2.4 Accounting for fixed assets and intangible assets

Asset Accounting .

According to IAS 16 "Property, Plant and Equipment" - tangible assets , operating for a long period of time ( more than one year ) as a means of labor , both in the sphere of material production and the non-manufacturing sector .

Fixed assets are carried at historical cost, the initial cost of the generators . No more than once a year ( at the beginning of the year ) the organization has the right to revalue fixed assets at replacement cost by indexing or by direct conversion documented market prices .

In the balance sheet are stated at depreciated cost ( cost or replacement cost less accumulated depreciation for the entire period of use of the object). In the accounting policies of the subject should be fixed only one method of depreciation with respect to one particular type of fixed assets. For tax purposes, used only one method of depreciation - declining balance method . Amortization of intangible assets begin to accrue from the 1st day of the month following the month of the object to the accounting and accrue until full repayment of the cost of disposal of this object or this object. Depreciation charges cease to accrue from the 1st day of the month following the month of full repayment of the cost of that facility or its cancellation with accounting. To account for the depreciation of intangible assets is subsection 2740 "Amortization of intangible assets." Account of this subsection are intended to summarize information about the accumulated depreciation deductions by type of intangible assets. Loan related accounts subsection 2740 " Amortization " reflects the assessed amount of amortization of intangible assets in correspondence with the debit accounts: 7110 " costs of goods (works , services)" under " Expenses on sale of goods ( works, services) ," 7210 " General and administrative expenses " under" General and administrative expenses " 8040 " Depreciation and amortization " under" overhead . "

With the acquisition of assets necessary to pay due attention to documents of the supplier . Transmission can draw up a contract and the act of acceptance and transfer , often draws supplier invoice and the invoice. In addition, with included data sheet , user manual, warranty card. These documents may have information to facilitate proper accounting , the rationale for the cancellation of the operating costs , maintenance costs , depreciation and other . For example, some basic tools can be a technological resource productivity. In some cases, important characteristics such as power consumption , speed, number of products produced per unit of time , etc. For the cancellation of fuel and lubricants for operation of vehicles should take into account the rate of gasoline consumption , which is usually specified in the data sheet of the car or in special directories .

Tangible and intangible assets can not be immediately expensed . But during the operation , they gradually wear down physically or mentally. Systematic process of allocating the cost of the asset in order to gradually expensing , called depreciation . The residual value of an object is the carrying value and is determined by the formula:

Initial cost - Depreciation (amortization ) = Book value .

In accounting using the computer program accounting 1 C Enterprises , information about each object is stored in a special directory "fixed assets ." It records all items of fixed assets and other long-term assets. Each of the assets has a card that records the life of the object. As a result of computer processing of sheet form B -2 (Appendix 4) can be accessed programmatically at any time and for any length of time .