – 40,801-20,400=20,401 rubles;
- 4th – 102,000x(2:15)=13,599 rubles, residual value – 20,401-13,599=6,802 rubles;
- 5th – 102,000x(1:15)=6,800 rub.
The method of writing off depreciation based on the sum of the numbers of years of SPI has economic feasibility in terms of reducing tax burden in the first years of operation of the fixed asset.
Only with the reducing balance method depreciation calculation acceleration factor can be used. Its use requires strong evidence-based evidence. Based on Article 259.3 of the Tax Code, the acceleration coefficient for OS wear can be used in the following cases:
- The influence of external factors causing an accelerated aging process;
- Locations near an aggressive technological environment that can cause an emergency;
- Using the equipment in uninterrupted mode, i.e. in three shifts;
- Fixed assets with high energy efficiency. These include household appliances.
Organizations using the method of reducing the balance with an acceleration coefficient independently set the value of the coefficient, but not more than 2%, while having convincing, substantiated documentation.
Calculation of depreciation according to the volume of output
It is advisable to use the method of writing off the cost of fixed assets according to the volume of manufactured products in the case when the equipment has a certain planned production volume of work. To calculate we need the following indicators:
- Initial cost of the main object;
- Service life of the facility;
- Actual quantity of products produced;
- The amount of depreciation for one product.
Let's look at this method using an example:
The company purchased equipment worth 315,000 rubles for the production of products. The manufacturer guarantees the production of 53,000 pieces of products using this equipment for the entire period of operation. SPI is defined for 3 years. For one product, wear and tear will be 5.94 rubles. (315000/53000 pcs.). Let's calculate the amount of depreciation write-off:
- For the first year, the expected production will be 16,000 units. Calculation of the amount of annual depreciation 95,040 rubles = 16000x5.94. The residual value of the object at the end of the reporting period is 219,960 rubles = 315,000-95,040;
- In the second year, product output will be 18,000 units. Depreciation per year will be 106,920 rubles = 18,000x5.94. Residual amount of fixed assets – 113,040 rubles = 219,960-106,920;
- For the third year - production plan is 19,000 units. For the year, depreciation is 113,040 rubles.
This method is for production process. The higher the productivity of the main object, the greater the amount of accrued depreciation.
Calculation of wear and tear during modernization, reconstruction and repair of OS
As a result of the production cycle, changes in the operation of equipment often occur. To operate the operating system, the enterprise uses business operations such as modernization, reconstruction or repair.
As a result of technical changes wear calculation equipment is suspended. We will consider below how to calculate depreciation on the main object after changes exceeding 12 months.
An example of calculating equipment wear and tear after technical changes
To improve production at the enterprise, it was decided to modernize the machine, the cost of which is 115,000 rubles. The SPI is defined for 5 years. The company uses the linear method of calculating depreciation of the operating system.
Modernization costs amounted to 10,000 rubles, which increased the initial cost of the machine. The machine was put into operation 13 months later; no depreciation was accrued during the modernization.
- 115,000/60=1916.67 rub. – monthly depreciation charge until modernization. The main object worked for 12 months, the depreciation of which was 23,000.04 rubles = 1916.67 x 12 months. Residual value – 91,999.96 rubles = 115,000-23,000.04;
- The cost of the equipment after modernization was 101,999.96 rubles = 91,999.96 + 10,000. We continue to charge depreciation on the remaining amount. It starts from the next month after its commissioning;
- Monthly depreciation charges will be 2,914.28 rubles = 101,999.96/35 months.
The difference between the costs of modernization and repairs is that repair costs do not increase the cost of the main object and are attributed to the maintenance of the operating system in accounting.
Each enterprise chooses the optimal method for calculating depreciation of its main assets. And we must not forget that it must be described in your Accounting Policy.
Non-current assets are used to operate an organization over several operating cycles. During operation, they wear out, both physically and mentally. To take into account the impact of costs associated with the acquisition of these assets on the cost of products (goods), a depreciation (depreciation) mechanism is used. Let's consider what methods of depreciation exist non-current assets.
Methods for calculating depreciation in accounting
For fixed assets, there are the following depreciation methods in accounting:
- Linear. For the calculation, the initial cost and useful life (SPI) are taken.
- A = PS x N where
- A – depreciation for the year
- PS - initial cost of the object
- N – norm, which is determined by the formula
- H = 100% / SPI
- A = PS x N where
Example 1
The organization purchased a machine, SPI - 5 years, acquisition cost - 600 thousand rubles.
The amount of depreciation for each year of operation in in this case will be:
A = 600 x (100%/5) = 600 x 20% = 120 thousand rubles.
- Using reducing balance. For the calculation, the residual value of the object at the beginning of each year is used.
- A = OS x H, where
- OS - residual value, for the first year of use OS = PS
- A = OS x H, where
Example 2
Let's use the conditions of the first example.
The amount of depreciation for the first year will be the same as with the straight-line method, i.e. A1 = 120 tr. The residual value at the beginning of the second year will be:
OS = 600 – 120 = 480 tr.
Then depreciation for the second year will be equal to:
A2 = 480 x 20% = 96 tr.
- Based on cumulative years of useful use. The calculation uses the ratio between the remaining life and the sum of years of useful life.
- A = PS X (SR / SL), where
- CP – period remaining until the end of the facility’s operation
- SL – sum of numbers of years SPI
- A = PS X (SR / SL), where
Example 3
For SPI – 5 years
ST = 1 + 2 +3 +4 + 5 = 15
Depreciation for the first year (CP = 5) will be equal to:
A1 = 600 x (5/15) = 600 x 0.334 = 200.4 thousand rubles.
For the second year (SR =4)
A2 = 600 x (4/15) = 600 x 0.267 = 160.2 thousand rubles.
- Based on the volume of products (works). Here the ratio is used between actual volumes for the billing period and standard volumes for the entire SPI.
Of and On – actual and standard volumes
A = PS x (Of / He), where
Example 4
Let us assume that the standard operating time for the machine during the period of use is 10,000 hours. In the first year of operation it worked 2,500 hours, in the second – 2,000 hours. In this case, depreciation for the first and second years will be:
- A1 = 600 x (2500 / 10000) = 600 x 0.25 = 150 thousand rubles.
- A2 = 600 x (2000 / 10000) = 600 x 0.2 = 120 thousand rubles.
So, for fixed assets in accounting they use
Depreciation is also calculated according to intangible assets(NMA). are also applied to intangible assets, with the exception of one thing - calculation based on the sum of the numbers of years of useful use.
For intangible assets, there are a number of other features that should be taken into account when applying the indicated
- For intangible assets owned by non-profit organizations, depreciation is not accrued (clause 24 of PBU 14/2007).
- If it is impossible to determine SPI for an intangible asset, then depreciation is also not accrued (clause 23 of PBU 14/2007).
Methods for calculating depreciation in tax accounting
For tax purposes, the following methods of calculating depreciation charges are used:
- Linear. The calculation is carried out similarly to the methodology outlined in the previous section for “accounting” depreciation.
- Nonlinear. For this method, types of depreciation groups are used. Depreciation is calculated not for individual objects, but for groups as a whole. The monthly deduction amount is determined by the formula:
- A = OS x (K/100), where
- OS - residual value for the group at the beginning of the month,
- K - coefficient for the corresponding depreciation group (clause 5 of Article 259.2 of the Tax Code of the Russian Federation)
- A = OS x (K/100), where
In tax accounting, the same methods for calculating depreciation charges are used for depreciation of fixed assets and intangible assets.
Basic methods of calculating depreciation and their impact on financial results
When choosing a method for determining depreciation, it is necessary to take into account the influence of various factors.
If linear depreciation methods are used in accounting and tax accounting, the following is achieved:
- Identical methods of calculating depreciation will ensure that there are no deviations between the two types of accounting (provided that the useful lives are also the same).
- The likelihood of errors is reduced, because Linear methods for calculating depreciation are the simplest.
However, non-linear methods for calculating depreciation rates, as a rule, make it possible to quickly write off the cost of non-current assets as expenses. This is more consistent with the economic meaning of the operations being carried out and allows optimizing the costs of income and property taxes.
Which types of depreciation to use depend on the specific situation at the enterprise.
Conclusion
Calculation of depreciation charges is carried out using methods that can be divided into two main groups - linear and non-linear. Straight-line depreciation methods are simpler and avoid deviations between accounting and tax accounting. Non-linear depreciation methods are more complex, but more adequately reflect the dynamics of transferring the value of non-current assets to costs. In addition, these types of depreciation allowances allow you to save on tax payments. When choosing a specific depreciation method, you need to take into account all factors, both economic and organizational.
§ linear method;
§ reducing balance method;
§ method of writing off value based on the sum of the numbers of years of useful use;
§ method of writing off the cost in proportion to the volume of products (works).
In this case, the annual amount of depreciation charges is determined (clause 19 of PBU 6/01):
“with the linear method - based on the original cost or (current (replacement) cost (in case of revaluation) of an object of fixed assets and the depreciation rate calculated based on the useful life of this object;
with the reducing balance method - based on the residual value of the fixed asset item at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this item and a coefficient not higher than 3, established by the organization;
when writing off the cost by the sum of the numbers of years of its useful life - based on the original cost or (current (replacement) cost (in case of revaluation) of an object of fixed assets and the ratio, the numerator of which is the number of years remaining until the end of the useful life of the object, and the denominator is the sum of the numbers of years of the useful life of the object.
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 original cost of the fixed asset object and the estimated volume of production (work) for the entire fixed asset object.”
The use of one of the methods of calculating depreciation for a group of homogeneous fixed assets is carried out throughout the entire useful life of the objects included in this group.
With the linear method, the annual amount of depreciation is determined based on the original cost or current (replacement) cost (in case of revaluation) of an object of fixed assets and the depreciation rate calculated based on the useful life of this object.
The useful life of objects is determined by the organization independently when accepting the object for accounting.
The useful life of a fixed asset item is determined based on:
The expected useful life of this facility in accordance with the expected productivity or capacity;
Expected physical wear and tear, depending on the operating mode (number of shifts), natural conditions and the influence of an aggressive environment, the repair system;
Regulatory and other restrictions on the use of this object (for example, rental period).
In cases of improvement (increase) in the initially adopted standard indicators of the functioning of a fixed asset object as a result of reconstruction or modernization, the organization revises the useful life of this object.
Until January 1, 2002, when determining the useful life of fixed assets, organizations were guided by Resolution of the Council of Ministers of the USSR dated October 22, 1990 No. 1072 “On uniform standards of depreciation charges for the complete restoration of fixed assets of the national economy of the USSR.”
Based on the Letter from the Ministry of Finance Russian Federation dated August 29, 2002 No. 04-05-06/34, when applying this resolution for accounting purposes, organizations use the specified Classification to determine the useful life of fixed assets accepted for accounting (debit of account 01 “Fixed Assets”), starting from January 1, 2002.
Depreciation on fixed assets that were accepted for accounting before January 1, 2002 for accounting purposes continues to be accrued based on the useful life determined when registering the object and the depreciation calculation method chosen by the organization for a group of homogeneous objects.
Example 1.
The cost of the fixed asset is 260,000 rubles. In accordance with the classification of fixed assets included in, approved by Resolution No. 1, the object is classified in the third depreciation group with a useful life of over 3 years to 5 years inclusive. The useful life is set at 5 years. The annual depreciation rate is 20% (100% / 5 years), the annual depreciation amount is 52,000 rubles (260,000 x 20 / 100), the monthly depreciation amount is 4,333.33 rubles (52,000 / 12).
The reducing balance method for determining the useful life is established in the case when the efficiency of use of an item of fixed assets decreases with each subsequent year.
The annual amount of depreciation charges is determined based on the residual value of the fixed asset item at the beginning of the reporting year and the depreciation rate calculated based on the useful life of this item and a coefficient not higher than 3 established by the organization (clause 19 of PBU 6/01).
According to the new rules of paragraph 19 of PBU 6/01, introduced by Order of the Ministry of Finance of the Russian Federation No. 147n, when using the reducing balance method to calculate depreciation, an organization can apply a coefficient of no higher than 3.
The coefficient is set by the organization independently and its value must be reflected in the accounting policies of the organization. Previously, PBU 6/01 did not provide for this possibility. But in paragraph 54 Guidelines No. 91n stated that in accordance with the legislation of the Russian Federation, small businesses can apply an acceleration factor of 2; and for movable property constituting the object of financial leasing and attributed to the active part of fixed assets, an acceleration factor may be applied in accordance with the terms of the financial lease agreement no higher than 3. In practice, organizations could not apply this provision, since neither Federal law dated October 29, 1998 No. 164-FZ “On financial lease (leasing)”, nor Federal Law dated June 14, 1995 No. 88-FZ “On state support small business in the Russian Federation" such a coefficient has not been established.
Example 2.
The cost of the fixed asset is 260,000 rubles. Useful life is 5 years. Acceleration factor 2. Annual depreciation rate 20%. The annual depreciation rate taking into account the acceleration factor is 40%.
In the first year of operation:
The annual amount of depreciation charges will be determined based on the initial cost formed when the fixed asset item was accepted for accounting, and will amount to 104,000 rubles (260,000 x 40% = 104,000).
In the second year of operation:
Depreciation will be determined based on the residual value of the object at the end of the first year of operation and will be 62,400 rubles ((260,000 - 104,000) = 156,000 x 40%).
In the third year of operation:
Depreciation will be determined based on the residual value of the object at the end of the second year of operation and will be 37,440 rubles ((156,000 - 62,400) = 93,600 x 40%).
In the fourth year of operation:
Depreciation will be determined based on the residual value of the object at the end of the third year of operation and will be 22,464 rubles ((93,600 - 37,440) = 56,160 x 40%).
During the fifth year of operation:
Depreciation will be determined based on the residual value of the object at the end of the fourth year of operation and will be 13,478.40 rubles ((56,160 – 22,464) = 33,696 x 40%).
The accumulated depreciation over five years will be 239,782.40 rubles. The difference between the original cost of the object and the amount of accrued depreciation in the amount of 20,217.60 rubles represents the liquidation value of the object, which is not taken into account when calculating depreciation for years other than the last year of operation. In the last year of operation, depreciation is calculated by subtracting the salvage value from the residual value of the object at the beginning of the last year.
With this method, the annual depreciation rate is determined based on the original cost of the fixed asset object and the annual ratio, where the numerator is the number of years remaining until the end of the asset’s service life, and the denominator is the sum of the numbers of years of the useful life of the object.
Example 3.
The cost of the fixed asset is 260,000 rubles. Useful life is 5 years. The sum of the numbers of useful years will be 1 + 2 + 3 + 4 + 5 = 15.
In the first year of operation, the ratio will be 5/15, the amount of accrued depreciation will be 86,666.67 rubles (260,000 x 5/15).
In the second year of operation, the ratio is 4/15, the amount of accrued depreciation is 69,333.33 rubles (260,000 x 4/15).
In the third year of operation, the ratio is 3/15, the amount of accrued depreciation is 52,000 rubles (260,000 x 3/15).
In the fourth year of operation, the ratio is 2/15, the amount of accrued depreciation is 34,666.67 rubles (260,000 x 2/15).
In the last, fifth year of operation, the ratio is 1/15, the amount of accrued depreciation is 17,333.33 rubles (260,000 x 1/15).
When writing off the cost of a fixed asset in proportion to the volume of products (work, services), 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 products (work) for the entire useful life of the object fixed assets.
Example 4.
The cost of the car is 65,000 rubles, the estimated mileage of the car is 400,000 km. In the reporting period, the car's mileage was 8,000 km, the amount of depreciation for this period will be 1,300 rubles (8,000 km x (65,000 rubles: 400,000 km)). The amount of depreciation for the entire mileage period is 65,000 rubles (400,000 km x 65,000 rubles: 400,000 km).
End of the example.
Having analyzed various ways depreciation calculation, we can conclude that when using the reducing balance methods and writing off the cost by the sum of the numbers of years of the useful life, the amount of depreciation charges decreases over the years. When choosing one of these methods for calculating depreciation, accountants must remember that the accrued amount of depreciation affects products, work performed, and services provided.
In organizations with a seasonal nature of production, the annual amount of depreciation charges on fixed assets is accrued evenly throughout the period of operation of the organization in the reporting year.
The monthly depreciation rate in all cases will be 1/12 of the annual depreciation rate.
You can find out more about the issues related to the procedure for assessing fixed assets, the route of receipt, types of repairs and methods of disposal of fixed assets in the book of JSC “BKR-Intercom-Audit” “Fixed Assets”.
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).
Not subject to depreciation 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.
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 to major renovation, 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 should be reflected in accounting this period.
- Depreciation amounts are calculated by accumulating in a special account in the amount of 1/12 of the annual depreciation rate monthly.
- Housing facilities, external improvements, property 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; agricultural machines; 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 sources; 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 policies this method mandatory for buildings and structures, intangible assets, transfer assets from depreciation groups No. 8 - 10. Depreciation using the straight-line method is calculated on the initial cost of the asset.
- The nonlinear method calculates depreciation not for individual objects, but for groups. The basis for calculations is 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 |
Methods accounting accrual 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 missing, useful period use is assumed 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.
What is depreciation and why is it necessary, we explained in ours. In accounting and tax accounting, fixed assets (fixed assets) and intangible assets (intangible assets) are depreciated in cases provided for by law. In this case, only methods for calculating depreciation charges provided for by accounting or tax legislation are used. We will remind you about the existing methods for calculating depreciation of fixed assets and intangible assets in our consultation.
Accounting methods of depreciation
We present in the table the methods of calculating depreciation in accounting, which are used when calculating depreciation charges for fixed assets and intangible assets:
Let us recall that for all fixed assets included in one group of homogeneous objects, the same method of calculating depreciation charges must be applied (clause 18 of PBU 6/01). The group of homogeneous fixed assets may include buildings, structures, measuring instruments, computer technology, vehicles, etc. Which objects form a group of homogeneous objects can be clarified in.
For intangible assets, only in relation to positive business reputation, the depreciation method must always be used the same - linear (clause 44 of PBU 14/2007). For other intangible assets, you can choose any method for calculating depreciation, and separately for each object.
Methods for calculating depreciation in tax accounting
In tax accounting, depreciation deductions are calculated:
- linear;
- nonlinear.
The same rules apply to the choice of depreciation method in tax accounting for both fixed assets and intangible assets. So you should always use the linear depreciation method in the following cases (clause 3 of Article 259 of the Tax Code of the Russian Federation):
- by all organizations to buildings, structures, transmission devices and intangible assets whose useful life exceeds 20 years;
- the following organizations that use OS exclusively when extracting hydrocarbons from a new offshore field:
- organizations that own licenses for the use of subsoil areas within the boundaries of which a new offshore hydrocarbon deposit is located or it is planned to conduct search, assessment or exploration of such a deposit;
- operators of a new offshore hydrocarbon field.
For depreciation of other fixed assets and intangible assets, a linear or non-linear method can be chosen. At the same time, it must be applied immediately to all depreciable fixed assets and intangible assets.
You can read more about the non-linear method of calculating depreciation in tax accounting.
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