How to calculate depreciation expense. Depreciation rates: calculation formula with explanations

Depreciation is the process of transferring the value of fixed assets to the cost of finished products (works, services) in the production process.

Depreciation deductions are deductions included in the cost of finished products and intended to reimburse the cost of the worn out part of fixed assets.

The amount of annual depreciation in this course work is calculated in a linear way. We calculate annual depreciation charges for each type of fixed assets using the formula:

where - the planned average annual cost of OS, thousand rubles;

Annual depreciation rate, %.

The annual depreciation rate is determined for each type of OS by the formula:

, (10)

where is the useful life of the OS object, years.

Let's calculate the annual depreciation rates and depreciation charges for each type of fixed assets:

Thousand rub.

Cars and equipment:

Thousand rub.

Transfer Devices:

Thousand rub.

Computer Engineering:

Thousand rub.

Instruments:

Thousand rub.

Vehicles:

Thousand rub.

Determine the total amount of depreciation in the planned year:

Thousand rub.

The results of depreciation calculations are summarized in Table 3.

Table 3 - Calculation of depreciation charges in the planned year

The concept of depreciation is familiar to everyone. Knowing all the subtleties associated with depreciation is especially useful for people who own their own business or enterprise.

Even the most expensive items wear out over time. The reasons for this are different - the conditions and period of operation, the impact of external adverse factors, misuse, and so on.

As a result, the item loses its original appearance, technical and operational characteristics, physical qualities and its original value. This phenomenon is called depreciation.

What you need to know

Depreciation is subject to all items without exception, including equipment. To correctly calculate depreciation, you need to know a lot of nuances.

Depreciation of equipment refers to the costs included in the cost of production.

Basic concepts

What is her role?

The role of depreciation charges cannot be underestimated. Thanks to this, the company forms its own cash source. It is used to finance not only the current activities of the organization, but also for investments.

Depreciation is a source of simple and extended reproduction of equipment. The accrual process is terminated at the end of the amortization period.

The amount of deductions, in addition to the initial cost of the equipment used, also depends on the depreciation strategy chosen by the enterprise.

Legal regulation

The main regulatory document governing the rules and amount of depreciation deductions in relation to equipment is.

The repayment of fixed assets is carried out by accruing depreciation. Payment is made in one of four ways:

Any of the four specified options for depreciation is chosen by the organization. However, if the accrual is used for taxation, then Art. 258- should be followed.

Depreciable equipment is divided into 10 groups depending on the service life. The classifier is regulated by the decree

Groups, in turn, are distributed depending on the length of service. In each of the 10 depreciation groups, subgroups can be distinguished:

1. Equipment and machines
2. Technical devices
3. Buildings and constructions
4. Dwellings
5. Perennial plantations.
6. cattle.

Each type of fixed asset has a personal code.

How to calculate equipment depreciation

Calculation formula

The calculation formulas are somewhat different from each other:

• the straight-line method involves multiplying the initial cost of the equipment by the depreciation rate, that is.

• reducing balance method - the basis of the method is the residual value of the equipment at the beginning of the established reporting period. In addition, the calculation formula also includes the depreciation rate and the statutory acceleration factor (in the amount of no more than 3, and in relation to high-tech industries - no more than 2) acceleration factor.

• depreciation over the life of the asset.

• write-off in proportion to the volume of output.

Determination of the norm of the indicator

The depreciation rate is expressed as a percentage and represents the ratio of a unit for the entire expected life of the equipment:

At what time

The distribution of depreciable property into groups in accordance with is made based on the terms of its operation.

This period is the period of time during which the equipment serves to perform the tasks set by the enterprise. The time frame is set by the taxpayer independently.

In the case of the acquisition of equipment that was previously in operation, when establishing the service life, it should be taken into account for how long the fixed asset served the previous owner.

It is imperative to reduce the useful life of such an object by this value.

If the period of use by the previous owner is equal to (or greater than) the period according to the Classification, the new owner has the right to build on safety requirements and other factors.

The economy also knows the options when it is preferable that the depreciation period be shorter. Thus, the use of accelerated depreciation of environmental protection equipment is carried out in order to increase the depreciation fund for future investments.

In addition, due to acceleration, the level is reduced. This policy is an effective tool for solving the problem of environmental pollution by production waste.

Reflection of operations by postings

In accounting, postings are usually understood as records in the database about possible changes in the state of accounting objects.

Typically, such records consist of a detailed description of the credited and debited objects and the numerical characteristics of their change (most often the quantity and value).

For depreciation, the following postings Kt 02 are used:

• Dt20;
• 23 account;
• 25 account;
• 26 account;
• 29 account;
• 44 account.

Depreciation is carried out according to Dt 44 accounts, for fixed assets, analytical accounting is carried out on account 01, and accounting for the inventory unit of depreciation is carried out on Kt 02. On account 02 of accounting, postings on depreciation of fixed assets are kept.

This consists in reflecting the amount of depreciation for each of the objects (equipment) in the credit of both the balance sheet and the passive account.

The debit reflects the write-off of the depreciation amount in the event of disposal of a non-current asset. Perhaps this is when:

The cash withdrawal operation is accompanied by a posting: write-off of accrued depreciation, posting Dt 02 Kt 01.

Eventually:

For production equipment

All costs upon receipt of fixed assets of production from suppliers are classified as long-term investments. In turn, this is reflected in the accounting for CT "Settlements with suppliers" 60.01.

Also, costs are taken into account for Dt:

The commissioning of production equipment must necessarily be reflected in the accounting in Dt 01.01 and Kt 08.04 (cost without).

Each of the considered operations is performed both manually and with the help of a special accounting program.

If medical

Medical commercial organizations are also subject to reflection in accounting, if they receive funding from the target budget.

The funds received can be directed to:

• financing the purchase, construction or acquisition of a fixed asset;
• covering the current expenses of the institution;
• , including losses;
• providing financial support in the form of emergency assistance to the enterprise.

Accounting and tax accounting also reflects the "social package" provided today to employees by many employers.

The concept of "social package" means voluntary medical insurance for employees. In doing so, the company performs the following operations:

• conclusion ;
• payment of all necessary contributions under the concluded agreements;
• recognition of the fact that the personnel received insurance;
• acceptance of all costs of payment of contributions under the concluded insurance contracts as part of the company's expenses.

There is no consensus on the write-off of expenses in accounting. Insurance costs can be accounted for in two ways:

• on account 97 (fixing the costs of future periods to be repaid in the future, as insurance costs are included in current costs).

Wires used:

• for account 76 (as expenses are included in current expenses):

TV

• development of brochures, posters, advertising cards;
• development and production of branded packaging, packages, promotional souvenirs;
• media announcements;
• outdoor and illuminated advertising;
• production of billboards;
• window dressing;
• promotional activities and promotions;
• other expenses of PBU.

On the basis of all the above expenses are required to be included in the accounting report in the reporting period in which they were committed. Accounting is carried out according to DT "Sales costs" 44.

dental

The material costs of dental clinics are the costs of purchasing medical supplies and materials used in the work.

The costs include the cost of repairing equipment, as well as payment for services of third parties.

Materials must be released from the warehouse according to Dt "Materials" 10 and credit 10 of the sub-account "Materials in stock". The write-off of materials is reflected in Dt 20 (or "Main production").

On the issues of depreciation, there is more than one point of view on its meaning, significance and role in the economy. The process of gradually transferring the cost of equipment to manufactured products is important.

It counts in every industry, from large-scale enterprises to private dental practices. It is impossible to bypass depreciation, you just have to study all the nuances of its accrual and write-off for successful business.

Depreciation of fixed assets at the enterprise is inevitable. That is why in accounting there is the concept of depreciation.

The calculation of this parameter allows you to compensate for costs with a certain frequency, regardless of the production cycle and seasonal characteristics. We will talk more about this topic later.

What is depreciation?

Any depreciation is expressed in terms of money. Since everything eventually becomes obsolete and becomes unusable, depreciation is expressed in a very specific amount.

In the process of production and work, there is a gradual wear and tear of fixed assets, so they require replacement as a consequence. So that funds for the purchase of new equipment do not have to be found, the accounting department keeps records of them in advance.

Wear occurs:

• moral;
• physical.

Over time, the products manufactured by competitors are improved, their quality is growing due to technical progress, the commissioning of new machines, perfect developments. Sooner or later, but you have to bring something new to the enterprise, develop, otherwise wear and tear is considered moral.

The concept of wear physical implies a gradual devaluation of the funds used. This can happen both during operation and as a result of equipment downtime. Both of these categories are laid down in advance in the cost of the final product of any company.

Depreciable property

All fixed assets that are on the balance sheet of the enterprise act as depreciation assets. What exactly is meant by this concept?

Among them:

1. The building itself.
2. Equipment.
3. Furniture.
4. Vehicles.
5. Office equipment and more.

All these funds are on the right of ownership or management. Some of them are not included in this list. These include:

• residential premises, if they do not serve the company for the purpose of earning money (they are not used as an office, retail and other premises);
• objects of nature management;
• allotments of land in any quantity;
• any equipment and objects that were not purchased, but received as a gift.

Thus, if a company receives something for free, it cannot be included in the depreciation list. The main question for novice accountants is how to make accruals correctly, since professionalism comes only with experience.

Methods for calculating depreciation

There are several ways to perform depreciation calculations. All of them are approved for use. Use of other methods is prohibited. Let's consider each of them separately.

Linear (uniform) method

This method is used most often, considering it the simplest and most convenient. Its essence lies in the fact that an equal part of depreciable funds is accrued in installments annually. An important nuance to remember: the calculation is not suitable for obsolescence.

The following parameters are included in the formula:

• H a - the norm;

As for the concept of the depreciation rate, which is used not only for this calculation method, a table with the values ​​​​of this parameter can be found in Article 259.2 of the Tax Code.

The formula is as follows: X \u003d P * H a / 100.

It is very simple and understandable. As an example, consider the case when a company has acquired and taken on a balance sheet a multifunctional device. Its initial cost was 12,000 rubles. We calculate the amount that needs to be written off for depreciation annually, provided that the service life of this equipment is 6 years.

According to the formula, it will be 2,000 rubles.

When at the end of the payments after 6 years the residual value becomes zero, this will mean that the cost has been offset. However, the device can continue to work if it is in good condition. This applies to all calculation methods.

Nonlinear (accelerated) method

It is called so because the calculation is carried out not for each object, but for groups. This greatly speeds up the process. It is necessary to proceed from the balance at the beginning of the year. The nuance is that for groups 8 to 10, only the above method (linear) can be used.

Calculation formula: Х=В*К/100.

• B - the overall balance of a single group;
• K - the rate of deductions;
• X - the amount of deductions according to the calculation.

Consider an example: an enterprise conducts calculations using a non-linear method. For example, the total balance of the second group is 2,000,000 rubles. We calculate everything according to the formula at the beginning of the year (January 1):

2000000*8,8/100=176 000.

Decreasing balance method

The method is good because, despite its simplicity, it is considered to be accelerated. If there are objects on the balance sheet that wear out very quickly, it is legitimate to calculate them using this method.

For example, some equipment becomes obsolete in a year or two, it can work for an additional two years, but the return will be different.

The accountant must use the formula: X \u003d P rest * (k * N a / 100).

Unknowns:

• Р ost - residual value;
• k is the acceleration factor;
• X - the amount of deductions according to the calculation;
• N a is the norm.

The amount of the balance is determined at the beginning of the year. As an example, consider the purchase by an enterprise of a powerful computer at a price of 1,200,000 rubles. Its service life is determined at 8 years. The acceleration factor is taken as 2.

Let's make a calculation: the depreciation rate will be 25% (100%: 8 * 2). At the beginning of the year, the amount of 1,200,000 rubles is taken, debited according to the formula 300,000 rubles, the balance is 900,000 rubles. The next year, the write-off amount will be lower, and so on.

Write-off method based on the sum of numbers of years of useful life (sum of numbers method)

This method allows you to explore the concept of object lifetime in more detail. Consider the formula:

X \u003d P * (T ost / T * (T + 1) / 2, where from the unknowns:

• T ost - the number of years remaining until the end of the period of use;
• T - period of use;
• X - the amount of deductions according to the calculation;
• P is the initial cost of the calculated object.

Let's consider a specific example. On the balance sheet of the organization is a small machine worth 200,000 rubles, the operational life of which is 5 years. An important nuance: we calculate the sum of years, which is equal to 15. Below, all manipulations are shown in the table.

This method is very similar to the decreasing balance method, but its advantage is that the balance after debiting will always be zero. This method is considered to be very accurate.

Write-off method in proportion to the volume of production (production method)

This method takes into account the volume of products or services produced by the enterprise, correlating it with the initial cost of the object and the expected volume of products and services for the life of the object.

The formula is: X=P/B.

• B is the expected volume of products and services;
• X - the amount of deductions according to the calculation;
• P is the initial cost of the calculated object.

This method actually calculates the funds according to how often the object is used. That is why it is good where it is really beneficial for the company.

Consider an example: an edging machine is used in the manufacture of furniture. It processes a certain number of parts daily. The cost of the machine is 16,000,000 rubles, for the entire period 1,000,000 parts can be processed. Total for 1 part you need to write off 16 rubles.

All formulas are quite simple. They are determined by the articles of the tax code, which should always be at hand with an accountant.

You need to understand that depreciation allows you to compensate for the company's expenses on time. If these norms are artificially lowered, then such actions will adversely affect technical progress.

It is impossible to imagine the production process without fixed assets (PF). Ensuring the creation of a product, they wear out, that is, they are amortized, contributing part of their price to the cost of the released goods. These amounts, calculated monthly in equal installments, are combined under the term "depreciation", and the rate of deductions established by the state has been defined as the "depreciation rate".

Depreciation rate- the value calculated as a percentage of the price of the fixed asset operated by the enterprise. The cost of any product produced by a firm always includes a share of the depreciation of fixed assets. Learn how to determine the depreciation rate and make the necessary calculations from this article.

Depreciation rate of fixed assets: concept and structure

300 000 rub. / 20 years = 15,000 rubles.

The depreciation rate as a percentage will be equal to:

15 000 rub. / 300 000 rub. × 100% = 5%.

The depreciation rate is set depending on the depreciation method adopted by the company. There are four ways in accounting:

• linear, when deductions are made in equal shares over the entire life of the facility (as in the example presented);
• reducing balance method, in which deductions are calculated by the ratio of the depreciation rate to its residual (and not original) value for each reporting year. Continuing the example, calculate the amount of depreciation for the next year. If in the 1st year of operation 5% of 300,000 rubles amounted to 15,000 rubles, then in the 2nd calculation it will be as follows: 5% of 285,000 rubles. (300,000 - 15,000), i.e. 14,250 rubles. In this case, the depreciation rate has not changed, and the amount of depreciation has decreased. When using accelerated depreciation, its rate for the year can be calculated using the formula % = K / SPI, where K- increasing coefficient accepted in the company. It cannot be higher than 3;
• method of writing off the cost of the total FDI. When using this method, the calculation does not involve calculating the depreciation rate. However, understanding by it the share of the cost of the fixed asset recognized by the annual depreciation rate, the calculation formula may look like this: N = CHL / ∑CHL, where CL is the number of years remaining until the end of the STI of the OS object, and ∑CHL is the sum of the numbers of SS years. In our example, the calculation will be as follows:
  • -in the 1st year % = 20 years / (1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 + 11 + 12 + 13 + 14 + 15 + 16 + 17 + 18 + 19 + 20) = 9.5%.
  • Depreciation rate (HA) \u003d 9.5% x 300,000 rubles. = 28,500 rubles;
  • - in the 2nd year % = 19 years / 210 = 9%
  • ON \u003d 9% x 30,000 \u003d 27,000 rubles. etc.;
  • When applying this method, the depreciation rate will decrease, as will the amount of depreciation.
• a method of writing off the cost in proportion to the quantity of products sold. With this method, the annual rate is not calculated, since the amount of depreciation is calculated from the natural indicator of the volume of production for the billing period.

When calculating depreciation rates for tax purposes, only two methods will be used - linear and non-linear. Linear is the most popular and is used in 70% of operating companies. It is considered simple, concise and precise.

Average depreciation rate

The calculation of the average annual rate is an important point in planning the amount of depreciation, since this indicator affects the final financial result. The initial parameters that are mandatory for calculating the average rate of depreciation are:

• The cost of fixed assets at the beginning of the period;
• Annual and prospective payments for the commissioning of the OF;
• Information about the planned disposal of property.

The average annual depreciation rate for the reporting period is determined by the formula:

• H a \u003d ∑ A o / OF cf,
  • where H a is the depreciation rate in%;
  • ∑A o - the amount of fixed assets depreciation calculated in the reporting period, in rubles;
  • OF cf - the average annual cost of fixed assets in rubles.

Depreciation is the gradual transfer of costs incurred for the purchase or construction of fixed assets to the cost of the finished product. In other words, with its help, the money that was spent on the construction or purchase of property is compensated.

Depreciation deductions are made over a long period - throughout the entire time of the practical operation of the property: from putting it on the balance sheet of the enterprise in connection with its commissioning to deregistration. The procedure for depreciation charges is approved by Article 259 of the Tax Code of the Russian Federation.

There are four methods for calculating depreciation, one of which is linear, the rest are non-linear. Due to its simplicity, the linear method is the most widely used in practice.

Straight-line method of depreciation of fixed assets

The straight-line method of depreciation involves writing off the cost of a fixed asset in the same proportional parts throughout the entire period of its use.

What objects does it apply to?

Each organization has the right to independently choose the method of writing off depreciation.

Objects of fixed assets are divided into 10 cushioning groups depending on the period of their operation. Without fail, the straight-line method of depreciation must be applied to buildings, structures and transmission devices belonging to three groups:

• Group VII - objects with a period of operation of 20-25 years;
• XI group - objects with a period of operation of 25-30 years;
• X group - objects with a period of operation of more than 30 years.

For the rest of the objects, it is allowed to apply any method of depreciation at the choice of the organization, fixed in the order on accounting policy.

The straight-line method of depreciation can be used both for new property and for objects that were previously in use (operation).

IMPORTANT! Until recently, the chosen depreciation principle could not be changed to another throughout the entire period of deductions for this object. From January 01, 2014, the organization has the right to make the transition from the non-linear method to the linear one once every five years. For the reverse transition - from linear to non-linear - there are no time limits, it is allowed to do this at any time, after amending the provision on the accounting policy of the enterprise.

Video - methods for calculating depreciation of fixed assets:

How to calculate the depreciation of fixed assets using the straight-line method

To determine the amount of monthly depreciation deductions in a linear way, it is necessary to know the primary cost of the object, its operational life and calculate the depreciation rate.

1. The primary cost of the object

The basis for the calculation is the primary cost of the object, which is calculated by summing up all the costs of its purchase or construction. If a revaluation of the value of the property was carried out, then such an indicator as the replacement cost is used for the calculation.

2. Operating period

The operating period is established by studying the classification list of fixed assets, differentiating them into depreciation groups. If the object is not recorded in the list, then the period of its operation is assigned by the organization depending on:

• predicted time of use;
• expected physical wear;
• expected operating conditions.

3. Depreciation rate formula

The annual depreciation rate is expressed as a percentage of the primary (replacement) value of the property and is calculated using the formula:

K \u003d (1: n) * 100%,

where K is the annual depreciation rate;

n is the service life in years.

If you need to find out the monthly depreciation rate, then the result is divided by 12 (the number of months in a year).

4. Formula for calculating depreciation

With the straight-line depreciation method, the calculation formula is:

A \u003d C * K / 12,

where A is the amount of monthly depreciation;

C - the primary cost of the property;

K - depreciation rate calculated according to the formula in the 3rd paragraph.

Depreciation order

With a uniform depreciation calculation, they are guided by the general rules for the product of depreciation deductions, namely:

• it is necessary to charge depreciation from the 1st day of the month following the month of putting this property on the balance sheet of the enterprise;
• make depreciation deductions regardless of financial results;
• make depreciation deductions every month and take them into account in the corresponding tax period;
• the grounds for suspension of depreciation deductions are considered to be the conservation of the object for a period of 3 months or its long-term repair (more than a year). Deductions are renewed immediately after the return to service;
• depreciation deductions cease from the 1st day of the month following the month of write-off for depreciation, withdrawal from the balance sheet or loss of ownership of this property.

Advantages and disadvantages of the linear method

Main advantages straight line depreciation method:

• Ease of calculation. The calculation of the amount of deductions must be made only once at the beginning of the operation of the property. The amount received will be the same for the entire period of operation.
• Accurate accounting writing off the value of the property. Depreciation deductions occur for each specific object (unlike non-linear methods, where depreciation is charged on the residual value of all objects of the depreciation group).
• Equal transfer of costs at cost. With non-linear methods, depreciation is greater in the initial period than in the subsequent one (write-off occurs in descending order).

The linear method is convenient to use in cases where it is planned that the object will bring the same profit during the entire period of its use.

Main disadvantages linear method:

The method is inappropriate to apply to equipment that is subject to rapid obsolescence, since the proportional write-off of its cost does not provide the proper concentration of resources needed to replace it.

Production equipment is characterized by a decrease in productivity with an increase in the number of years of operation. As a result, it will require additional costs for maintenance and repair, due to breakdowns and failure. Meanwhile, depreciation will be written off evenly, in the same amounts as at the beginning of operation, since the linear method does not provide otherwise.

For enterprises planning to quickly update production assets, it will be more convenient to use non-linear methods.

The cumulative amount of property tax over the entire life of the property, to which the straight-line method is applied, will be higher than with non-linear methods.

Example of calculating depreciation using the straight-line method

A fixed asset worth 1,000,000 rubles was placed on the company's balance sheet in March. The accountant determined that its operational life, according to differentiation by depreciation groups, would be 10 years.

The procedure for calculating depreciation using the straight-line method for this example:

• We determine the annual depreciation rate: K \u003d 1/10 * 100% \u003d 10%.
• The monthly depreciation rate will be: 10%/12 = 0.83%.
• Determine the amount of monthly depreciation:

1,000,000 * 10% / 12 \u003d 8333 rubles.

• The amount of depreciation deductions for the year of operation is:

1,000,000 rubles / 10 years = 100,000 rubles.

Thus, using the straight-line method, depreciation must be charged from April in the amount of 8333 rubles per month.

Depreciation of used property

Often, objects that were in use fall into the disposal of the organization, for example:

• objects purchased in not new condition;
• property received as a contribution to the authorized capital;
• fixed assets transferred to the enterprise on the basis of succession after the reorganization.

The scheme and procedure for accruing depreciation on a straight-line basis for such objects will be the same as with new property. The only difference for used property, plant and equipment is the calculation of the useful life. In order to determine it, you need to subtract the number of years (months) of its actual use from the service life established by the previous owner.

findings

The straight-line method of depreciation assumes that the physical deterioration of property occurs evenly throughout the entire operational period. This mainly applies to stationary structures, which do not wear out and become obsolete as quickly as equipment.

If it is impossible to accurately determine the rate of depreciation of property, then the linear method will be the most convenient and simple. Also, this method is suitable if the company acquires property for a long period of operation and does not plan to quickly replace it.

Video - the main points when calculating depreciation, examples of accounting entries: