How to calculate depreciation ?
Have you ever thought about how the costs can be attributed to the costs that were made when purchasing the OS?If you get this question all the same worries, you just need to know about such a concept as "amortization OS" and about how to calculate depreciation.
Amortization called the gradual transfer of the asset to the cost of production.It is calculated on a monthly basis.several methods used for calculating depreciation.
Methods of calculating depreciation
answering the question: how to calculate the depreciation of fixed assets, please refer to the methods of its calculation.Among them are the following methods:
- straight-line method;
- declining balance method;
- method of charging it on the sum of numbers of years of useful life;
- and the method of calculation of depreciation in proportion to the volume of goods (works and services) issued (provided) now.
Different ways of calculating depreciation
How to calculate depreciation straight-line method?Perhaps this is the easiest method.He suggests that the depreciation will be charged uniformly throughout the operational period of the main means of the original of its value, in accordance with the depreciation rates in the enterprise.Calculated on the basis of such a rule set number of years of useful life of the object OS.
Regarding the declining balance method, when it is also the depreciation calculated on the basis of the annual rate.Determined in the same manner as in the above method.However, cushioning is calculated based on the residual value.Also, this method is called linear.
method of calculating depreciation on the sum of numbers of years of useful life is calculated as follows.The basis is the number of years that remain until the end of the service life of the asset.This figure is divided by the sum of years of useful service.The result is multiplied by the initial price of the asset.
It should be noted that the method of depreciation in proportion to the operating system of goods (works and services) issued (provided) now requires that depreciation will be calculated based on the volume of manufactured products and services rendered, as well as the work done.The rate of depreciation
useful life of the OS are registered in terms of the Classification of fixed assets, approved by the Russian Government on 1.01.2002 №1.In the event that a particular object is not included in this classification, the company determines its operational period.
In order to understand how to calculate the rate of depreciation, you must know that this concept determines the amount of money the value of which is deducted on a monthly basis to the costs.The calculation of depreciation charges norm begins with the definition of the initial (residual) price of a fixed asset and the timing of its production operation.
How to calculate the amount of depreciation and to record?
So, initially it is necessary to choose the method of calculation of depreciation, which is absolutely necessary to secure the company's accounting policies.Next, you need to approve the order of depreciation rates on all fixed assets.
The next step will be the direct calculation of depreciation, which, as a rule, carried out at the end of each month.To calculate the need to use the method of determining the amount of depreciation, depending on the method adopted by the company.About the techniques already mentioned above.
The final stage will be the calculation of depreciation in accounting.To carry out this procedure by using the following accounting entries:
Am 20, 25, 25, 44 KT 02
Now you have the complete information on the transfer of costs to the amounts that were spent on the acquisition of fixed assets.