The increase in the value of fixed assets. Modernization of fixed assets - accounting and tax accounting
Fixed assets for the purpose of calculating income tax include property for which the following conditions are met (Article 256, Article 257 of the Tax Code):
- used as a means of labor for the production and sale of goods (performance of work, the provision of services) or for managing an organization;
- owned by the organization on the basis of ownership;
- used to generate income;
- its useful life is more than 12 months;
- initial cost - more than 100,000 rubles.
Fixed assets in 2016: minimum cost
So, the minimum cost of an object at which it is considered a fixed asset is 100,000 rubles. The value criterion for classifying property as fixed assets was changed from 01.01.2016. Recall that earlier it was 40,000 rubles.
Fixed assets tax accounting in 2016
When accepting fixed assets for tax accounting, it is necessary to establish their initial value. It is defined as the sum of the organization’s expenses for the acquisition, construction, manufacture, delivery and bringing to a state in which the fixed asset is suitable for use (excluding VAT) (paragraph 2 of clause 1 of article 257 of the Tax Code of the Russian Federation). If the fixed asset was received free of charge or discovered as a result of the inventory, the initial value of the object is determined as its market value (paragraph 8, paragraph 20 of article 250 of the Tax Code of the Russian Federation).
It is also important for the organization to determine whether depreciation is charged on an asset. The list of fixed assets for which depreciation is not charged is given in paragraph 2, paragraph 3 of Art. 256 Tax Code of the Russian Federation.
Depreciable fixed assets of the organization must be established.
Modernization of fixed assets: accounting and tax accounting
From time to time, to complete the technological or official purpose of the fixed asset, to use it under high loads or to give it other new qualities, work is underway on completion, retrofitting, modernization. This is their difference from repair, the purpose of which is to maintain the facility in working condition.
The incurred costs of modernization increase the initial cost of the property, plant and equipment (paragraph 14 of PBU 6/01, paragraph 2 of Article 257 of the Tax Code).
The costs of modernization are reflected in the debit accounting of account 08 “Investments in non-current assets” from the Credit of accounts 02 “Depreciation of fixed assets”, 10 “Materials”, 60 “Settlements with suppliers and contractors”, 70 “Settlements with personnel for remuneration”, 69 “Settlements for social insurance and security”, etc.
Under the modernization of fixed assets in 1C 8.3 refers to a change in their original properties. As a rule, it makes sense to upgrade for the better. For example, add additional functionality or precision processing.
Accordingly, for this it is necessary to purchase the necessary additional equipment and carry out installation work. Work can be done on its own, or can be done by third parties. In this article, we will consider the option when another organization performs the work, as this will more fully reveal the topic.
For an example, we will upgrade a woodworking machine from the demo database 1C Accounting 8.3. Namely, we will replace his engine.
Arrival of the OS object for modernization
First you need to make a purchase of this engine. The receipt is made out as usual, only the type of operation you need to select "Construction Object":
We fill in the necessary details:
- Organization
- Counterparty;
- Contract;
- In the tabular part 1C, select the construction object. By default (at least in my database) in the section “Directories” the reference “Building objects” is missing. It needs to be added to the selected teams. We go to the "References" menu and click the settings button:
In the drop-down list, click on the navigation setting.
A window with two panels will open. In the left we find the directory “Construction Objects” and transfer it to the right panel:
Get 267 1C video lessons for free:
Now you can add our engine to the directory. We will call it the “BM-500 Engine”.
If the modernization of fixed assets is carried out infrequently, you can do easier.
In the tabular part of the newly created document of receipt of the construction object, click the "Add" button. A new document line is added. In the column “Construction Object”, select “Show All”:
The directory “Objects of construction” opens, there we enter a new object and select it in the document.
- Now we will add the engine installation service on the “Services” tab. There are no tricks here, the service is selected from the Nomenclature directory, the quantity and cost are indicated. The only thing is the cost account. By default, it rises to 26. I want the service to be included in the cost of modernization. Therefore, I manually changed the cost account to 08.03.
We carry out the document. The following postings should be generated:
The cost of the engine and installation services is collected on the account 08.03.
Modernization of fixed assets in 1C
Modernization is carried out by the document “OS Modernization”. You can get to the list of modernization documents through the menu “OS and NMA”.
This material will help you understand how the modernization of fixed assets. You will find out what list of necessary documents for modernization and what special conditions exist for this. We will analyze common mistakes and answer the most common questions.
Modernization of fixed assets: general concept of OS
Fixed assets of the enterprise - part of the property of the organization, which generates income, for example, buildings, structures, vehicles, equipment. The company has the right to take the asset for accounting at its initial cost with all costs, and reevaluate them at least once a year in accordance with the established accounting policy.
OS in accounting and tax accounting
To put the main asset on balance, it is necessary to observe several conditions:
- Will work for the company and is not resold.
- At least twelve months of use
- It will bring real income to the organization.
If the company has taken into account fixed assets, then it is necessary to charge depreciation, at least once a month. Organizations working on the simplified tax system can independently provide for the frequency of depreciation in accounting policies.
There are three ways to write off the value of a fixed asset:
- linear
- method of reduced residue
- the method of writing off the value by the sum of the years of useful use;
There are some differences in accounting for modernization in the BU and NU: Costs that affect the initial cost of the facility, in some cases, differ. In tax accounting, it is possible to use the linear and nonlinear depreciation methods. Upon completion of modernization in accounting, it is necessary to increase the useful life of the object. There are no restrictions on its increase.
- In tax accounting, this period can not be changed, and its increase is possible within the limits established for its depreciation group.
OS modernization and reconstruction
Modernization- completion and retrofitting to change the technological or official purpose of the fixed asset, to acquire new qualities at the facility, for example, the ability to work with a higher load.
Taking into account the fixed asset, the accountant usually seeks to choose the same depreciation method and useful life for it in the accounting and accounting records. If the initial cost is the same, then the task is simplified: the amount of depreciation charged will be equal. However, after the improvement, the depreciation in the control unit and the control unit will be different. This can be explained by various methods of depreciation in the accounts.
Reconstruction - Reconstruction and improvement of existing equipment in order to improve the quality of work for further operation ..
As a reorganization of the OS, its productivity increases, its functional purpose changes. Thanks to the improvement of fixed assets, its useful life is increased, quality is improved, and other indicators are improved.
How is the modernization of fixed assets
Improvement can be implemented in two ways: economic, when the organization copes on its own or with the help of hired employees.
It is worth noting that if the organization did not incur any costs during the upgrade and it was done for free, then the initial cost will not change.
In some cases, after modernization, the technical characteristics of the object changed so much that it began to correspond to the new code of the all-Russian classifier. In this case, you have a new fixed asset. So, it is necessary to determine its initial cost again according to the rules of the Tax Code.
To carry out modernization, it is necessary to issue an order, appoint responsible persons, set the date and reasons.
Modernization and reconstruction postings
Reflected as follows:
Debit | Credit | Operation |
08 | 60 | Reflects the cost of the work of third-party organizations for modernization |
19 | 60 | VAT allocated |
68 | 19 | VAT deductible |
08 | 10 | Write-off of materials |
08 | 70 | Salary to the employees who made the improvement |
08 | 69 | Insurance premiums for workers |
08 | 23 | Auxiliary production costs |
01 | 08 | Increased OS cost after reconstruction |
List of documents for modernization
For modernization, the following documents are required:
- Internal order
- If the services will be provided by a third-party organization, it is necessary to conclude a contract for the work, and then draw up an act of acceptance and transfer of the asset for modernization, thereby protecting yourself from the event that the asset is damaged, then it will be possible to make a claim to the contractor for damages
- If the fixed asset will move somewhere, then draw up an invoice for internal movement
- As a result, an act of OS modernization is signed and transferred to accounting
Differences between modernization and repair
Modernization is part of the reconstruction, their action is aimed at improving, therefore, there are no differences between them, and the other two concepts, such as repair and modernization, are often confused.
It is more profitable for the enterprise to repair one or another OS, since the costs can be written off immediately, in turn, during the reconstruction they will have to be written off through depreciation, increasing the initial cost. But the Inspectorate Inspectorate in every possible way is trying, on the contrary, to see the modernization under repair.
If a situation arises in which, for example, in a broken equipment, you replace any part with a more advanced one, there is a risk of claims again from the tax authorities that there was not a repair, but an improvement. However, if the functional purpose of the object has not changed, then the truth is on your side.
But, in order to protect yourself, it is better to make a conclusion with a technical specialist that there really was a repair and make a memo, for which reason you did not install the same part, but resorted to a more perfect one. If you have crept in doubts about the definition and you are not ready to defend your point of view, it is better to consider the costs as expenses for the reconstruction.
If the cost share is a significant amount, then the organization can carry out repair work at the expense of a pre-formed reserve. To create such a reserve, it is necessary for a long period of time to include certain amounts in the cost of production; at the same time, postings are made Debit 20 (23, 25, 26) Credit 96, where the loan account. 96 and a reserve is formed.
The amount of monthly deductions for the formation of the reserve is determined as 1/12 of the annual cost of repairs according to the estimate. In the process of repair, all costs are written off to the account of this reserve using postings: D96 K10 (70, 60, 69 ..).
If by the end of the year, funds remained on 96 accounts, i.e. repairs cost less than the reserve was reserved, then the remaining funds must be written off to 91 accounts, thereby closing the account 96. If, on the contrary, the amount of the reserve is not enough for repair work, then the missing funds are either received through additional posting to increase the reserve background
An example of reconstruction and repair
On the balance sheet of the enterprise is a tractor. Its initial value is 400,000 rubles. In 2017, the facility was modernized using the contract method. The price of work amounted to 50,800 rubles (including VAT 7,749 rubles).
The following entries were made in the control unit:
Postings | Amount | Nature of the operation |
Dt 08 Ct 60 | 43051,00 | cost of modernization costs |
Dt 19 Ct 60 | 7749,00 | modernization VAT included |
Dt 01 Ct 08 | 43051,00 | Initial cost increase |
Dt 60 Ct 51 | 50800, 00 | Third-party payment |
Dt 68 Ct 19 | 7749,00 | Accepted for VAT deduction |
Accounts | Amount | Operation |
Monthly from January to December Dt 20.25.26 Ct 96 | 12500 | Accrual of reserve 1/12 |
At the time of repair Dt 96 Ct 10.70.69 | 130 000 | Repair Costs |
At the end of the year Dt 26 Ct 96 | 20 000 | Reversed unused reserve amount |
Answers to Common Questions
Question number 1. Where should the increase in the initial cost of the OS be attributed
Tip:in the accounting policy for accounting purposes, fix the same procedure for the termination and resumption of depreciation on fixed assets transferred for modernization for a period exceeding 12 months, as in tax accounting.
In this case, organizations will not arise in accounting temporary differences leading to education deferred tax liability .
The term of use of the OS after the upgrade
Modernization may increase the useful life of a fixed asset. In this case, for accounting purposes, the remaining useful life of the upgraded fixed asset should be revised (paragraph 20 of PBU 6/01, paragraph 60 of the Methodological Instructions approved by order of the Ministry of Finance of Russia of October 13, 2003 No. 91n). This is done by the acceptance committee when accepting the fixed assets from the modernization:
- based on the period during which it is planned to use the fixed asset after modernization for managerial needs, for the production of products (performance of work, the provision of services) and other revenue generation;
- based on the period at the end of which the fixed asset is expected to be unsuitable for further use (i.e., physically worn out). This takes into account the mode (number of shifts) and the negative operating conditions of the fixed asset, as well as the system (frequency) of repairs.
This follows from paragraph 20 of PBU 6/01.
The fact that the modernization did not lead to an increase in the useful life, the acceptance committee may indicate in the act on form number OS-3.
The results of the revision of the useful life in connection with the modernization of the fixed asset, issue an order of the head.
Situation: how to calculate depreciation in accounting after the modernization of fixed assets?
The procedure for calculating depreciation after the modernization of a fixed asset by accounting legislation is not defined. In paragraph 60 of the Guidelines, approved by order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n, only an example of calculating depreciation deductions using the linear method is given. So according to an example, with the linear method, the annual amount of depreciation of fixed assets after modernization is determined in the following order.
After the modernization, calculate the annual depreciation rate of the fixed asset according to the formula:
Then calculate the annual depreciation amount. To do this, use the formula:
The depreciation amount that must be charged on a monthly basis is 1/12 of the annual amount (Paragraph 5, Clause 19 of PBU 6/01).
The organization has the right to apply this method of calculation, even if as a result of modernization the useful life of the fixed asset has not changed (remained the same). This is because paragraph 60 of the Guidelines, approved by order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n, does not contain conditions on the mandatory extension of the useful life as a result of modernization. This means that the organization can calculate depreciation on the basis of the residual value of the fixed asset (taking into account its increase by the sum of the costs of modernization) and the remaining useful life, regardless of whether this period was increased after modernization or not. Similar clarifications are given in the letter of the Ministry of Finance of Russia dated June 23, 2004 No. 07-02-14 / 144.
If the organization uses other methods of depreciation (the method of decreasing the balance, the method of writing off the value by the sum of the number of years of the useful life, the method of writing off the value in proportion to the volume of production (work)), then the annual amount of depreciation can be determined in the order:
- the same order as shown in the example for the linear method;
- developed by the organization on its own.
Fix the applicable depreciation calculation method for fixed assets after modernizationin the accounting policies of the organization for accounting purposes .
An example of the reflection in accounting for depreciation on a fixed asset after its modernization
LLC Alpha is engaged in the repair of medical equipment. In April 2015, the organization modernized the production equipment, put into operation in July 2012.
The initial cost of equipment is 300,000 rubles. The useful life according to accounting is 10 years. The depreciation method is linear. As a result of the modernization, the useful life of the facility increased by 1 year.
Before the modernization of the fixed asset, the annual depreciation rate was 10 percent ((1: 10 years) × 100%). The annual depreciation amounted to 30,000 rubles. (300,000 rubles. × 10%). The monthly depreciation amount was 2500 rubles. (30 000 rub.: 12 months).
59,000 rubles were spent on equipment modernization. Modernization lasted less than 12 months, so depreciation was not suspended. At the time of modernization, the actual equipment life was 33 months. Its residual value according to accounting is equal to:
300 000 rub. - (33 months × 2500 rubles / month) \u003d 217 500 rubles.
After modernization, the useful life of the fixed asset was increased by 1 year and amounted to 8.25 years (7.25 + 1).
The annual depreciation rate of equipment after modernization amounted to 12.1212 percent ((1: 8.25 years) × 100%).
The annual depreciation amount is 33 515 rubles. ((217,500 rubles + 59,000 rubles) × 12.1212%).
The monthly depreciation amount is 2793 rubles. (33 515 rub.: 12 months).
Third-party OS modernization
BASIC: income tax
Do not take into account the costs of modernization of non-production facilities in tax accounting. This is due to the fact that all expenses that reduce the tax base must be economically justified (Clause 1, Article 252 of the Tax Code of the Russian Federation). That is, they are associated with the production activities of the organization.
This procedure follows from paragraph 2 of Article 257, paragraph 2 of Article 259.1, paragraph 2 of paragraph 3 of Article 259.2 of the Tax Code of the Russian Federation.
If the organization uses the accrual method, increase the initial cost of a fixed asset after completion of modernization (paragraph 1 of Article 272 of the Tax Code of the Russian Federation).
If the organization uses the cash method, increase the initial cost of the fixed asset as the modernization is completed and the costs of its implementation are paid (paragraph 3 of Article 273 of the Tax Code of the Russian Federation).
Important: if as a result of modernization the fixed asset changes so that a new fixed asset is created (new OKOF code), then determine the initial value of the property in alrightestablished by Article 257 of the Tax Code of the Russian Federation (Letter of the Ministry of Finance of Russia dated July 10, 2015 No. 03-03-06 / 39775).
An example of reflection in accounting and taxation of expenses for the modernization of fixed assets. The organization applies a general taxation system.
In June-August 2015, Alpha LLC modernized the equipment in a contracted manner. The cost of the work performed by the contractor amounted to 59,000 rubles, including VAT - 9,000 rubles. The act in the form No. OS-3 was signed in August 2015. The organization uses the accrual method and pays income tax on a quarterly basis. Accounting and tax data are the same. The organization does not apply the depreciation bonus. The organization does not perform operations not subject to VAT.
The initial cost of equipment for which it is taken into account is 300,000 rubles. The equipment belongs to the second depreciation group. Therefore, upon acceptance for accounting, a useful life of 3 years (36 months) was established. Depreciation is charged on a straight-line basis.
For accounting purposes, the annual depreciation rate is 33.3333 percent (1: 3 × 100%), the annual depreciation amount is 100,000 rubles. (300,000 rubles. × 33.3333%), the monthly depreciation amount is 8333 rubles / month. (100,000 rubles: 12 months).
For tax accounting purposes, the monthly depreciation rate for equipment is 2.7777 percent (1: 36 months × 100%), the monthly amount of depreciation is 8333 rubles / month. (300,000 rubles. × 2,7777%).
Since the modernization lasted less than 12 months, during the period of its implementation, the accountant accrued depreciation for the equipment.
The upgrade did not increase the useful life of the equipment. Therefore, for the purposes of accounting and tax accounting, the useful life of the modernized equipment was not revised. In accounting, depreciation on equipment was charged for 24 months. Therefore, for accounting purposes, the remaining useful life of a fixed asset after modernization is 1 year (36 months - 24 months).
During the period of equipment modernization, the Alpha accountant made the following records.
In June and July 2015:
Debit 26 Credit 02
- 8333 rub. - depreciation is calculated for the equipment being modernized.
In August 2015:
Debit 08 subaccount "Expenses for the modernization of fixed assets" Credit 60
- 50 000 rub. (59 000 rub. - 9000 rub.) - the cost of the contractor’s modernization of fixed assets was taken into account;
Debit 19 Credit 60
- 9000 rub. - VAT is taken into account from the cost of the contractor's work;
Debit 68 subaccount "Calculations for VAT" Credit 19
- 9000 rub. - VAT deductible;
Debit 60 Credit 51
- 59 000 rub. - paid for the work of the contractor;
Debit 26 Credit 02
- 8333 rub. - depreciation for modernized equipment was accrued;
Debit 01 Credit 08 subaccount "Expenses for the modernization of fixed assets"
- 50 000 rub. - the initial cost of equipment has been increased by the cost of work on its modernization.
The initial cost of equipment, taking into account the costs of modernization, amounted to 350,000 rubles. (300 000 rub. + 50 000 rub.). The residual value of the equipment, excluding these costs, is 100,008 rubles. (300 000 rubles - 8333 rubles × 24 months), and taking into account - 150 008 rubles. (100 008 rub. + 50 000 rub.).
For accounting purposes, the annual depreciation rate of equipment after modernization is 100 percent (1: 1 year × 100%), the annual depreciation amount is 150,008 rubles. (150,008 rubles × 100%), the monthly depreciation amount is 12,501 rubles / month. (150,008 rubles: 12 months).
In tax accounting, the monthly amount of depreciation after modernization amounted to:
350 000 rub. × 2.7777% \u003d 9722 rubles / month.
Since after modernization the monthly amount of depreciation for the purposes of accounting and tax accounting began to differ, the organization a temporary difference of 2779 rubles. (12 501 rubles / month - 9722 rubles / month), leading to the formation of a deferred tax asset.
From September 2015 to August 2016 (12 months), the accountant reflected the accrual of depreciation deductions by postings:
Debit 26 Credit 02
- 12 501 rub. - depreciation is accrued on the modernized equipment;
Debit 09 Credit 68 subaccount "Calculations for income tax”
- 556 rub. (2779 rub. × 20%) - a deferred tax asset is accrued from the difference between the monthly depreciation deductions for accounting and tax purposes.
In August 2016, the equipment was completely depreciated in accounting (350,000 rubles - 8333 rubles / month × 24 months - 12,501 rubles / month × 12 months). Therefore, since September 2016, the accountant has stopped accruing depreciation on it.
In tax accounting equipment is not depreciated in the amount of 33 344 rubles. (350 000 rubles - 8333 rubles / month × 24 months - 9722 rubles / month × 12 months). Therefore, in tax accounting, the accountant continued to accrue depreciation (letter of the Ministry of Finance of Russia dated March 2, 2006 No. 03-03-04 / 1/168).
From September to November 2016 (3 months) as the depreciation accrued, the Hermes accountant wrote off the deferred tax asset:
- 1944 rub. (9722 rub. × 20%) - the deferred tax asset is written off.
In December 2016, the amount of depreciation amounted to 4178 rubles. (33 344 rubles - 9722 rubles / month × 3 months). The write-off of the deferred asset was recorded by the accountant:
Debit 68 subaccount "Calculations for income tax" Credit 09
- 836 rub. (4178 rub. × 20%) - the deferred tax asset is written off.
Modernization of fixed assets. Features of accounting and tax accounting
The service life of an object may change if modernization of fixed assets is carried out. Features of accounting and tax accounting are examples.
During operation, fixed assets wear out morally and physically. The modernization of fixed assets is one of the ways to restore fixed assets. The modernization of fixed assets is the work, as a result of which the technological or official purpose of the facility has changed or the possibility of its work (use) with increased loads
Modernization of fixed assets can be performed:
- economic means (i.e., using the organization’s own forces);
- in a contractual way (i.e. with the involvement of third-party organizations, entrepreneurs or citizens).
Documentation of the modernization of fixed assets
The decision on the modernization of fixed assets must be issued by order of the head of the organization, which must indicate:
- reasons for modernization;
- dates of its holding;
- persons responsible for carrying out modernization.
If the modernization of fixed assets is carried out by third parties, then it is necessary to conclude a contract with the contractors. When transferring fixed assets to a contractor, draw up an act on the transfer and acceptance of fixed assets for modernization. It can be made in any form. If the fixed asset is lost (damaged) by the contractor, the signed act will allow the organization to demand compensation for losses. In the absence of such an act, it will be difficult to prove the transfer of fixed assets to the contractor.
When transferring the fixed assets for modernization to a special unit of the organization (for example, the repair service), an invoice for internal movement should be drawn up (for example, in the unified form No. OS-2). If during the modernization the location of the fixed asset does not change, no transfer documents need to be drawn up.
At the end of the modernization, an act is drawn up on the acceptance and delivery of the modernized fixed assets (for example, according to form No. OS-3). It is filled irrespective of whether the modernization was carried out in an economic or contractual way. Only in the first case, the organization draws up the form in one copy, and in the second - in two (for itself and for contractors). The act is signed by:
- members of the acceptance committee created in the organization;
- employees responsible for the modernization of the fixed asset (or representatives of the contractor);
- employees responsible for the preservation of fixed assets after modernization.
Modernization of fixed assets: features of accounting
The costs of modernization of fixed assets change (increase) their initial cost in accounting (paragraph 14 of PBU 6/01). The organization is required to keep records of fixed assets according to the degree of their use:
- in operation;
- in stock (reserve);
- on modernization, etc.
Accounting for fixed assets by the degree of use can be carried out with or without reflection on account 01 (03). So, with a long-term modernization, it is advisable to take into account fixed assets in a separate sub-account "Fixed assets for modernization". A similar operation may be reflected by the entry:
DEBIT 01 (03) subaccount »Fixed assets for modernization» CREDIT 01 (03) subaccount »Fixed assets in operation»
- transferred to the modernization of fixed assets.
When the retrofit of fixed assets is done make reverse wiring.
Cost accounting for the modernization of fixed assets
Costs for the modernization of fixed assets account on account 08 "Investments in non-current assets". In order to ensure the possibility of obtaining data on types of capital investments, it is advisable to open account 08 with the sub-account "Expenses for modernization". The modernization of fixed assets is reflected in accounting records:
DEBIT 08 subaccount »Expenses for modernization» CREDIT 10 (16, 23, 60, 68, 69, 70, 76 ...)
- expenses for modernization are taken into account.
Upon completion of the upgrade, the costs recorded in account 08 can be included in the initial cost of the fixed asset or accounted separately in account 01 (03). This is stated in paragraph 42.
When you include the costs of modernization in the initial cost of fixed assets, make the posting:
DEBIT 01 (03) LOAN 08 sub-account "Expenses for modernization"
- modernization of fixed assets was carried out and their initial cost was increased.
In this case, the costs of the modernization reflect in the primary documents for accounting of fixed assets. For example, in the inventory card accounting of fixed assets.
When separately accounting for the costs of modernization, write off to a separate subaccount to account 01 (03). For example, the sub-account "Expenses for the modernization of fixed assets":
DEBIT 01 (03) subaccount »Expenses for the modernization of fixed assets» CREDIT 08 subaccount »Costs for reconstruction»
- charged expenses for the modernization of fixed assets to account 01 (03).
In this case, for the amount of expenses incurred, open a separate inventory card.
Depreciation during the modernization of fixed assets
When carrying out modernization for a period of not more than 12 months, depreciate on the main asset. If the modernization of a fixed asset takes more than 12 months, suspend depreciation on it. In this case, resume depreciation after the end of the upgrade.
For accounting purposes, the legislation does not establish a specific moment for the termination and resumption of depreciation on fixed assets transferred for modernization for a period exceeding 12 months. Therefore, the month from which the depreciation for the accounting for such fixed assets is terminated and resumed, the organization must establish independently. In this case, possible options may be:
- depreciation is suspended from the 1st day of the month in which the fixed asset was transferred for modernization. And it resumes from the 1st of the month in which the modernization was completed;
- depreciation is suspended from the 1st day of the month following the month in which the fixed asset was transferred for modernization. And it resumes from the 1st of the month following the month in which the modernization was completed.
The chosen option of suspension and resumption of depreciation for accounting for fixed assets, upgraded for more than 12 months, reflect in the accounting policies of the organization for accounting purposes.
Tip
In the accounting policy for accounting purposes, fix the same procedure for the termination and resumption of depreciation on fixed assets transferred for modernization for a period of more than 12 months, as in tax accounting. In this case, temporary differences resulting in the formation of a deferred tax liability will not occur in the accounting of the organization.
Term of use of fixed assets after modernization
Modernization can lead to an increase in the useful life of fixed assets. In this case, for accounting purposes, the remaining useful life of the upgraded property, plant and equipment should be reviewed. This is done by the acceptance committee when accepting the fixed assets from the modernization:
- based on the period during which it is planned to use the fixed asset after modernization for managerial needs, for the production of products (performance of work, the provision of services) and other revenue generation;
- based on the period at the end of which the fixed asset is expected to be unsuitable for further use (i.e., physically worn out). This takes into account the mode (number of shifts) and the negative operating conditions of the fixed asset, as well as the system (frequency) of repairs.
The results of the revision of the useful life in connection with the modernization of the fixed asset, issue an order of the head.
Depreciation after modernization of a fixed asset
The procedure for calculating depreciation after the modernization of a fixed asset by accounting legislation is not defined. In paragraph 60 of the Guidelines, approved by order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n, only an example of calculating depreciation deductions using the linear method is given.
According to an example, with the linear method, the annual amount of depreciation of fixed assets after modernization is determined in the following order. After the modernization, calculate the annual depreciation rate of the fixed asset according to the formula:
Then calculate the annual depreciation amount. To do this, use the formula:
The depreciation amount to be charged monthly is 1/12 of the annual amount.
The organization has the right to apply this method of calculation, even if as a result of modernization the useful life of the fixed asset has not changed (remained the same). This is because paragraph 60 of the Guidelines, approved by Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n, does not contain conditions on the mandatory extension of the useful life as a result of modernization. This means that the organization can calculate depreciation on the basis of the residual value of the fixed asset (taking into account its increase by the sum of the costs of modernization) and the remaining useful life, regardless of whether this period was increased after modernization or not.
If the organization uses other methods of depreciation (the method of decreasing the balance, the method of writing off the value by the sum of the number of years of the useful life, the method of writing off the value in proportion to the volume of production (work)), then the annual amount of depreciation can be determined in the order
- the same order as shown in the example for the linear method;
- developed by the organization on its own.
Fix the applicable depreciation calculation method for fixed assets after modernization in the accounting policy of the organization for accounting purposes.
Example
ZAO Alpha is engaged in the repair of medical equipment. In April 2016, the organization modernized the production equipment put into operation in July 2013.
The initial cost of equipment is 300,000 rubles. The useful life according to accounting is 10 years. The depreciation method is linear. As a result of the modernization, the useful life of the facility increased by 1 year.
Before the modernization of the fixed asset, the annual depreciation rate was 10 percent ((1: 10 years) × 100%). The annual depreciation amount was:
300 000 rub. × 10% \u003d 30,000 rubles.
The monthly depreciation was equal to:
30 000 rub. : 12 months \u003d 2500 rub.
59,000 rubles were spent on equipment modernization. Modernization lasted less than 12 months, so depreciation was not suspended. At the time of modernization, the actual equipment life was 33 months. Its residual value according to accounting is equal to:
300 000 rub. - (33 months × 2500 rubles / month) \u003d 217 500 rubles.
After modernization, the useful life of the fixed asset was increased by 1 year and amounted to 8.25 years (7.25 + 1).
The annual depreciation rate of equipment after modernization was:
(1: 8.25 years) × 100% \u003d 12.1212%
The annual depreciation amount is equal to:
(217 500 rubles + 59 000 rubles) × 12.1212% \u003d 33 515 rubles.
The monthly depreciation amount is:
33 515 rub. : 12 months \u003d 2793 rub.
Modernization of fixed assets: features of tax accounting
Do not take into account the costs of modernization of non-production facilities in tax accounting. This is due to the fact that all expenses that reduce the tax base must be economically justified (Clause 1, Article 252 of the Tax Code of the Russian Federation). That is, associated with the production activities of the organization.
For industrial property, the expenses for the modernization of fixed assets during the period of its holding do not reduce the tax base for income tax. After the modernization is completed, include the costs of its implementation in the initial cost of the fixed asset (when applying the linear method) or in the total balance of the depreciation group (subgroup) (when applying the non-linear method). Then repay these expenses through depreciation.
Example
In June-August 2016, ZAO Alpha modernized the equipment in a contractual manner. The cost of the work performed by the contractor amounted to 59,000 rubles, including VAT - 9,000 rubles. The act in the form No. OS-3 was signed in August 2016. The organization uses the accrual method and pays income tax on a quarterly basis. Accounting and tax data are the same. The organization does not apply the depreciation bonus. The organization does not perform operations not subject to VAT.
The initial cost of equipment for which it is taken into account is 300,000 rubles. The equipment belongs to the second depreciation group. Therefore, upon acceptance for accounting, a useful life of 3 years (36 months) was established. Depreciation is charged on a straight-line basis.
For accounting purposes, the annual depreciation rate is 33.3333 percent (1: 3 × 100%), the annual depreciation amount is 100,000 rubles. (300,000 rubles. × 33.3333%), the monthly depreciation amount is 8333 rubles / month. (100,000 rubles: 12 months).
For tax accounting purposes, the monthly depreciation rate for equipment is 2.7777 percent (1: 36 months × 100%), the monthly amount of depreciation is 8333 rubles / month. (300,000 rubles. × 2,7777%).
Since the modernization lasted less than 12 months, during the period of its implementation, the accountant accrued depreciation for the equipment.
The modernization of fixed assets did not lead to an increase in the useful life of the equipment. Therefore, for the purposes of accounting and tax accounting, the useful life of the modernized equipment was not revised. In accounting, depreciation on equipment was charged for 24 months. Therefore, for accounting purposes, the remaining useful life of a fixed asset after modernization is 1 year (36 months - 24 months).
During the period of equipment modernization, the Alpha accountant made the following records.
in June and July 2016:
DEBIT 26 LOAN 02
- 8333 rub. - depreciation is calculated for the equipment being modernized.
in August 2016:
DEBIT 08 subaccount »Expenses for the modernization of fixed assets» CREDIT 60
- 50 000 rub. (59 000 rub. - 9000 rub.) - the cost of the contractor's work on the modernization of fixed assets was taken into account;
DEBIT 19 LOAN 60
- 9000 rub. - VAT is included in the cost of the contractor;
DEBIT 68 subaccount »Calculations for VAT» CREDIT 19
- 9000 rub. - VAT deductible;
DEBIT 60 LOAN 51
- 59 000 rub. - paid for the work of the contractor;
DEBIT 26 LOAN 02
- 8333 rub. - depreciation for modernized equipment was accrued;
DEBIT 01 LOAN 08 subaccount "Expenses for the modernization of fixed assets"
- 50 000 rub. - the initial cost of equipment has been increased by the cost of work on its modernization.
The initial cost of the equipment, taking into account the costs of the modernization, was:
300,000 + 50,000 \u003d 350,000 rubles.
The residual value of equipment excluding these costs is equal to:
300 000 rub. - (8333 rub. × 24 months) \u003d 100 008 rub.
The residual value of the equipment, taking into account the costs of modernization, is equal to:
100 008 + 50 000 \u003d 150 008 rubles.
For accounting purposes, the annual depreciation rate of equipment after modernization is 100 percent (1: 1 year × 100%), the annual depreciation amount is 150,008 rubles. (150,008 rubles × 100%), the monthly depreciation amount is 12,501 rubles / month. (150,008 rubles: 12 months).
In tax accounting, the monthly amount of depreciation after modernization amounted to:
350 000 rub. × 2.7777% \u003d 9722 rubles / month.
Since after modernization the monthly amount of depreciation for the purposes of accounting and tax accounting began to differ, the organization had a temporary difference leading to the formation of a deferred tax asset. Its amount is equal to:
12 501 rubles / month - 9722 rubles / month. \u003d 2779 rub.
From September 2016 to August 2017 (12 months), the accrual of depreciation deductions the accountant reflects the postings:
DEBIT 26 LOAN 02
- 12 501 rub. - depreciation is accrued on the modernized equipment;
DEBIT 09 LOAN 68 subaccount "Calculations for income tax"
- 556 rub. (2779 rub. × 20%) - a deferred tax asset is accrued from the difference between the monthly depreciation deductions for accounting and tax purposes.
In August 2017, in accounting, the equipment was fully depreciated (350,000 rubles - 8,333 rubles / month × 24 months - 12,501 rubles / month × 12 months). Therefore, from September 2017, the accountant has stopped accruing depreciation on it.
In tax accounting equipment is not depreciated in the amount of 33 344 rubles. (350 000 rubles - 8333 rubles / month × 24 months - 9722 rubles / month × 12 months). Therefore, in tax accounting, the accountant continued to accrue depreciation.
From September to November 2016 (3 months) as the depreciation accrued, the Hermes accountant wrote off the deferred tax asset:
- 1944 rub. (9722 rub. × 20%) - the deferred tax asset is written off.
In December 2016, the amount of depreciation amounted to 4178 rubles. (33 344 rubles - 9722 rubles / month × 3 months). The write-off of the deferred asset was recorded by the accountant:
DEBIT 68 subaccount »Profit tax calculations» CREDIT 09
- 836 rub. (4178 rub. × 20%) - the deferred tax asset is written off.
If the modernization of fixed assets is carried out in a period not exceeding 12 months, then continue to accrue depreciation for the fixed asset. If the modernization of fixed assets is carried out for more than 12 months, then suspend depreciation on them. In this case, stop calculating depreciation from the 1st of the month following the month in which the fixed asset was transferred for modernization. Resume depreciation from the month following the end of the upgrade.
After modernization (regardless of the period of its implementation), the useful life of the fixed asset can be increased. This is possible if, after modernization, the characteristics of the fixed asset have changed so that it will allow to operate it longer than the established period. At the same time, it is possible to increase the useful life within the amortization group to which the fixed asset belongs. That is, if the maximum useful life was initially set, it is impossible to increase it after the modernization of the fixed asset. Such rules are established in Article 258 of the Tax Code of the Russian Federation.
Set the new useful life of the modernized fixed asset by order of the head drawn up in any form.