The depreciation calculation

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2018-03-18 17:55:39

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Every natural or legal person in the process of the activity meets the concept of depreciation (partial transfer  for manufactured goods the cost of fixed assets).

Calculation of depreciation can be accomplished in several methods. The size of depreciation charges are of great importance: on the one hand, they include the costs of the company  as part of the cost,  which in turn affects the financial result, on the other hand, they are considered to be one of the main sources of funds for the reproduction of fixed assets. As a result, the chosen system of depreciation affects the value of taxes and the formation of own financial resources in the enterprise.

The Methods of calculation of depreciation are governed by PBU. Under this provision, a depreciation in accounting can be one of the most profitable method from the four proposed in the regulation.

Linear method

The Essence of the method is to determine for each object the main Fund its useful life, and the partial transfer of its depreciation cost for this term. That is, to obtain Sumy annual depreciation value of the object underlying Fund divided by the duration of its use. Generating the depreciation calculation on this method, the useful life of the facility, the company defines itself, except where this period is specified in the technical documentation.

Method of reducing the cost

The depreciation Calculation is made on the basis of the value of the object that is left at the beginning of the year, and pre-calculated from the period of use of a particular object depreciation, and is installed on the enterprise factor that should not be more than 3.  Therefore, the greatest amount will be credited in the beginning of the depreciated fixed asset. It is important for the rapid aging of the funds.

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Method of writing off value of the object General Fund for sum of numbers of years of its useful life

When calculating depreciation.  this  method the annual amount is calculated from book value of subject asset's depreciation and the ratio of years that remain until the end of the useful life of the object to the total sum of numbers of years of the depreciated object.

Production method

This method has a direct reference to the volume produced by the main means of production. Thus, the annual depreciation amount can be calculated  the product of the actual volume of production per year and production rates of depreciation. To calculate production rate of depreciation is possible by dividing the book value of subject asset's depreciation for a total expected volume of products produced by this tool. Used production method for the group asset, which is determining factor  of wear can be called the frequency of their use.

Regardless of the method selected, calculation of depreciation should be the first day of the month after the month of commissioning of the object.&After elimination of the object from the list of depreciable or complete impairment of object, the calculation, starting from the first day of the month that follows the month of the execution of one of two conditions is terminated.

Depreciation for the reporting year should be paid monthly in an amount equal to 1/12 of the total assessed for the year. Display the accrued amount in the accounting be in the period to which they relate, in the debit of accounts responsible for the production costs (20, 23, 25-26, 29, 44, 91, 97) loan  accounts responsible for accounting for depreciation (02).


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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