The enterprise is a special and rather complex system. It combines various resources: labor, material, money. Costs act as one of the most important factors that affect the decision-making related to management activities in the enterprise.Depreciation of fixed assets and depreciation

Importance of cost analysis

Achieving the goals in the commercial sphere is always directly related to costs. The entrepreneur can not be sure that this or that decision is correct, if the enterprise has not carried out an analysis of costs and production costs. This work is aimed at identifying the likely opportunities that can be used to improve the effectiveness of all the resources available in the organization. The analysis of expenses allows to give higher estimation of profitability and indicators of profit.

Depreciation and amortization of fixed assets

In the transition to market relations, the problem of increasing the effectiveness of the use of assets and the capacity of the organization is central. An entrepreneur must have a clear idea of ​​the significance of each component of fixed assets, their moral and physical wear and tear, factors that affect their implementation. Knowing this, you can identify techniques and directions that contribute to increasing the effectiveness of the application of assets, the company's capacity.

Depreciation of fixed assets of the enterprise

The use of certain techniques contributes to a significant reduction in the costs of the organization. One of the effective tools for achieving this goal is depreciation of fixed assets. The calculation starts from the 1st day of the month following the one in the period when the object was accepted for taxation (accounting). They terminate it from the first day of the month, which follows after the time when a complete write-off of the object was made or he dropped out of the category for any reason. The process of depreciation of fixed assets is a systematic transfer of the value of labor resources to the product produced with the help of them.

General Provisions

Depreciation and amortization of fixed assets are of particular importance in the matter of ensuring the effective operation of a commercial company. There are a number of general provisions that characterize the asset management approach under consideration. First of all, it should be said that depreciation of fixed assets is a certain amount. Its size should be equal to the restoration (initial) value of assets. Amortization reflects the moral and physical wear and tear of fixed assets. During the useful life period, the transfer of value does not cease. Exceptions are cases of the transfer of the object in accordance with the decision of the company's director for conservation for more than three months or for carrying out its restoration, the term of which is more than a year. Depreciation of fixed assets is charged regardless of the results of the company's activities in the reporting period. The amount in the accounting of the corresponding time interval is reflected. The methods of depreciation of fixed assets do not apply to assets of assets whose consumer properties remain unchanged over time. In particular, they include land and areas of nature use. Depreciation charges for fixed assets that are not involved in activities are reflected at the expense of the sources of the organization formed from the remaining profits at its disposal.

Used techniques

There are different methods for calculating depreciation of fixed assets. They are regulated by the Regulations on Accounting. Item 18 contains a list in which the following types of depreciation of fixed assets are presented:

  • Linear variant.
  • Writing off the cost in relation to the volume of services, works, goods.
  • Use of the reduced balance.
  • Write-off of the value of the total amount of numbers by years of useful life.

For tax accounting in art. 259, 25 of the Tax Code provides that organizations apply non-linear and linear methods of depreciation of fixed assets. The first reception is not allowed for structures, buildings, transfer devices, the useful life of which is more than 20 years. When choosing one or another option by which the depreciation of the enterprise's fixed assets will be carried out, the taxpayer can not change it during the entire period of transfer of funds.

Reducing balance

In this case, the annual amount in which depreciation of fixed assets is reflected, is formed according to a certain rule. It is formed in accordance with the determined difference between the carrying value and the funds transferred before the reporting period for the transfer began. At the same time, depreciation rates of fixed assets are taken into account. They are composed of two parameters. When they are formed, a coefficient is used, which reflects acceleration and useful life.

Proportional Writing off

Depreciation of fixed assets in this case is based on the carrying value of the object and the ratio of the actual indicators of the volume of services, works, goods that were released in the current time interval, to the resource of the object. The latter should be understood as natural indicators of the quantity of products that can be produced during the entire operational life of the facility in accordance with the technical documentation.

Write-off for the sum of numbers

Linear Reception

In this case, the cost of depreciation of fixed assets is transferred evenly throughout the entire useful (useful) period of use of the asset. The sum of the transferred cost for a month is determined by two elements. The first is the depreciation cost of the facility, the second is the rate established in accordance with the useful life. In the tax accounting there is no concept of the annual indicator of the transferred amount. In this regard, the monthly depreciation of fixed assets in this case is carried out taking into account the useful life, which is expressed in months.

Comparative analysis

The linear scheme assumes an even distribution of the amounts by years. If depreciation of fixed assets is to be used for the reduced balance, the greater part will be transferred during the first years of operation of the asset. In subsequent years, revenues will gradually decline. It becomes obvious that if depreciation of fixed assets is carried out by means of proportional write-off, then with an increase in the annual output of products (works, services), the amounts of the transferred value will be increased. When carrying out a comparative analysis of various methods of implementing depreciation charges, it becomes clear that the most economically justified, but not in all cases, the most profitable and possible, is proportional movement of funds. If it is more expedient for the organization to perform the fastest possible write-off of the book value of the object, it is better to use the option of listing in accordance with the sum of the years of its useful use. As for large capital-intensive organizations, the most likely method for them is the method of decreasing balance.

Non-linear charge off

The advantage of this option is that at the initial stage of the transfer of funds, you can use the acceleration mechanism. Non-linear cancellation presupposes the transfer of value in two stages. At the first stage, depreciation is performed in the manner described above, whereby an indicator of 80% of the value of the object is reached. From the month following the period during which the amount will go up to 20% of the original price, the funds will be redirected in a certain order. In particular:

  • The residual value is fixed as the base, which will be used to determine the further amounts.
  • The amount of monthly depreciation in relation to the object is established by dividing the base value by the number of months that remained before the expiration of its useful life.

Increasing factor

With its use, accelerated depreciation of fixed assets is carried out. This option allows you to quickly write-off the property at the cost of production. Due to this, the taxable base of payments on the profit of the organization will be reduced. In the economic practice of various states, this method of depreciation is considered as the fastest option for updating the basic assets and a mechanism that helps to reduce inflationary losses. As its main advantage is the rapid recovery of a significant amount of expenditure due to a temporary factor. However, the policy, in which accelerated depreciation is used, provokes an overestimate of the cost price. This, in turn, increases the price at which the production of goods (services) is realized. As a result, in Russia the practice of applying accelerated depreciation for today is very small. Until now, the most widespread sphere of use of this variant of value transfer was considered to be the area of ​​commercial activity of small businesses.


Lowering the labor intensity of goods (works) and increasing the productive level can be achieved today in a variety of ways. The most important and promising of them include the automation and mechanization of industrial enterprises. Of particular importance is the development and further application of highly efficient, progressive technologies, as well as the modernization and replacement of obsolete equipment. The decline in the value of production assets, mainly of their active part, is marked by a special intensity under the influence of the scientific and technological revolution. In the conditions of modern life and in the course of the formation of the economic sphere, the scientific and technical revolution exerts a tremendous influence on the reduction of the period of obsolescence. Today, on average, this figure is within three to seven years. Reduce the cost of depreciation of fixed assets can be through the most rational use of them. To achieve this goal, first of all, it is necessary to analyze the results of expenditures. This event will allow you to compare the effectiveness of certain shock absorption methods and come to a fairly definite conclusion. A faster transfer of value is characterized by overstated totals. Underestimated norms on depreciation significantly slow down the renewal of labor, slow down technical progress. A faster translation, on the contrary, helps to replace equipment. It follows that it is most expedient to apply accelerated depreciation of funds when an organization needs to carry out structural reorganization of fixed assets, as well as their modernization. It can also be said that the aim of such a policy is to stimulate investment. But it should be remembered that accelerated depreciation is equivalent to higher costs in the short term and lower profitability of the company. In this connection, in practice, linear cancellation is often applied.