Before we talk about what relates to fixed assets should be given the definition of the concept.So, plant and equipment are some of the property of the organization, which is used for a long period of time (more than 12 months) in the production and management purposes.
What is the main means
What refers to the fixed assets?It all assets accepted for accounting in the form of fixed assets only in the case when the following conditions are satisfied at the same time:
- objects intended to be used for industrial purposes, or else at the time of the provision of services, execution of works, are to meet the management needsorganizations.
- objects intended for use over a long period of time, namely, more than 12 calendar months.
- organization does not imply subsequent resale of a particular object, that is, it is a very "personal" use.
- Objects will be able to bring economic benefits in the near, or in the more distant future, that is, income.
If more specific and substantive debate that refers t
It is worth to say about non-profit organizations taking objects to the financial statements.There are considered to be the primary means objects that are not used in the work, which is aimed at achieving the objectives set out in the statute.Of course, the property is also required to be operated over a period of not less than 12 months, during which the organization does not plan to resell it.
In general, the Tax Code does not exist as such, the concept of "fixed assets".Nevertheless, it is determined that should be allocated to depreciable property.And it's all the same objects as the useful life of the use of which is more than 12 months, and the initial cost of more than 10 thousand rubles.
, plant and equipment, the purpose of which is limited to providing for payment for temporary use or possession with the objectives of generating revenue in the financial statements are shown in the compositions of profitable investments in value.
Valuation of fixed assets
Assess fixed assets according to the primary, residual, and also the replacement value:
- Initial cost - according to its original value, all that otsnositsya to fixed assets, taking in the financial statements.This value is the total amount of the actual cost to the company for the purchase, manufacture or construction of the concrete plant and equipment, excluding VAT and other recoverable taxes.The initial cost of the funds that are made to the account of contributions to the charter capital of organizations - it is their direct monetary evaluation, which is coordinated by the founders.If the funds are completely free, that is dedication, the initial cost is generally recognized them at this point in time the market rate.Accounting involves changes in the historical cost at completion, additional equipment, reconstruction, modernization, partial liquidation and revaluation.
- The residual value - by the residual value is the difference between the value of the original, as well as accrued from the use of depreciation.In the balance sheet fixed assets are recognized according to their residual value.
- Replacement cost - it assesses the fixed assets in the current circumstances, given the current price and technology.
After reading that refers to fixed assets, as well as analysis of their evaluation should deal with the manner in which funds may come under discussion in the organization.There are several ways:
- On account of contributions to the charter capital of the founders.
- As a result of construction works of various kinds.
- Through the acquisition of the appropriate fee.
- As a result of dedication, that is, free transfer.
simple process involves the systematic transfer of the value of funds on products that are made, that is, services, or on the same work.Why is this done?Replies to this question, there are several.Some experts in the field of economy believe that the depreciation mechanism creates cash flows in the future directed to the fixed assets.Others are looking for depreciation as a method of separation by periods of large-scale spending, respectively accrual.Monthly fixed amount of depreciation, which is defined for each object separately.
So we discussed the question of whether that applies to fixed assets.This is one of the key concepts in the whole of economic theory, without which you can not do in the preparation of the business plan, the successful conduct of business, and, in general, this is in our progressive times, probably, should have an idea of any self-respecting man.