Methods of calculating depreciation: a general characteristic

The tax legislation provides for the accrual of depreciation in two main ways. When used, the amount of depreciation is calculated in order to reflect the amount of tax, which is determined in accordance with its rate and depending on the life of the facility. At the same time, the depreciation value is calculated independently for each object.

According to the Tax Code, a linear method for calculating depreciation is used by a taxpayer for such objects as buildings and structures. All these facilities are 8 - 10 groups. In relation to other objects, taxpayers have the right to use any method of calculating depreciation, however, it is necessary to observe the condition that the method of calculating depreciation can not be changed during the period that provides for its accrual. For example, if linear, the value of depreciation is calculated depending on the initial value of the object, or the value of the replacement value is applied , in the event that the revaluation of the object was carried out. If you use a non-linear method, depreciation is calculated only on the amount of the residual value, and it is necessary to comply with the condition that the method of calculating depreciation in this case can be changed at a residual value of not more than 20% of the original value.

In addition to these, there are also the following methods for calculating depreciation. These are: - the method of decreasing balance; - accelerated method; - method of proportional write-off; - The method of write-off in accordance with the number of years of useful operation. These methods of calculating depreciation are also allowed for application by the tax legislation of the Russian Federation, but their application is advisable only in those cases for which they are actually developed. Let's examine these depreciation methods in more detail.

When using the methodology of the reduced balance, the amount of the annual amount of deductions is determined on the basis of the residual value of the value of the object. For calculation, the beginning of the reporting period and the depreciation rate are taken . The formula has the following form: А = Сост х К х На / 100, in which: Сост - residual value of the considered object of charges, К - factor of acceleration, On - norm of amortization. A feature of this method is the fact that, when applied, the initial cost will never be written off. The advantage is that this method can be written off the maximum value of the value of the object at the very beginning of its operation.

Using the method of proportional write-off over the years of operation, the calculation formula looks like this: A = First x Toast / Tx (T = 1) / 2, where: First - the initial value of the accrual object under consideration, Toast - the end of the useful life period in Years, T - useful life. When applying this method during the current reporting period, the depreciation charges are equal each month to the same amount equal to 1/12 of the annual value.

When using the write-off method in proportion to the volume of output, the calculation formula takes the following form: A = C / B, where: A is the depreciation value per unit of output, C is the initial value of the object in question, is the calculated value of the output. Advantage and scope of this method is preferable if wear is directly caused by the intensity of operation.

Applied methods for calculating depreciation provide for an accelerated method, in which there is a rapid transfer of the book value of the object to costs. This method is used, as a rule, in the case when enterprises or organizations produce mass technological re-equipment of production. Such a methodology helps to accelerate the process of improving enterprises, and in addition, it helps to reduce their profit taxes.