Tip 1: How to find the amount of depreciation
Tip 1: How to find the amount of depreciation
The means of labor expended on production can not last forever. They have a very unpleasant property for financial calculations to wear out. The amount, spent on eliminating wear, called depreciation. They should be put into the cost of the finished goods in order to cover the corresponding costs of the enterprise.
Instructions
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Wear can be both physical (loss of properties,quality of materials, etc.), and moral (obsolete equipment models, the introduction of other technologies, changing requirements, etc.). Wearing the fixed assets of the enterprise is inevitable not only with their constant use, but even with complete inactivity, since in this case there is the influence of external factors such as air, humidity, etc. There is a third type wear - economic, which appears due to the impact of external political, economic and other factors.
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Calculating the amount wear is to determine the depreciation charges for the period of service of fixed assets. Depreciation charges are the costs of restoring the working condition of fixed assets, eliminating wear. These deductions are included in the cost of finished goods in order to cover the costs of the restoration of fixed assets. It's about physical depreciation, because it is disposable.
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There are several methods for calculating the amount wear, but they can be divided into two main ones - linear and nonlinear. According to the linear method, the annual amount wear is determined on the basis of the original costfixed assets taking into account depreciation rates and useful life, which is determined by the enterprise independently by the Classification of fixed assets.
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The formula of the linear method for calculating the annual amount wear: SI = (PS * NA) / 100, where SI is the sum wear, PS - the initial value of fixed assets or one of their objects, NA - depreciation rates.
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The non-linear method, in turn, has two subspecies: it is a method of decreasing the balance and writing off the value. By the method of reduced balance, the amount wear is determined on the basis of the residual valuefixed assets at the beginning of the reporting period (year) and depreciation rates: CI = C_ost * (k * NA) / 100, where C_ost is the residual value of fixed assets at the beginning of the reporting period, k is the acceleration coefficient that is accepted by each organization independently, but not can be more than 3.
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The method of writing off the value of the sum of the years of useful use of fixed assets is to determine the amount wear at their initial cost and the ratiothe number of remaining years and the total number of years of service: SI = PS * T_ost / (T * (T + 1) / 2), where T_ost is the number of years remaining until the end of the service life, T is the total number of years of useful life of fixed assets.
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Most of the enterprises, namely about 70%,prefers to use a linear method in his calculations. It attracts with its simplicity and minimum of input data, which is always present in the company's balance sheet.
Tip 2: How to calculate the wear and tear of equipment
Under wear of equipment mean the loss of its value and productivity. It can arise for many reasons: aging of equipment, the loss of its competitiveness, etc. At the moment, applying the latest technology, it is possible to achieve success in the fight against wear, thereby prolonging the service life of equipment, but still this task remains very urgent.
Instructions
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Describe and classify the equipment. This work is the most difficult and laborious. It takes time and considerable effort, since it is rather difficult to use existing databases, for example, the accounting records of fixed assets, since they were compiled completely according to other principles, that is, There is no hierarchy of description, there is no binding to technical locations, etc.
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Examine the equipment "live", although this isleads to an increase in time costs. This must be done, as during the reconstruction and its modernization its technological scheme, device, etc. changed. Such changes did not always fit in the technical documentation and passport of equipment, or they are lost. Thus, in practice it is not enough to use only technological documentation and passports of equipment. The only method to solve this problem is the time-aligned description of equipment and its overhaul.
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Define a hierarchy of equipmenti.e. divide it into main, auxiliary, etc. The uppermost step must correspond to technological objects (elements of the technological chain) that produce production. Then follow the individual units of equipment, and then the nodes and aggregates of which they are composed.
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Determine the physical wear and tear of equipment: describe and classify the equipment of the process chain of the shop; develop the main indicators that characterize the state of the productive capacity of the unit of equipment; determine the weights that are required to calculate the integral measure of the physical wear of the unit of equipment (determined by peer review); Determine the current values of the main indicators and compare them with the reference values; Carry out a calculation of wear by groups of the same type of equipment (of equipment, on which produce the same products or technological operations); Calculate the wear of the process chain, which is based on data on actual wear by groups of equipment.
Tip 3: How to find the depreciation rate
Amortization is a transfer of valuefixed assets and is charged according to the norms. These norms are established by the state, and the enterprise only chooses the method of formation of the depreciation fund. Coefficients depreciation are developed for each specific group of fixed assets.
You will need
- - balance sheet;
- - The accounting policy of the organization;
- - calculator.
Instructions
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Norm depreciation - is set by law or as otherwise the percentage of the book value of fixed assets are written off each year to the cost of production.
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In tax accounting there are two accrual methods depreciation. The most common is linear. It is used for charging depreciation on buildings, structures, transmission devices. In this case the norm depreciation for each object is determined by the formula: NA = (1 / n) * 100% / N - useful life of depreciable property, expressed in months.
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If a nonlinear method is used, thisthe indicator does not depend on the useful life of a certain fixed asset. It is characteristic for him to assign objects of property to groups, for each of them, depreciation.
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The method of decreasinguse for calculating various coefficients. They do not apply to fixed assets belonging to the first and third group. Upgrade - there can not be more than two, corrective - should not exceed three.
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Norm depreciation is determined on the basis of the normative periodservice of fixed assets. It also depends on cost, operating conditions, NTP level, state economic policy. Its increase helps to reduce the accrual period depreciation.
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Annual rate depreciation is the ratio of the annual amount depreciation to the average annual value of fixed assets. Taking into account repair costs and the liquidation value of fixed capital, this formula takes the following form: NA = (Carrying amount of OPF + Capital repair costs - liquidation value) / (OPF service life * Carrying amount of OPF * Standard service life).
Tip 4: How to find the initial cost of products
To find the initial cost of products,It is necessary to sum up in monetary terms the amount of resources expended. These include raw materials and semi-finished products, energy and fuel, labor remuneration and other costs for production and sales.
Instructions
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The purpose of calculating the initial cost of productsis an analysis of the efficiency of resource use in production. Based on this data, plans are being developed to optimize costs and save. A rather extensive evaluation of all areas of production is applied: the organization of labor, the level of capacities and technologies, the expediency of spending fixed assets,
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To find the initial cost you needcalculate the total cost estimate for the following categories of work, services and materials: • Start-up, i.e. preparatory measures for the development of new types of products, the formation of a production plan, the development of technologies, etc. • Marketing research • Recruitment and training • Human resources management costs • Direct production • Technology improvement, quality improvement • Sales. This category includes expenses for the creation or purchase of packaging, packaging, transportation of products to the place of sale, storage, promotional activities, etc. • Legal services • Other costs associated with the release of products and their turnover.
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As a rule, in any company existsSome structure of the initial cost, which reflects the individual types of costs. Such a classification by different calculation items allows us to identify the ratio of costs in the directions and analyze the degree of their influence on the initial price (without extra charge) of the goods. The purpose of such an analysis is to minimize costs, increase profits.
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At most industrial enterprisestwo values are calculated: the workshop initial cost and the total initial cost. The first consists of the following seven calculation items: • Raw materials and basic materials • Electricity for the operation of equipment • Salary of the main production staff (workers) • Supplements to the main staff for overtime, night shifts or holidays • Social deductions • Amortization and additional materials for the operation of equipment (oil, liquid for cooling, lubrication, etc.) • Other production costs for the shop.
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To find the full initial costproducts, you need to add three more to these articles: • General business expenses: support staff, rent of premises, consultants' services, etc. • Mastering the production of new product names • Other costs: marketing, advertising, etc.
Tip 5: What is the difference between wear and tear
The concepts of depreciation and amortization have much in common and are associated with the depreciation of production assets. Meanwhile, they are not identical and they should be distinguished from each other.
The concept of depreciation and amortization
A significant share of the company's costs is associated withcosts for capital resources (equipment, premises). Their peculiarity is that they are not spent for one production cycle, as raw materials, but serve for years. But at the same time they are exposed to wear. Wear is the process of losing an object of its characteristics, resulting in a reduction in its value and depreciation. It can concern such basic means of the enterprise, as the equipment, a building, transport and so forth. In economic sense distinguish physical and moral deterioration. Physical wear associated with depreciation of property when it lost its properties as a result of aging when using this property. It is calculated as the ratio of the asset's operating time to the standard service life of the asset. Moral depreciation occurs as a result of a partial loss of fixed assets by its fixed assets as a result of the appearance of new more advanced technologies or under the influence of other factors. Amortization is a process of partial transfer of the cost of fixed assets as they wear to the cost of production. It is carried out using depreciation rates. There is a so-called cycle of fixed assets. It includes three stages: depreciation, amortization and reimbursement. Depreciation and amortization are carried out during the use of fixed assets in production, compensation - when they are created and restored.Comparison of depreciation and depreciation
Based on a comparison of the concepts of depreciation andthe following differences can be distinguished: - by the time of the offensive - depreciation is accrued as a result of depreciation of fixed assets, i.e. - depreciation is the cash equivalent of depreciation of fixed assets, whereas depreciation has no monetary expression - depreciation does not necessarily depend on the level of depreciation - the asset can be fully depreciated, while still not completely physically deteriorated and subject to future use; there are also reverse situations - when the equipment fails before it is fully written off its value, - companies can independently determine depreciation rates - in accounting, the term depreciation is not used, only - depreciation; wear is a concept from the field of financial analysis, the term depreciation is fixed by law, whereas the legal definition of wear is absent, wear is the depreciation of fixed assets and the obsolescence indicator of equipment, and depreciation is the carry over to the value of the output that allows to restore the fixed assets fund.Council 6: What is the depreciation of fixed assets
The basic means should be recouped andbring economic benefits. If the operation of the fixed asset does not bring profit, then the organization does not make sense to spend its financial resources on its maintenance. Wear shows whether the underlying product is suitable for future use, and the amount of depreciation is the degree of its payback and financial return.
Physical and moral wear
Depreciation of fixed assets is of two types: physical and moral. Physical depreciation implies the need for urgent or major repairs of the fixed asset or its individual parts or parts. Moral wear indicates the degree of obsolescence of the fixed asset with the appearance on the market of technically more advanced and modernized means of labor. The moral wear and tear of fixed assets depends on the technological and information progress of society. Physical deterioration is more susceptible to machinery, equipment, production machines, to the moral - computers, laptops.Depreciation of fixed assets
Depreciation of fixed assets is a gradualtransfer of the cost of fixed assets to the cost of finished products, works performed or services provided in the form of monthly depreciation. Amortization is the value expression of the degree of depreciation. The monthly accrual of depreciation and the inclusion of its amounts in the cost of production, works and services is a process of recoupment of fixed assets. In each ruble of revenue and profit the enterprise pays a few cents of depreciation. This is the financial return of fixed assets, that is, when the main asset is able to bring economic benefit to its owner. The amount of depreciation is reflected in the sale price of finished goods, works performed or services rendered, which is ultimately paid by the final consumer. Depreciation of fixed assets can be accrued by linear and non-linear methods. In accounting, you can use any methods of calculating depreciation at the choice of the organization, in the tax - only linear. The methods of depreciation used at the enterprise are established by the accounting policy for the purposes of accounting and taxation. The degree of depreciation shows how often the enterprise updates its fixed assets. Depreciation should be less than 50% of the total value of fixed assets. If the wear is more than 70%, then the organization needs to update or upgrade the production capacity, otherwise a high degree of wear can negatively affect the production cycle and product quality, cause interruptions and downtime in the production process. And this, in turn, will affect the amount of revenue and profits from the sale of the enterprise.Tip 7: Coefficient of wear and other indicators of the state of fixed assets
The condition of fixed assets reflects their technicalsuitability for further operation. Worn-out fixed assets more often need urgent or major repairs, upgrades, can cause interruptions, downtime in the production process and product mar- kets. Therefore, it is important for enterprises to monitor their condition by calculating special indicators.
