On depreciation can be said as a gradualthe process of transferring the value of fixed production assets to the output. According to depreciation rates, the company makes deductions to compensate for the moral and physical aging of fixed assets. The depreciation charges are related to the costs of production and are made monthly from the accounting of the value (balance) of fixed assets by inventory objects or separate groups.
The depreciation rates for fixed assets representis the annual percentage rate of the cost of production fixed assets established by state bodies and shows the volume of annual deductions in value terms. In other words, depreciation rates are expressed as a percentage of the ratio of depreciation over the year to the value of the balance of fixed productive capital.
In general, this coefficient is established and periodically reviewed by government agencies, depreciation rates are the same for organizations and companies of all forms of management and ownership.
State's depreciation policy is part ofgeneral scientific technical policy of the country. The state, setting the rate of depreciation for calculation, the order of their use and accrual, regulates the nature and rates of reproduction in all sectors of the economy, and by means of this coefficient determines the rate of depreciation and then renewal of fixed capital.
The current depreciation system in the countrythe following characteristics: the depreciation rates are unified, a uniform straight-line method is used for the accrual, deductions are included in the cost price, are made in the period of the actual period of use of the means of labor.
Today, there are new depreciation rates and rules for its calculation.
There are no longer any deductions for capital repairs. Any repairs are carried out at cost, and, if necessary, a reserve fund of deductions for repairs is created.
At the end of the service life (normative) forvehicles, equipment or machinery, the amortization charge ceases. Although before the accruals were made during the entire period of use of fixed assets, regardless of the service life. On structures, buildings and other fixed assets remains the previous procedure for calculating depreciation for the entire actual period of operation.
To increase the interest of companies to upgradefixed assets are allowed to apply accelerated depreciation of active fixed capital (equipment, machinery, transport). The essence lies in the complete transfer of the cost (balance) data of funds to costs in a shortened time, while the depreciation rates are increased, but not more than twice.
In addition, small businesses and organizations in thethe first year of operation can additionally write off the cost of half the value of their fixed assets, the service life of the objects should be more than three years.
Due to the fact that the acceleratedannual depreciation rate, it is possible to update active fixed capital more quickly, accumulate a sufficient amount with the help of depreciation deductions for renovation and reconstruction of production, and reduce the profit tax. In addition, this measure avoids the physical and moral wear and tear of active production assets, and maintains them at a sufficiently high level, which will increase production and produce higher-quality products with a lower cost price.
A positive phenomenon is also that the depreciation deductions remain completely at the disposal of the company.
