IBE - what is it? Accounting for low-value and high-wear items

Accounting for low-value fast-wearing items (IBE) is an extremely important category in accounting. In its activities, no enterprise can do without the above phenomenon. In this article we will try to give the fullest and most comprehensive answer to the question: "IBE - what is it?"

A bit of theory

Any enterprise buys and uses many products that can not be attributed to fixed assets. Here they are in the accounting and are called low-value items that are quickly wearing. To make it more clear, we will tell you what exactly is going on.

What can be attributed to the IBE

In fact, low-value and wear items are means of labor, but their value is included in the stock of the enterprise. The main principle of assigning a particular equipment, tool, etc. to the IBE is to determine its service life, as well as the initial price.

It should be borne in mind that to the IBE we include a part of the inventory of the organization, whose service life is less than one year, and their cost does not matter (they are wear-and-tear).

Another principle of classifying goods to this group is the upper limit of the value of low-value wearing items. It is she who determines whether to attribute them to fixed assets or to the IBE. Thus, the cost of MBE is a significant criterion.

Using this definition, clothing, footwear, office equipment, utensils, household items, etc. can be classified as low-value wearing items. Regardless of the useful life and cost, the IBE group also includes specialized tools, narrow-purpose devices necessary for production; Replacement parts of equipment; Guns for catching; Chainsaws.

To MB-objects can not be attributed agricultural machinery and tools, construction equipment and tools, working kind of livestock. All this is included in fixed assets irrespective of their service life and cost.

A bit of history

The money spent by the organization to purchase certain items should not be included in the expense item. These things can be used for a long time, and can have a one-time use. In the first case we are talking about fixed assets. But in the second - on the negotiable. And the expense is recognized at the time of writing-off. So the accountants thought and thought. But even in the last century experts in this field came to an important decision: items that are used for several years and which at the same time have a fairly low cost, it is difficult to be classified as fixed assets. Therefore, our colleagues decided to remove a certain part of the objects from the mentioned category. They were called low-value wearing items (MBE) and included in working capital.

Criteria for assigning goods to an infantry fighting vehicle

The title of this term already contains two principles: a small price and a long service life - fast wear. The main criterion was the cost limit and service life. The limit changed from time to time. But the term of service has always been understood for one year. Hence, theoretically there could be only four variants of attributing the acquired things to the category we are considering:

1. The item costs less than the cash limit, but it is in operation for more than one year.
2. The thing costs less than the limit, but it serves less than a year.
3. The item costs more than a limit, it serves more than 12 months.
4. The facility costs less than the limit and serves less than a year.

Previously, only the fourth group could be attributed to the IBE and called working capital. Initially, it was assumed that the first, second and third groups would be allocated to fixed assets. But in practice, people remembered about the price limit and forgot about the time of service. Thus, the IBE became an independent group. Entire departments of institutes were engaged in research of low-value and quickly wearing items.

How to work with IBE. Practice theorists vs

Practice worked out several options:

1. Objects were brought into the operation and transferred to the account 12 "Low-value quick-wearing items". They passed through the purchase price in the asset. And at the end of each month it was written off for expenses of 1/12 of this price. That is, the service life could be more than a year, but the cost of the equipment or, say, the inventory was written off exactly in 12 months.

2. When commissioning the object, the wear was immediately charged at 50%. And the remaining 50% - at the time of its write-off.

The second option was used, of course, more often. It was more simple for the accountant. In addition, the first had its drawbacks. In the month of purchase, the entire value of the object passed through the balance sheet, and this illogically increased the profit of the given month. Further, of course, a uniform accrual of depreciation reduced the profit of subsequent reporting periods, but this was not entirely correct. From the scientific point of view, both options were imperfect.

There was one more drawback in accounting for the IBE. There are such things, the price of which is small. Practitioners of accountants insisted that these items were immediately written off to current expenses. And there is no need for any depreciation and wear. Quite convenient, is not it? But the theorists were very embarrassed by this approach. However, the outcome of the case, their opinion is not particularly affected. Practice remains a practice, because it all reduced the profit of the enterprise in the month of purchase, and therefore, simplified the work of accountants.

Later decided to abolish the IBE, but this did not eliminate the problem. But that's all - yesterday's day. And today, low-value and wearing items still exist, and their records are kept. About how this happens, and will go further. So, IBE: what is it and what does it eat?

Work with PBU 5/98

Accounting for low-value and short-wearing items is carried out in accordance with the provisions of Accounting PBU 5/98 ("Accounting for inventories"). The life cycle of low-value wearing items has three stages: arrival, operation, disposal. In accordance with this, the following stages of accounting are distinguished:

• Receipt;
• Issue of IBE;
• Putting into operation;
• wear;
• Writing off the IBE.

The first and second versions are made by analogy with the order of accounting of materials. But the MBP in operation has its own characteristics, which are due to the choice of the type of accounting and write-off.

Low-value items, the price of which is within 1/20 of the established limit for a conventional unit, is written off into production costs as they become operational. For BMPs above 1/20 of the specified minimum, it is customary to accrue depreciation. It is usually calculated in such ways: percentage, linear, proportional to the volume of output. Briefly explain what it is.

When using the linear method of depreciation, norms are taken, based on the useful life of the IBE. Accumulating amortization in percentage terms, one of two options is used: in the amount of 100% when transferring into operation or at a rate of 50% of their price when issuing from the warehouse for use, and the remaining 50% - upon retirement. Balances of write-offs of the IBE (material values) come at the market price as of the write-off date and are recorded for the financial result (DT 10, KT 80).

More details about the account: stages, features, nuances

Each enterprise maintains an account of the IBE. How does this happen in practice? The algorithm is simple:

1. The organization's accounting department arrives at goods.

2. It monitors security.

3. Determines the cost of low-value wearing items.

4. It monitors the service life.

5. He writes off the worn out MBE.

Since 2014, during the transfer of things into service, the BMP wear is not calculated for the whole cost, but for half the minus residual. The rest in 50% is charged already at write-off. When transferring low-value, fast-wearing goods for use, they are assigned to materially responsible people. Then they are assigned inventory numbers, which simplifies the inventory. At the last stage, an act of write-off is made (for a sample of filling see below), the IBE.

These items must not be forgotten to be removed from the register (from a materially responsible person). Enterprises independently determine the value limits for the IBE. What does this mean? Absolute benefit. Because the mentioned category is, in fact, the main means. IBEs in operation undergo moral and physical deterioration, the cost of fixed assets is reduced. In the balance sheet they pass at the residual value, which is the difference between the initial price and the amount of accrued depreciation for a certain reporting period. The initial cost of the IBE is also included in the costs of acquiring them.

Wear and write-off

The depreciation of the IBE is part of the costs of production. To calculate depreciation for each individual item, as for fixed assets, is difficult. Because they choose one of the two ways of accounting IBE (what is it - we painted in detail above), according to the accounting policy of the enterprise. There is a special act of writing-off. A sample of such a document, presented in the photo below, will help orient the beginning accountants in this matter.

It happens that IBEs issued for use are immediately written off: debits of accounts 20, 23, 26, 25, 31, 43. Or DT 29, 08, 88, 81, 96. Credit account 12, sub-account 1.

Accounts for accounting IBE

To account for the movement of the MBP and their depreciation, different accounts are used: 13, 12, 15, 16, 48 ... All actions related to the receipt of the IBE are the same as when accounting materials, ie, 15, 16 accounts are used. Then all operations are reflected in advance in DT15. Then come and write off to the IBP account No. 16.

The failed objects are made out through the act of retirement.

Well, we have considered such a concept as the IBE: what is it, how are records of items of this category carried out and their cancellation. I would like to hope that the time spent reading the material was not wasted for you.