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The OS accounting process procedure is regulated by various legal acts.
The most significant documents here include:
- PBU 6/01 “Accounting for fixed assets” dated March 30, 2001 No. 26n;
- Guidelines for accounting of fixed assets dated October 13, 2003 No. 91n.
These regulatory documents should also be relied upon when calculating the average annual cost. The explanation for this is that in addition to the purposes of accounting for fixed assets, conditions, the one-time compliance with which is mandatory for the recognition of assets as such in the accounting process, etc., they regulate the procedure for forming their value.
In turn, the value formed according to the rules set out in these documents will subsequently be used to calculate the average annual value of these assets.
The calculation of the average annual value for the purpose of calculating property tax is based on a legal framework consisting of:
- Clause 4 art. 376 2nd part of the Tax Code of the Russian Federation dated 05.08.2000 No. 117-FZ.;
- Letters from the Ministry of Finance of the Russian Federation dated July 15, 2011. N 03-05-05-01/55.
Purpose of fixed asset accounting
In accordance with paragraph 6 of the Guidelines, asset accounting pursues the following goals:
- accumulation of actual costs incurred related to their acceptance into the accounting process;
- correct documentation and reflection in a timely manner of operations on their movement;
- determination of reliable results received from their sale and other disposals;
- calculation of actual costs incurred related to their content;
- ensuring proper control over the safety of assets accepted for the accounting process;
- analysis of the effectiveness of their use;
- getting information about the OS required for disclosure in reporting.
Types of fixed asset values
In accordance with the above legal acts, fixed assets have three types of value:
- The original one.
- Restorative.
- Residual.
The initial one is formed at the moment when the OS is being registered for accounting.
The procedure for its formation is set out in paragraphs. 8-11 PBU 6/01 and depends on the method by which the organization obtained this type of asset:
- When purchasing or creating on your own, this is the amount of costs actually incurred by the organization related to the purchase or creation. Please note that paid VAT and other refundable taxes are not taken into account.
- Upon receipt as a contribution to the authorized capital of the organization– this is the valuation of an asset in monetary form, agreed upon between the founders of the organization.
- When received as a gift– this is the market value of the asset, relevant on the date of acceptance for accounting.
- When received under barter agreements– this is the value of the transferred values.
Changing the initial valuation is possible only in certain cases:
- with a radical change in the OS. If they have been completed, retrofitted, reconstructed, modernized, or partially liquidated;
- when revaluing the OS.
This list is exhaustive.
The replacement cost is formed:
- as a result of restoration of property, implying a change in its original value;
- as a result of revaluation or depreciation of property.
Residual value is the original (replacement) cost minus depreciation.
Methods for calculating average annual cost
Without taking into account the month of input-output of fixed assets (formula)
If special accuracy is not required, then the average annual cost can be determined by the formula:
S-st (avg) = (S-st (n.g) + S-st (k.g))/2,
where C-st (n.g), C-st (k.g) – the cost of fixed assets, respectively, on January 1 and December 31 of the year for which the calculation is being made.
S-st (k.g) = S-st (n.g) + S-st (enter) – S-st (select),
where C-st (input), C-st (select) – the cost of fixed assets, respectively introduced and written off during the year.
In all of the above calculations, the book (residual) value of the fixed assets should be used.
Taking into account the month of input-output of fixed assets (formula)
The most common formula used in calculating indicators of the use of fixed assets (capital productivity, capital intensity, etc.):
S-st (avg) = S-st (n.g) + M 1 /12 × S-st (enter) – M 2 /12 × S-st (select),
where M 1 and M 2 are the number of full months that have passed, respectively, from the date of entry and write-off of fixed assets until the end of the year.
Average chronological formula:
S-st (avg) = [(S-st (1n.m) + S-st (1k.m))/2 + (S-st (2n.m) + S-st (2k.m))/ 2…+(S-st (Nn.m) + S-st (Nk.m))/2] /12,
where S-st (1n.m), S-st (2n.m),...S-st (Nn.m) – the cost of fixed assets at the beginning of the 1st, 2nd, Nth month, respectively;
S-st (1k.m), S-st (2k.m),...S-st (Nk.m) – the cost of fixed assets at the end of the 1st, 2nd, Nth month, respectively.
The formula used to calculate the average annual cost for calculating corporate property tax:
S-st (avg) = (S-st (n1) + S-st (n2) +…+ S-st (nn) + S-st (k)) /13,
where S-st (n1), S-st (n2)…S-st (nn) is the residual value of fixed assets on the 1st day, respectively, of the 1st, 2nd...nth month of the tax period;
S-st(k) – residual value of fixed assets as of the last day of the tax period (as of December 31 of the year for which the tax is calculated);
13 – the number is obtained by adding one to the 12 months of the tax period.
When calculating advance payments for 3, 6 and 9 months, the denominator of the calculation formula will be obtained by summing the unit with 3, 6 and 9 months, respectively.
The calculation of the residual value of fixed assets using this formula does not include the value of assets, the tax base for which is determined as their cadastral value.
Ssr.g. = Cng + (∑ St. * months / 12) – (∑ St. * months) / 12;
where is month – the number of full months from the moment of commissioning and disposal of fixed assets, respectively;
Renewal factor
Kobn = Svv / Skg * 100%;
where Skg is the cost of fixed assets at the end of the year, rub.
Attrition rate
Kvyb = Svyb / Cng * 100%.
The performance of fixed assets is assessed using a system of natural and cost indicators. At the same time, a conclusion on these indicators is made by comparing them with the previous period and with the standard.
Cost indicators
Capital productivity– the indicator of output per one ruble of the cost of fixed assets.
Fo = VP / Ssr.g;
where Фo – capital productivity, rub. per rub.;
VP – annual volume of commercial (gross) output, rub.;
Avg.g – average annual cost of fixed assets, rub.
Capital productivity should tend to increase
Capital intensity– the inverse value of capital productivity, shows the share of the cost of fixed assets coming for each ruble of output
Fe = Sr.g. /VP;
Fo = 1/Fe; Fe = 1/Fo;
Capital intensity should tend to decrease
Capital-labor ratio characterizes how equipped a worker is with fixed assets; this coefficient is necessary for withdrawing funds for reconstruction activities and the introduction of new equipment.
Fvor = Sr.g. /Npp;
where Npp is the average number of personnel, people.
Natural indicators
Extensive load factor – This is the ratio of the actual operating time of the equipment to the amount of operating time according to the plan.
Kex = Tf / Tp
where Tf is the actual operating time of the equipment;
Тп – operating time of the equipment according to the norm.
Intensive load factor- the ratio of actual productivity to the standard productivity of the main technological equipment
Kint = Pf / Pp;
where Pf – actual productivity;
Pp – standard productivity.
Integral equipment utilization coefficient- comprehensively characterizes the operation of equipment in terms of time and productivity (power)
Kintegra = Kex * Kint;
Depreciation and amortization of fixed assets, their reproduction.
Wear– gradual loss of its technical and physical parameters (qualities).
Depreciation- this is a gradual, during the standard service life, reimbursement of the cost of fixed assets by accruing part of the cost to the cost of finished products.
Depreciation rate is the ratio of the annual amount of depreciation to the original cost of fixed assets, expressed as a percentage.
The annual amount of depreciation is calculated using the formula:
A = PPP * At /100%;
where A – annual depreciation charges, rub.;
Na is the depreciation rate, %.
| Sinking fund |
| Reproduction of fixed assets |
Examples of problem solving
Problem 1
Determine the average annual value of fixed assets, the value of assets at the end of the year, the entry and exit ratio using the following data:
The cost of fixed assets at the beginning of the year was 9,100 thousand rubles;
Solution
1. Determine the average annual cost using the formula:
Ssr.g. = Sng + (∑Svv * months / 12) – (∑Ssv * months / 12);
Avg.g = 9100 thousand rubles. + (3200 thousand rubles * 10) / 12 – (4500 thousand rubles * 3 + 700 thousand rubles * 1) / 12 = 10584 thousand rubles
2. Cost of fixed assets at the end of the period:
Skg = Sng + Svv – Svyb;
Skg = 9100 + 3200 – (4500 + 700) = 7100 thousand rubles.
Kvv = Svv / Skg *100%;
Kvyb = Svyb / Cng * 100%;
Kvv = 3200 / 7100 *100% = 45.1%.
Kvyb = (4500 + 700) / 9100 *100% = 57.1%.
Problem 2
Determine the structure of fixed assets, capital productivity, if production output for the year amounted to 90,200 thousand rubles. The cost of individual objects by group is presented below:
1) buildings – 35,000 thousand rubles;
2) structures – 20,000 thousand rubles;
3) measuring instruments – 16.7 thousand rubles;
4) vehicles – 423.8 thousand rubles;
5) working machines – 536.2 thousand rubles;
6) power machines – 19,456 thousand rubles.
Solution
1. The structure of fixed assets is the share of different groups of funds in their total value. Accordingly, it is necessary to determine the total value of all objects on the balance sheet of the enterprise:
Sbal = 35000 + 20000 + 16.7 + 423.8 + 536.2 + 19456 = 75432.7 thousand rubles.
2. Structure of fixed assets:
Specific weight of buildings = 35000 / 75432.7 *100% = 46.4%;
Specific weight of structures = 20000 / 75432.7 * 100% = 26.5%;
Specific weight of measuring instruments = 16.7 / 75432.7 * 100% = 0.02%;
Specific weight of vehicles = 423.8 / 75432.7 *100% = 0.6%;
Specific weight of working machines = 536.2 / 75432.7 * 100% = 0.7%;
Specific weight of power machines = 19456 / 75432.7 * 100% = 25.8%.
3. Let’s determine capital productivity:
Fo =90200 / 75432.7 * 100% = 1.2 rub.
Working capital
Average annual cost of fixed assets (FPE)- an indicator that any accountant needs to calculate property taxes. We will explain below how to calculate the indicator and where to get the formula from.
Formula for calculating the average annual cost of fixed assets
Since the procedure for paying taxes is fixed in the Tax Code, the formula for calculating any tax can be found there. Property tax is no exception.
The tax base for calculating property tax is the average annual cost of fixed assets.
The detailed calculation procedure is described in clause 4 of Art. 376 Tax Code of the Russian Federation.
GHS = (A1 + A2 + A3 + A4 + A5 + A6 + A7 + A8 + A9 + A10 + A11 + A12 + B1) / 13, Where
SGS - average annual cost;
A2-A12 - the residual value of the property on the 1st day of each month, where the figure is the serial number of the month (for example, A3 - the residual value as of March 1);
The denominator of the formula contains the number 13 - this is the number of months in the tax period increased by one (12 + 1). The numerator ultimately also adds up 13 indicators.
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Calculation of the average cost of fixed assets with an example
Average cost differs from average annual cost in that it is used only when calculating advance property tax payments.
An example of a formula for calculating the average cost for six months:
CC = (A1 + A2 + A3 + A4 + A5 + A6 + B1) / 7, Where
СС - average cost;
A2-A6 - the residual value of the property on the 1st day of each month, where the figure is the serial number of the month (for example, A3 - the residual value as of March 1);
Unlike the formula for calculating the average annual cost, in the above formula all indicators are taken as of the 1st day of the month; data at the end of the month is not used.
Note! The calculations do not use the residual value of objects that are not subject to property tax or are recorded at cadastral value.
Example. Auto-jazz LLC repairs premium cars. Auto-jazz has repair equipment on its balance sheet.
Residual value of fixed assets in rubles:
as of 01/01/2018 - 589,000;
as of 02/01/2018 - 492,000;
as of 03/01/2018 - 689,000;
as of 04/01/2018 - 635,000.
In February, new equipment was purchased, as a result of which the residual value at the beginning of March became higher.
Let's calculate the average cost for January - March:
SS = (589,000 + 492,000 + 689,000 + 635,000) / 4 = 601,250.
Calculation of the average annual cost of fixed assets with an example
As we wrote above, the average annual value is needed to calculate the annual property tax.
Let's look at an example of calculating the GHS. Auto-jazz LLC repairs premium cars. Auto-jazz has repair equipment on its balance sheet. No equipment was purchased or written off during the year. Monthly depreciation amounted to 37,000 rubles.
Residual value in rubles:
as of 01/01/2018 - 989,000;
as of 02/01/2018 - 952,000;
as of 03/01/2018 - 915,000;
as of 04/01/2018 - 878,000.
as of 05/01/2018 - 841,000;
as of 06/01/2018 - 804,000;
as of 07/01/2018 - 767,000;
as of 08/01/2018 - 730,000;
as of 09/01/2018 - 693,000;
as of 10/01/2018 - 656,000;
as of November 1, 2018 – 619,000;
as of 12/01/2018 - 582,000;
as of 01/01/2019 - 545,000.
GHS = (989,000 + 952,000 + 915,000 + 878,000 + 841,000 + 804,000 + 767,000 + 730,000 + 693,000 + 656,000 + 619,000 + 582,000 + 545,000) / 1 3 = 767,000 rubles.
How to determine the average annual cost of fixed assets on the balance sheet in thousand rubles.
The balance sheet is an excellent source for determining and analyzing the return on assets.
The average annual value of property is often used for analysis. To do this, you need to take the figures recorded in Section I of the balance sheet under the line “Fixed assets”. For comparison, two years are taken, for example the reporting year and the previous one.
SGS = (Gotch + Gpred) / 2, where
Gotch - the cost of the OS at the end of the current year;
Gpred - the cost of the operating system at the end of the previous year.
Let's consider an example of calculating the GHS from the balance sheet. Auto-jazz LLC repairs premium cars. Auto-jazz has repair equipment on its balance sheet. The cost of the operating system on the balance sheet as of December 31, 2017 is 983,000 rubles, and as of December 31, 2018 - 852,000 rubles.
To get the GHS, we use the above formula:
GHS = (983,000 + 852,000) / 2 = 917,500 rubles.
The main distinguishing feature of OS is the longevity of their use. During operation, the cost of the asset is gradually compensated through depreciation charges. The process of determining depreciation charges involves calculating the average annual cost of fixed assets.
The average annual cost of fixed assets is an indicator that fully reflects the total cost of fixed assets of an organization. In the activities of any company, asset accounting is carried out to achieve the following goals:
- Accumulation of expenses that the company incurred in connection with the acceptance of objects for accounting;
- Correct execution of documentation, as well as reflection of operations on their movement at a certain time;
- Calculation of reliable values obtained when implementing OS objects;
- Determination of costs for maintaining facilities;
- Monitoring the integrity and safety of objects involved in the accounting process;
- Carrying out an analysis of the effectiveness of the use of objects;
- Obtaining OS data required for disclosure in reports.
Cost classification
The cost of OS objects can be of three different types:
- Initial;
- Current;
- Residual.
Calculation methods
There are several methods for calculating the average annual cost of fixed assets. Which method to use will depend on the purposes of the calculation and the required reliability of the result.
Let's look at each of the methods in more detail.
Basic formula (without taking into account the month of input and output of the OS)
If special reliability of the result is not required, the formula for the average annual cost of fixed assets will be as follows:
Wed. With. = (average s.(n.g.) + average s.(k.g.)) / 2.
- N.g. – beginning of the year (first of January);
- K.g. – end of the year (December thirty-first).
Calculation of the average annual full discount price
If there is a goal to obtain a more reliable result, you need to take into account the month when the OS was introduced or written off. The calculation will be carried out according to the formula:
Wed. With. = Wed. s(n.g.) = P1 / 12 * avg. s. (input) – P2 / 12 * avg. s.(select).
- P1 and P2 – the number of months that have passed since the time when the operating systems were introduced and taken out of use.
Formula for calculating property tax
If an organization calculates property tax, it can calculate the average annual cost of fixed assets using the following formula:
Wed. With. = (average s.(n1) + average s.(n2) + … + average s.(nn) + average s.(k)) / 13.
- Wed s.(n1), cf. s.(n2), cf. With. .(nn) – residual price of objects on the first days of the month of the taxation period;
- Wed s.(j) – the residual value of the objects as of the last days of the month of the taxation period;
- 13 – twelve months + one.
Balance formula
Based on the balance sheet, the average annual cost can be calculated using the formula:
Fo = Fp + (Fvv * KR) / 12 – (Fl * (12 – R)) / 12.
- Фп – cost of fixed assets on the balance sheet;
- Fvv – objects put into use;
- KR – number of months;
- Fl – liquidation value of objects;
- P – the total number of months of operation of the facilities in the current year.
Accuracy of methods
The most inaccurate calculation method is calculation using a formula that does not require taking into account the month of I/O of OS objects. To obtain a reliable result, you should use one of the other three formulas.
Fixed production assets (FPF) are means of production for long-term use: buildings, structures, machinery and equipment, etc.
To calculate depreciation charges and indicators of the efficiency of use of fixed production assets, their average annual cost is calculated.
We calculate the average annual cost for each type using formulas depending on the initial data.
For transfer devices, a disposal of 17,900 thousand rubles is planned. in the 1st quarter, the average annual cost of OPF is planned according to the formula
where F is the average annual cost of open pension fund, thousand rubles;
F 1.01 -- cost of OPF at the beginning of the year, thousand rubles;
FN.S.G. -- cost of open pension fund at the beginning of the next year, thousand rubles;
F 1.02, ..., F 1.12 - cost of open pension fund at the beginning of each month, thousand rubles.
For machinery and equipment, it is planned to commission 84,300 thousand rubles. from June 1, the average annual cost of OPF can be calculated using the formula
where F VV is the cost of the OPF put into operation, thousand rubles;
F CHOICE - cost of decommissioned OPF, thousand rubles;
t 1 -- the number of full months remaining until the end of the year from the date of putting the OPF into operation;
t 2 -- the number of full months remaining until the end of the year from the date of disposal
OPF out of operation.
For vehicles, it is planned to retire 2800 thousand rubles. in August, the average annual cost of OPF can be calculated using formula 5
enterprise revenue costs profitability
Since the input time is 1620 thousand rubles. is not planned for computer technology, then the average annual cost of the general fund can be calculated using the formula
F NG + SF BB - SF SELECT,
where F NG is the cost of OPF at the beginning of the year, thousand rubles;
F VV - cost of OPFs put into operation, thousand rubles;
F CHOICE - cost of decommissioned OPF, thousand rubles.
5300 + = 6110 thousand rubles.
We calculate the structure for each type of OPF using the example of machinery and equipment:
where is the average annual cost of OPF by element, thousand rubles;
Total average annual cost of OPF, thousand rubles.
We summarize the calculation results in Table 2.
Table 2 -- Average annual cost and structure of open pension fund
According to this RUES, the active part includes machinery and equipment, transmission devices, computer equipment, tools and vehicles, and constitutes 63.8% of the total cost of the OPF. The passive part of the general public fund includes buildings and constitutes 36.2% of the total cost of the general public fund. In general, according to this RUES, the structure of the OPF is rational