Fixed Assets Accounting
As a result of studying this chapter, the student must:
• The concept and basic principles of accounting for the movement of fixed assets in the enterprise;
• types of assessments of fixed assets and methods of their calculation;
• the main differences in the principles of the formation of initial and residual value for accounting and tax accounting purposes;
• methods of calculating depreciation of fixed assets;
• the main differences in the methods for calculating depreciation for accounting and tax accounting purposes;
be able to
• carry out accounting for the main business operations associated with the movement of fixed assets in the enterprise;
• solve specific business situations using accounting methods;
• calculate depreciation using various methods of calculating depreciation both for accounting purposes and for tax purposes;
• the skills and skills of documenting and information support of an economic entity on the condition and movement of fixed assets and amounts of accrued depreciation;
• norms and rules of domestic standards in the field of accounting for fixed assets.
The concept of fixed assets and their accounting at the enterprise
To conduct production and economic activities, enterprises need basic means (labor); they repeatedly participate in the production process, in parts transfer their value to the created product, without changing its real-natural form. The transfer of value to the value of newly created products is due to the fact that, without changing the material-material form, fixed assets are subject to wear and tear under the influence of means of labor and the environment.
For the purposes of taxation, fixed assets means a part of the property used as a means of labor for the production and sale of goods (works, services) or for management of an organization with an initial cost of more than 40,000 rubles. (Article 257 of the Tax Code).
In accordance with PBU 6/01 Fixed assets accounting as property of fixed assets, property can be taken for accounting that meets the following conditions at a time:
- the object is intended for use in the production of products, in the performance of work or provision of services, for the management needs of the organization or for providing the organization for a fee in temporary possession and use or for temporary use;
- the object is intended to be used for a long time, i.e. term exceeding 12 months or a normal operating cycle if it exceeds 12 months;
- the organization does not assume the subsequent resale of this property;
- the object is able to bring the organization economic benefits (income) in the future.
On account 01 Fixed assets on separate subaccounts, the fixed assets that are in operation, in stock, for conservation or transferred to ordinary (industrial) leases are recorded. On account 01 Fixed assets organized on-object analytical accounting of fixed assets in the places where they are located (shops, factories, plots, etc.).
Objects of fixed assets are grouped in accounting in accordance with the requirements of statistical reporting for production and non-production (the latest in the sectors: health, housing and communal, etc.) and, further, in functional groups (buildings, structures, equipment, etc.).
Land plots, forest and water areas, mineral deposits transferred for use to the enterprise, account 01 "Fixed assets are not taken into account. But the same objects that are the property of the enterprise (purchased or transferred to it by state bodies) are accounted for in separate sub-accounts opened on account 01 "Fixed Assets".
The main tasks of accounting for fixed assets are:
1) control over their presence and safety from the moment of acquisition until the moment of retirement;
2) correct and timely calculation of wear;
3) obtaining information for the correct calculation of property tax transferred to the budget;
4) control over the correct and effective use of funds for the reconstruction, modernization and repair of fixed assets;
5) control over the effective use of fixed assets in terms of time and power; obtaining data for reporting on the availability and movement of property, plant and equipment.
The basis for the correct organization of accounting for fixed assets is the approved type classification of fixed assets and a unified principle for their valuation in accounting.
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