Depreciation of fixed production assets. Depreciation of fixed assets Physical depreciation of fixed production assets is determined by

The main means of production are a necessary component of the activity of any enterprise. The production indicators of the organization depend on the state of fixed assets and the level of their productivity. To analyze the condition of fixed assets, the depreciation coefficient is used. Today we will talk in an article about what the depreciation rate of fixed assets means, how to calculate it, what standards are set for it, and also tell you what analytical data can be obtained based on the depreciation rate of fixed assets.

General information on fixed assets

In the process of doing business, all business entities use fixed assets (OS). The number of fixed assets and their cost depends on the specifics of the enterprise, production volume, field of activity, etc. Read also the article: → "". Fixed assets include not only equipment that is directly involved in the production process, but also:

• buildings, premises that house production workshops, offices, outlets etc., that is, real estate used for the production and sale of goods, works, services;
• transport and other movable property used for production purposes;
• furniture, computer equipment and other property necessary to ensure the production process.

Fixed assets recorded on the balance sheet of the enterprise are subject to depreciation. As a result of monthly deductions, part of the cost of the equipment is written off as depreciation, so the balance sheet reflects the residual (real) value of the property based on the period of its use.

What is the wear factor and what does it show

To determine the degree of wear production assets, use a coefficient, which is defined as the ratio of the amount of accrued depreciation to the original cost of the property. Read also the article: → "". The wear coefficient can be determined in the context:

• physical depreciation of fixed assets;
• the morale of production equipment;
• conformity of the value of the property with the market price.

The depreciation coefficient shows the degree of depreciation of fixed assets, the value of the indicator shows how depreciated the fixed assets of one or another group and for the enterprise as a whole. In other words, the depreciation coefficient gives an idea of ​​the state of fixed assets and determines the amount of worn-out equipment in the total number of fixed assets.

Based on the depreciation coefficient, it is possible to analyze the state of fixed assets, make a decision regarding the need to replace production equipment or increase its number.

How to calculate OS wear factor

To calculate the depreciation rate of fixed assets, you will need two indicators: the initial cost of the property and the amount of accrued depreciation. The formula for calculating the coefficient looks like this:

CoeffIsn = Depreciation / Primary St * 100%,

• where Depreciation is the amount of depreciation accrued for the entire period of use of the equipment;
• PrvSt - the initial cost of the property according to accounting data.

Note that when calculating the coefficient, the initial cost of the property is used, taking into account the improvements and modernization, if any.

Example #1. On the balance sheet of JSC "Stal Prokat" there are 13 machines, the initial cost of which as of 01.02.17 is 10.461.360 rubles. (for 804.720 rubles each). In March 2017, 2 machines out of 13 were modernized, as a result of which the cost of 2 units increased by 22.302 rubles. and amounted to 827.022 rubles. each.

The amount of depreciation accrued on the production equipment of Stal Prokata as of April 1, 2017 amounted to 4,003,540 rubles. The accountant of Rolled Steel made a calculation of the equipment wear coefficient as of 04/01/17:

• The initial cost of the property as of 01.04.17, taking into account the modernization carried out:

804.720 rub. * 11 units + 827.022 rub. * 2 units = 10.505.964 rubles.

• Wear factor as of 04/01/17:

4.003.540 rub. / 10.505.964 rub. * 100% = 38%.

Standard indicator of wear coefficient

Legislative acts do not provide for a normative value for the wear coefficient. The indicator of the norm, each enterprise determines the individual, its value is fixed in the provisions of the accounting policy. Practice shows that most organizations consider the value of 50% to be the limiting rate of depreciation of fixed assets. What does it mean?

Suppose an accountant of an enterprise calculated the depreciation coefficient of the equipment of a production workshop, the result of the calculation is a value greater than or equal to 50%. In this case, the result indicates a high degree of depreciation of fixed assets of this group and the need for their prompt replacement. If, according to the results of the calculation, an indicator below the level of 50% is obtained, then this indicates that, in general, the degree of deterioration of the equipment corresponds to the established norm.

Shelf life as an additional indicator of OS analysis

To get a complete picture of the state and structure of the fixed assets of the enterprise, along with the depreciation coefficient, the property suitability index is calculated. To do this, use the following formula:

CoeffG \u003d Rest / First St * 100%,

• where OstSt - the residual value of the property minus the accrued depreciation;
• PrvSt - the initial cost of fixed assets, taking into account the modernization and retrofitting.

If the wear factor shows how depreciated the equipment is, then the serviceability indicator shows the share of the residual value of fixed assets in relation to the amount of equipment according to the balance (initial) accounting. Based on these coefficients, one can generally judge the technical and moral condition of fixed assets. Similar to the wear factor, normative indicator suitability is stated in the accounting policy of the organization, its value should not be lower than 50%.

Example #2. JSC "Gallery" is engaged in the production of glass souvenirs. The table below provides information on the cost of fixed assets in the accounting of "Gallery" as of 01.02.17:

Indicators	Initial cost	Amount of accrued depreciation	residual value
	1.020.540.00 RUB	401.220.00 RUB	619.320.00 RUB
Equipment	410.330.00 RUB	$100.703.00	309.627.00 RUB
Computer technology	308.100.00 RUB	201.600.00 RUB	106.500.00 RUB
Furniture	202.680.00 RUB	103.540.00 RUB	$99.140.00
TOTAL:	1.941.650 ₽	807.063 ₽	1.134.587 ₽

The accountant of the "Gallery" made a calculation of the coefficients of wear and tear. The results of the calculation were presented in the form of a statement:

Indicators	Wear coefficient, %		Shelf life, %
	Calculation	Result	Calculation	Result
Premises of production workshops	RUB 401,220.00 / RUB 1,020,540.00 * 100%	39%	RUB 619.320.00 / RUB 1,020,540.00 * 100%	61%
Equipment	RUB 100.703.00 / 410.330 rub. * 100%	25%	RUB 309.627.00 / 410.330 rub. * 100%	75%
Computer technology	201.600 rub. / 308.100 rub. * 100%	65%	RUB 106,500.00 / 308.100 rub. * 100%	35%
Furniture	103.540 rub. / 202.680 rub. * 100%	51%	99.140 rub. / 202.680 rub. * 100%	49%
TOTAL	807.063 rub. / 1.941.650 rub.	42%	1.134.587 rub. / 1.941.650 rub.	58%

The following norms are approved in the accounting policy of the "Gallery": for the wear rate - 50% and below, for the shelf life - 50% and above. Based on the calculation performed, the following conclusions can be drawn:

• the degree of deterioration of industrial premises corresponds to the norm;
• the technical condition of the equipment can be assessed as good (degree of wear - 25%);
• computer equipment needs to be replaced as soon as possible (degree of wear - 65%);
• the state of deterioration of furniture slightly exceeds the norm and amounts to 51%, a detailed analysis of fixed assets by subgroups is required.

The general state of depreciation of the fixed assets of the "Gallery" can be assessed as satisfactory (42%).

Rubric "Question - answer"

Question number 1. JSC Favorit is engaged in retail food, for which he uses outdoor refrigerators and trade stalls. In the trade sector, the standard value for street wear commercial equipment taken at the level of 45%. Can "Favorite" fix the value of this indicator at the level of 50% in the accounting policy?

"Favorite" has the right to accept a wear rate of 50% or less as the norm. However, taking into account the specifics of the industry, the indicator will not reflect the real picture of the state of the fixed assets of this group. It is expedient for Favorit to take into account an indicator of 45% or less as a wear rate for street trading equipment.

Question number 2. According to the results of the calculation, the wear rate of computer equipment at Globus LLC is 68%. The wear rate at Globus is set at 50% and below. Is Globus obliged in this case to urgently replace the computer equipment used at the enterprise?

The legislation does not contain direct requirements for the replacement of fixed assets in the event that the depreciation coefficient does not meet the standard indicators. However, an analysis of the wear indicator at Globus suggests that the equipment is outdated and needs to be replaced as soon as possible. In the event that Globus is unable to replace the entire computer equipment to a newer one, it is advisable to conduct an additional analysis of the equipment in the context of subgroups ( Computer Engineering, multifunction devices, etc.) and identify which equipment requires priority replacement and which does not.

The main production assets of the enterprise- this is that part of the assets that is designed to be used by the enterprise for a long period of time (more than one year) and gradually (in parts) loses its value.

During operation, fixed assets are subject to wear and tear. Distinguish between physical and moral depreciation.

Physical deterioration means the loss of the use value of fixed assets. This includes mechanical wear, fatigue wear of metal and other structural materials, deformation of individual structures as a result of sedimentary phenomena, etc. The degree of physical wear depends on a number of factors, primarily the intensity of use of fixed assets, the time of actual use, the qualifications of maintenance personnel, design features and operating conditions of the equipment.

There are two methods for determining the degree of physical wear:

- according to the technical condition based on the expert assessment of the object;

- by terms of service or by volume of work. Physical depreciation occurs unevenly even for the same elements of fixed assets.

Distinguish between full and partial depreciation of funds.

At full wear and tear, existing fixed assets are replaced by new ones, for example capital construction or current replacement.

Partial wear and tear is compensated by repair.

Obsolescence expressed in the relative depreciation of fixed assets in connection with the emergence of new models of equipment before the end of the service life of fixed assets in operation. Distinguish obsolescence of the first and second kind.

Obsolescence of the first kind is caused by an increase in labor productivity in industries that produce fixed assets, as a result of which similar types of machinery, equipment, etc. become cheaper than previously produced and more competitive as a result of a lower price.

Obsolescence of the second kind is the result of the creation of better and more economically efficient machines, equipment and other types of fixed assets.

Accounting for obsolescence is of great importance in the context of the rapid introduction of the achievements of scientific and technical progress, as a result of which new (and sometimes fundamentally new) types of machines and equipment appear, having more high performance, Better conditions operation. Under the normal (crisis-free) functioning of the economy, the replacement of obsolete models of machines, equipment, transmission devices and other fixed assets is necessary for the production of competitive products with lower production costs than before the replacement of obsolete fixed assets.

The main source of coverage of costs associated with the renewal of fixed assets are own funds enterprises. They are accumulated over the entire life of fixed assets in the form of depreciation charges.

Any firm or organization in the course of its activities not only has a useful result in the form of profit, but also bears a certain share of the costs, i.e., the costs necessary to carry out activities in accordance with specialization. The largest part of all expenses of a firm or enterprise is the cost of factors of production (labor, capital, land, entrepreneurship, information, etc.), raw materials and materials (main and auxiliary), as well as the acquisition and use of fixed production assets.

Fixed production assets of the enterprise (OPF) represented by material capital, which is embodied in buildings, various structures (bridges, tunnels), machinery and equipment and other productive and useful means of labor. Fixed assets have long service lives, as a rule, they are calculated for several years, and if these are buildings and construction structures, then for decades. This type of resource is not consumed in one production cycle, but serves for a long time and, as a result, is subject to wear (breakage, obsolescence, etc.).

revolving funds is a type of capital that is enclosed in raw materials (tangible capital), cash ( financial capital), labor force (labor capital). In other words, these are resources that are the subject of labor, they contribute to the implementation of the production process, create favorable conditions for the production of goods and services by putting them into circulation. For example, materials and raw materials are the primary source finished products, lubricating oils- a necessary product for the continuous operation of the equipment. In general, revolving funds are used and fully spent in one production cycle, respectively, they transfer their value to the product produced entirely and immediately.

Wear - it is the process of loss of initial utility and value by the main production assets. Depending on the degree of impact and the reason for the unsuitability of fixed assets, two types of depreciation of the fixed assets are distinguished.

1. Physical deterioration can be represented as a loss of initial useful properties by those basic production assets that are intensively used in manufacturing process depending on the rationale for such use. In other words, during long-term or irrational use, fixed assets tend to wear out, that is, they can no longer be used in the production process and must be replaced.

Physical depreciation can also be represented as a process of deterioration in the technical and economic characteristics of fixed assets, which occurs under the influence of the labor process, natural forces (for example, metal corrosion) or as a result of their non-use.

Physical deterioration of the first degree is directly related to the rate and volume of production and is calculated as variable costs. The regular use of OPF in the production process makes them of little use over time. This type of wear is an inevitable phenomenon, sooner or later the company is forced to purchase new equipment due to the unsuitability of the former.

Physical deterioration of the second degree determines the degree of destruction of those production assets that for some reason were not put into production (i.e., due to idle equipment) or were used extremely irrationally. It turns out that this type of wear characterizes the essence of the production process, shows the degree of its efficiency, rationality and is in no way connected with the duration of the terms of use. These are the so-called fixed costs of the firm, which have a negative return.

• 2. Obsolescence - is defined as a decrease in the cost of the BPF that is not related to the end of its service life. This situation may arise for the following reasons:
• 1) due to the emergence of modern productive and economical machine tools and machines, for example, in the process of mastering innovative products. With the advent of new technologies, the old means of labor lose their usefulness and go out of circulation, they simply cannot compete with them. If we talk about the results, then, on the one hand, this leads to an increase in the efficiency of production as a whole, and on the other hand, it causes an increase in costs, which is associated with the write-off of the old equipment before the end of its service life;
• 2) price reduction in the market of factors of production. For example, if there is a drop in consumer demand in the real estate market, this causes a decrease in the relative price of housing. In this case construction organizations and it turns out to be extremely unprofitable for developers to carry out construction and invest huge capital in this process. At the same time, equipment, in this case cranes, lose their beneficial features. Thus, obsolescence, as well as physical depreciation of the second degree, should be attributed to fixed costs, since it also does not depend on the volume of output.

Its maximum value cannot exceed 100% of the cost. Achieving this value is not a basis for writing off if the funds are still serviceable. Depreciation of fixed assets is divided into 2 types:

• disposable - can be compensated by cost-effective actions;
• unrecoverable - restoration is impossible or not economically feasible.

By nature, physical and moral depreciation of fixed assets are distinguished. Before you start the calculations, you should correctly classify.

Physical deterioration

Deterioration of production and technical properties due to damage during operation and exposure to climatic factors. Its result is a drop in profitability caused by a decrease in productivity, as well as an increase in maintenance costs.

The rate of wear is affected by:

• quality of objects and care for them;
• features of operation;
• protection of objects from weather conditions;
• staff skills.

Determination of the wear factor is possible by two evaluation methods:

• the ratio of actual and standard parameters;
• the results of the inspection of the technical condition.

For elements characterized by productivity, this value is calculated by comparing the actual work performed and the duration of operation with the normative ones. The coefficient is equal to the ratio of the product of the number of years worked and the average annual volume of output to the product of the standard service life and output:

K \u003d Tfatk * Qfact / Tnorm * Qnorm

The assumption of a uniform decay rate is applied to the rest of the fixed assets. The coefficient is considered equal to the ratio of the number of actually worked years to the standard service life. The formula for calculating this indicator takes the form:

According to the frequency of the need to update the object, the following groups are distinguished:

• high strength, rarely requiring major repairs of individual parts;
• requiring repair due to periodic failure of individual parts;
• parts of which, with the exception of the main structures, are subject to repair or replacement systematically;
• in need of continuous updating by replacing individual parts;
• non-repairable, requiring replacement at the end of the regulated service life.

Obsolescence

This term is understood as the loss of economic feasibility of using production assets until 100% physical depreciation is reached. Its value is taken into account during the revaluation.

Types of obsolescence:

• caused by the influence of technological progress, for example, the introduction of new high-performance equipment;
• caused by the depreciation of funds due to a decrease in the cost of reproduction of similar objects.

Obsolescence can be:

• partial (operation at individual operations remains appropriate);
• full (use unprofitable).

There are also social and environmental types of depreciation caused by the adoption of new legislative norms or restrictions in the field of labor protection, the requirements of which the available production resources do not meet.

A feature of fixed assets is their multiple use. However, the time of their operation has certain periods, which are limited by wear and useful life.

Under depreciation of fixed assets and intangible assets should be understood as the gradual loss of its value or useful use with its corresponding transfer to production costs.

There are physical, moral and social depreciation of fixed assets.

I. Wear and tear is the loss of fixed assets of their production and technical qualities during operation and the influence of natural and climatic conditions.

Physical wear and tear that occurs during the operation of an object is called physical wear and tear of the first kind. It is predominant and determines the amount of wear, the need for repair work and the service life of the object. Physical wear that occurs when equipment is idle as a result of natural physical and chemical influences is called physical wear of the second kind.

The amount of physical wear is influenced by a number of factors:

The degree of loading of fixed assets in the production process;

The quality of fixed assets;

Peculiarities technological process and the degree of protection from external conditions;

Qualification of workers and their relation to fixed assets;

Quality of care for fixed assets;

To determine physical wear and tear, two methods of calculation are used: 1. based on a comparison of actual and standard service life and scope of work; 2. based on data on the technical condition of the means of labor, established during the survey.

The coefficient of physical depreciation by the volume of work is considered only for those inventory items that have a certain productivity (machines, machine tools). And it is calculated by the formula:

And f \u003d (T f * P f) / (T n * P n) * 100%,

T f - the number of years actually worked by the machine;

T n - standard service life;

P f - the average number of products actually produced per year;

P n - annual productive capacity(or standard labor productivity).

The physical depreciation of individual inventory objects can be determined using the coefficient of physical depreciation by service life (used for all types of fixed assets), based on the fact that physical depreciation occurs evenly throughout the entire life of the object below the standard.

And f \u003d T f / T n * 100%,

If the actual service life is equal to or greater than the standard, then the coefficient of physical wear is calculated by the formula:

And f \u003d T f / (T f + T in)

T in - the possible residual service life of the object in excess of the service life actually achieved at the moment.

The physical condition of fixed assets on a certain date is characterized by the coefficient of validity of the main fund, which is calculated by the formula:

K g \u003d [(P s - I) / P s] * 100%

where P s is the initial cost of fixed assets (or replacement cost);

I - the amount of depreciation (depreciation for the entire period of operation).

II. In addition to physical wear and tear, obsolescence of fixed assets is a loss economic efficiency and the expediency of using fixed production assets until the expiration of the period of complete physical depreciation. In this case, the loss of value occurs regardless of whether fixed assets participated in the production process or not. Obsolescence is of two kinds:

Obsolescence of the 1st kind is due to an increase in labor productivity in industries that produce elements of the fixed capital, due to which the production of previously produced machines is carried out with less labor costs and they become cheaper.

And m \u003d (P s - V s / P s) * 100%,

where P s and V s are the initial and replacement cost of fixed assets.

Obsolescence of the second kind is associated with the emergence of new, more productive equipment produced at the same cost, which leads to a decrease in the relative utility of obsolete fixed assets.

Im \u003d (P2 - P1) / P2 * 100%,

where P 2 , P 1 - the performance of modern and obsolete machines.

When considering obsolescence of the second kind, partial complete and hidden obsolescence are distinguished.

Partial obsolescence is a partial loss of consumer value and the value of machines. It may be appropriate to use the machines in other operations, in other production conditions, where it will still be effective.

Complete obsolescence is the complete depreciation of the machine when its operation in any conditions is unprofitable.

Hidden obsolescence - implies the threat of depreciation of the machine due to the fact that there is a task to develop a new, more productive and economical one.

III. social wear- is determined by the degree of discrepancy between the social characteristics of a given period and its socially normal level. This discrepancy may be due to two reasons:

Due to the physical wear of the term of labor, its social characteristics change (for example, a decrease in safety, an increase in harmful emissions, dustiness of the workplace, etc.) in this case, social wear and tear is an element of physical wear.

Due to a change in the level of socially normal social characteristics (for example, the severity of the workplace illumination norm, the maximum permissible concentration of harmful substances, etc.), in this case, social wear and tear is an element of obsolescence.

Together, these two concepts constitute social wear and tear, which has two varieties:

1. The moral form of social wear and tear is caused by the emergence of new technology that improves working conditions and changes in the level of socially normal norms (according to working conditions)

2. The ecological form of obsolescence is caused by the appearance of new technology, which, to a lesser extent than the former, has negative impact on the environment, as well as the tightening of norms and restrictions on the degree and nature of the impact of production on the environment. This type of wear and tear is associated with global consequences. Consideration different types social wear and tear shows that it is more economically advantageous to prevent pollution environment and create progressive working conditions from the outset rather than deal with the consequences of unfavorable conditions.