Evgeny Malyar

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• How to write off fixed assets from the balance
• Features of write-offs in budgetary structures
• General logic of actions
• Actions of the accountant
• write-off order
• Write-off reasons
• Act on the write-off of fixed assets
• Write-off act form tables
• Fixed asset write-off protocol

All fixed assets sooner or later fall into disrepair. Machine tools, equipment, and capital buildings themselves are dilapidated and can no longer be used for their intended purpose. Ultimately, the fate of these non-current funds is to be written off the balance sheet. How to do this correctly will be discussed in this article.

How to write off fixed assets from the balance

Fixed assets include expensive means of production that serve for more than a year. They are debited from the balance sheet of the enterprise for the following possible reasons:

• The funds are obsolete (physically or morally), that is, they have served their useful life;
• They were sold to a third party;
• They were exchanged for something useful, for which an exchange agreement was concluded;
• Presented to some legal or natural person;
• Equipment or other property is hopelessly out of order as a result of an accident;
• It wore out prematurely;
• It was stolen (more often, accountants and lawyers use the word “kidnapped”, however, this does not change the essence).

Each of these situations requires documenting, providing for the fixation on paper of the reasons, and the reflection in the financial statements of the relevant business transactions.

According to clause 28 of the Accounting Rules (PBU 6/01), fixed assets are subject to write-off, the use of which cannot bring financial benefits to the enterprise.

Features of write-offs in budgetary structures

AT budget institutions the procedure for writing off obsolete, destroyed or stolen non-current assets is somewhat different from the norms in force for commercial structures. This is due to the fact that the owner of fixed assets in this case is the state, and therefore, in many cases, permission from a higher authority is required for the right to dispose of especially valuable property on the balance sheet (the list of positions is given in Law No. 7-FZ, article 9.2, paragraph 11) . There are objects that managers write off budget organizations may themselves, if they are not contributed to the authorized capital of other firms. General principle withdrawal from the balance, however, remains the same.

General logic of actions

In a situation where the write-off of the property that has become unusable on the balance sheet becomes an urgent task, the issue of execution is decided by the head of the enterprise, who issues an order to create a liquidation commission.

In turn, the commission, following this order, draws up an act. About how these processes should go, the story is ahead, but it should be understood that it is they that give the basis for the accounting department to make postings. Everything else is a matter of technology.

The Chart of Accounts did not change in 2019, and there is reason to believe that it will remain unchanged in the near future. The conclusion of the commission consists in ascertaining the actual state of the property, assessing the feasibility of its further use and the validity of liquidation. In some cases (when it is difficult or impossible to come to some conclusions on your own), third-party experts are invited.

Fixed assets are written off in accordance with the form established for each specific case, approved by the Ministry of Finance. If you have difficulty filling out the forms, you can use a sample.

Download Sample

Actions of the accountant

Depending on the reason for which the property needs to be removed from the balance, the correspondent accounts involved in this operation change. The most common types of postings are discussed below.

The property is partially or completely worn out

The simplest case is when the object “died a natural death”, that is, it completely exhausted its service life, and after that it safely failed. In this case, it has no value in terms of value, as it is fully depreciated. After the act is drawn up and signed by the members of the commission, and then endorsed by the head, the accounting department can deregister the asset without disturbing the balance, making an entry between sub-account 01.1 (at the original cost) and 01.2 (full depreciation amount).

With premature moral or physical wear and tear, the task becomes more difficult. The balance sheet asset lists the full amount of the initial costs for the acquisition of the object (subaccount 01.1), on the other hand, depreciation is incomplete, that is, the object with a residual value is subject to write-off, which is very simple to determine (you need to subtract the depreciation amount from the initial cost). The wiring will look like this:

On loan c. 01–1, the full value of the liquidated asset is debited to debit 01.2. Then depreciation is written off from the account. 02. This is followed by the posting of depreciation amounts (Dt 02 - Kt 01.1). As a result, the residual value of the property (the difference between the debit and credit of account 01.2) enters account 01.2. The “underdepreciated” part is accounted for as expenses and written off to account 91.2 (Dt 91.2 - Kt 01.2). The account is closed.

Asset sold

The basis for the write-off are two documents - the act of the liquidation commission and the contract of sale. The wiring is as follows:

• Dt01 - Kt01.1 - the initial cost of the property is entered;
• Dt02 - Kt01 "Disposal" - for the amount of depreciation;
• Dt91.2 - Kt01 - for the residual value of the object of sale;
• Dt62 - Kt91.1 - revenue (contract amount);
• Dt91.2 - Kt68.2 - VAT is charged.

The property was transferred to the authorized capital of another company (share contribution)

Property that is of no value to one owner may be useful to another. If the written-off asset acquires the quality of a share contribution, the accounting department uses account 58. Postings:

• Dt01 - Kt01.1 - for the initial cost;
• Dt02 - Kt01 - for accumulated depreciation;
• Dt91.2 - Kt01 - for the residual value;
• Dt58 - Kt01 - the amount of the contribution to the authorized capital of the enterprise receiving the asset.

VAT is not charged, since a share contribution is not a sale.

The object was transferred free of charge (donated)

Yes, it can be, but it is important that the act of donation is not based on a hidden sale (for cash), which is a violation of the law. The write-off procedure is approximately the same as for the sale or depreciation (VAT is charged based on the market price of the asset), with the difference that Dt99 - Kt91.9 is posted for the amount of the financial result (actually sacrificed loss).

Partial liquidation

Most often this situation occurs in relation to real estate. It is difficult to write off anything else incompletely, but some of the buildings, for example, inside the plant, can really be demolished. At the same time, the main part of the workshops remains and functions, but the total value of assets and the amount of their depreciation deductions are reduced. Operations are reflected in account 91.

write-off order

The procedure for writing off fixed assets does not provide for an order as such. The management, issuing such a document, expresses its intention to liquidate any expensive object “hanging” on the balance sheet, and at the same time appoints executors, which is probably the most important part of the text of such an order. The basis for the actions of the accounting department is not an order, but an agreement (if we are talking about exchange, donation, sale or any other method of alienation) or an act on the complete unsuitability of the object for operation.

However, in many firms there is a practice according to which the initiation of a write-off is expressed by an order. There is no strict approved form of it (unlike an act), but an approximate sample may look like this:

sample order

The document briefly substantiates the decision to liquidate the named object, most often by the economic inexpediency of further operation and (or) repair, as well as:

• A commission is appointed, which, as a rule, includes one of the leaders of the enterprise (deputy director, chief engineer), head of the department for whose needs the asset was used, a representative of the accounting department (often the chief accountant), etc.;
• The goal is formulated;
• The chairman of the commission is responsible for its work.

The order is signed by all the persons mentioned in it, for which their names with “shelves” are printed at the bottom of the sheet.

Write-off reasons

The process of writing off fixed assets in any enterprise is inevitable. Not only does equipment naturally age, new types of it appear, but accidents and natural disasters occur, as a result of which property, movable and immovable, becomes unusable. Numerous examples of how funds fail prematurely and unexpectedly can take up more than one page of small text. It is not uncommon for cars that are still brand new to crash to such an extent that there is nothing to repair, and it is good if people do not suffer. Due to power surges or other violations of normal operating conditions, electronic and electrical equipment deteriorates. There is also such a phenomenon as moral obsolescence, which often happens suddenly, when equipment that has not yet worn out physically turns out to be unnecessary or intended for the production of more unclaimed goods.

The most common and expedient reason for writing off fixed assets is the impossibility of their further commercial use, and the costs of restoration are unreasonably high.

In recent years, new terms have appeared denoting previously unaccounted for reasons for the early withdrawal of equipment:

environmental aging. It is understood as non-compliance with the new environmental requirements adopted at the legislative level. If, for example, treatment plant enterprises do not meet the established standards, they should be changed, and the old ones should be written off along with the costs of dismantling;

social wear. In this case, the reason for the write-off may be the adoption of legislative acts that reflect more stringent requirements for industrial relations, and, as a result, fixed assets.

Act on the write-off of fixed assets

The requirements for the execution of acts of write-off of fixed assets are strict. In the forms approved by the State Statistics Committee of the Russian Federation (Resolution 7 of January 21, 2003), additions are allowed (if necessary), but any editing is possible with the written permission of the head of the organization and must be justified, but any columns cannot be excluded.

The same type of OS-4 form is the most versatile and therefore is used more often than others. It can be easily downloaded for free on our website:

Download form OS-4

This form assumes the possibility of recycling suitable parts, mechanisms or assemblies and serves as the basis for their posting to the warehouse, as well as further useful use for production purposes or sale.

The form of the act OS-4 is intended for writing off a wide range of assets, but another one is used to remove vehicles from the balance sheet, OS-4a (or OS-4b for several objects) which is performed in three copies (one is designed to remove the car from the state register in the traffic police) .

If the property is alienated due to a gratuitous transfer to another owner or is sold, then the form of the act OS-1 (acceptance-transfer) should be applied.

In any case, the document contains a number of general mandatory items:

• Reasons for the liquidation of property;
• Description of the technical condition of the object, identified as a result of the examination carried out by the commission;
• Possibility and feasibility of restoration work;
• The degree of suitability of workable component assemblies, parts or parts of the object and their price in monetary terms;
• Reasonable reasoning for decommissioning of fixed assets;
• Defective act in case of failure due to natural wear and tear with a list of all existing defects.

In case of obsolescence, a defective act is not needed for the OS-4 form, and an order from the head is attached instead.

Write-off act form tables

The main duty of the members of the liquidation commission is to fill in the three tables contained in the forms of the OS.

• The first of them is intended for entering the information contained in the acceptance certificate, on the basis of which the equipment was used in production during the period preceding the write-off, general information about it (service life and accrued depreciation);
• The second table should contain information about the property being written off, the presence of precious metals in its details and other information from acts OS-1, OS-1a and OS-1b.
• The third part fixes the costs of disassembling and disposing of the object in order to extract useful components, as well as their cost.

With the exception of the OS-4b form, all the rest are made in two copies, one of which is transferred to the accountant and serves as the basis for postings, and the second is handed over to the employee appointed responsible for the safety of decommissioned fixed assets, who delivers the recycled products to the warehouse.

Fixed asset write-off protocol

The process of writing off objects related to fixed assets (now they are more often called non-current assets) is crowned by a meeting of the liquidation commission. Its approximate composition has already been listed, and it remains only to add that it can be collected separately in each such case or be permanent, but in any case it includes representatives of management, accounting and production units.

The result of the meeting of the commission is documented in a protocol with a package of documents attached to it, which are drawn up in any form. At the same time, the protocol must comply with several mandatory conditions specified in Decree of the Government of the Russian Federation No. 834 of October 14, 2010 and later annexes to it, namely:

• The presence of a quorum (at least 2/3 of the composition of the commission);
• The decision was made by a simple majority of the committee members present.

A standard sample of the protocol of the commission for the write-off of fixed assets in an expanded form contains:

• Full name of the enterprise or organization;
• The word "Protocol";
• Number and date of compilation;
• Location of the meeting (usually the name of the locality is sufficient);
• The composition of the commission with an indication of those present;
• Agenda (that is, the write-off of which particular property is being discussed);
• Information about the debate (“listened”);
• Outcome ("decided");
• Voting result;
• Signatures of members of the commission.

After that, if an agreement is reached, the write-off process can be considered successfully completed.

Any fixed asset wears out sooner or later. Moreover, it is aging not only physically, but also morally. If this happens, the worn-out property is written off. The accountant should be aware of the features of accounting and tax accounting for such an operation.

The main tool is outdated

The aging of a fixed asset is determined either by physical or obsolescence.

Physical wear is understood as a change in the properties of machines, equipment and other equipment. This leads to a decrease in the quality and quantity of products, etc. As a rule, the older the fixed asset becomes, the more often it has to be repaired. Therefore, there may come a time when repairing an old machine becomes economically unprofitable.

Obsolescence is usually associated with scientific and technological progress. Technologies change, new equipment appears that can perform certain operations better and faster. Thus, the company comes to the conclusion that the fixed asset does not meet modern requirements, that is, it is obsolete.

How to write off fixed assets

To write off old equipment, machines, etc., the head of the company appoints a commission by his order. Such a rule is indicated in paragraph 77 of the manual on accounting fixed assets, which was approved by the order of the Ministry of Finance dated October 13, 2003 No. 91n. The order might look like this:

CJSC "Omega" On the establishment of the commission to write off fixed assets I ORDER: To write off a woodworking machine from the balance sheet, create a commission consisting of: - chairman of the commission: director A.P. Kirillov; – members of the commission: chief accountant G.A. Vasiliev; technical director R.B. Novikov. 1. Assign the following duties to the commission: – inspection of a woodworking machine to be written off (using the necessary technical documentation and accounting data); - establishing the reasons for writing off the woodworking machine; - identification of persons through whose fault the premature disposal of the woodworking machine occurs; - establishing the possibility of using individual parts and materials capitalized as a result of the dismantling of a woodworking machine, and their assessment based on the current market value; - drawing up an act to write off a woodworking machine. 2. The act for the write-off of the woodworking machine, approved by the head of the organization, is subject to transfer to the accounting department of Omega CJSC. Director Kirillov A.P. Kirillov

The decision of the commission to write off the fixed asset must be formalized by an act approved by the head of the company. For this, form No. OS-4 is provided. When decommissioning a vehicle, form No. OS-4a is filled out. In the event of a write-off of a group of fixed assets at once - form No. OS-4b. These forms were approved by the Resolution of the State Statistics Committee of January 21, 2003 No. 7.

Note that the forms record the name, quantity, as well as the market value of the material assets that the company capitalized as a result of the dismantling of the fixed asset.

Based on the act of decommissioning the equipment, the accountant makes an entry in the inventory card about its disposal. Recall that the card for retired fixed assets must be kept for at least five years (paragraph 80 of the manual on accounting for fixed assets).

Accounting

Expenses associated with the disposal and other write-off of fixed assets are included in operating expenses (clause 11 PBU 10/99 "Expenses of the organization"). These include the residual value of machinery, equipment, wage workers who carry out their dismantling, as well as the unified social tax charged on this salary.

In some cases, firms use the services of a third-party organization to carry out demolition work. Therefore, the fee for these services should also be included in the operating expenses that are associated with the write-off of the fixed asset.

Quite often, liquidating the old equipment, the firm receives various spare parts and materials. The commission evaluates them at market value, and the accountant includes such income as operating income (paragraph 79 of the manual on accounting for fixed assets).

When writing off the balance sheet of an old machine or other equipment, the amount of accrued depreciation is first written off: Debit 02 Credit 01

- written off the amount of accrued depreciation on the retired fixed asset.

Thus, on account 01 "Fixed assets" the residual value of the object to be disposed of will be formed. This amount must be debited to account 91 “Other income and expenses”: Debit 91-2 Credit 01

- written off the residual value of the retired fixed asset.

The debit of account 91 “Other income” also records the expenses that are associated with the dismantling of machinery or equipment.

The financial result from the write-off of fixed assets (as a rule, a loss) must be reflected in account 99 “Profit and Loss”.

Note that in order to account for the write-off of machines and equipment, an accountant can open a sub-account “Retirement of fixed assets” to account 01 “Fixed assets”. Consider the accounting entries that need to be made in this case using an example.

Example

CJSC Gamma decided to write off the lathe due to its physical wear and tear. The initial cost of the machine is 80,000 rubles, the amount of accrued depreciation is 75,000 rubles. The dismantling costs (wages of workers, unified social tax, materials, etc.) amounted to 6,000 rubles.

As a result of the dismantling of the lathe, the company capitalized spare parts. Their market value is 2000 rubles.

At the end of the month, the accountant determined the financial result from the write-off of the fixed asset. The following entries are made in Gamma's accounting records: Debit 01 subaccount "Retirement of fixed assets" Credit 01

- 80,000 rubles. - written off the initial cost of the lathe; Debit 02 Credit 01 sub-account "Retirement of fixed assets"

- 75,000 rubles. - written off the amount of accrued depreciation; Debit 91-2 Credit 01 sub-account "Disposal of fixed assets"

- 5000 rubles. (80,000 - 75,000) - the residual value of the departing lathe;

Debit 91-2 Credit 10 (69, 70…)

- 6000 rubles. - written off the costs associated with the dismantling of the lathe; Debit 10 Credit 91-1

- 2000 rubles. – spare parts received during the dismantling of the lathe were credited; Debit 99 Credit 91-9

- 9000 rubles. (5000 + 6000 - 2000) - reflected the loss from the write-off of the lathe.

tax expenses

When writing off fixed assets, taxable income will be reduced:

– expenses for the liquidation of fixed assets (for example, dismantling works);

– the amount of undercharged depreciation in accordance with the established useful life (that is, the tax residual value of the fixed asset).

Such expenses are included in non-operating expenses. This is stated in subparagraph 8 of paragraph 1 of Article 265 of the Tax Code.

In some cases, firms write off fixed assets that are no longer included in tax records. And in accounting, depreciation still continues to accrue on them. Then you need to show the difference between the accounting and tax accounting. That is, from the amount of "tax" depreciation, you need to subtract the amount of "accounting". This will constant difference. Multiplying this value by the income tax rate, the firm will receive the amount of the permanent tax liability.

In such a case, another question may arise. Is it possible to take into account the costs of dismantling when calculating income tax, if the fixed asset is no longer listed in tax accounting? In our opinion, it is possible. The fact is that the conditions for the recognition of tax expenses are given in paragraph 1 of Article 252 of the Tax Code. That is, they must be documented and economically justified.

Such expenses can be confirmed, for example, by an order to create a commission for the write-off of fixed assets, an act for their write-off.

The cost of dismantling can be economically justified, for example, by the fact that a new one will be installed in place of an old machine that no longer meets certain requirements. That is, such a replacement is needed by the company to ensure production activities.

Please note: if during the dismantling of a fixed asset, the company capitalized spare parts or materials, then they are included in non-operating income (clause 13 of article 250 of the Tax Code). Moreover, their value should correspond to the market. This follows from paragraph 5 of Article 274 of the Tax Code.

Should input VAT be recovered?

Tax officials believe that the amount of input VAT, which falls on the residual value of written off fixed assets, firms are required to recover. This is evidenced by numerous litigations. Officials explain their position by the fact that decommissioned equipment is no longer used in activities subject to VAT (subclause 1 clause 2 article 171 of the Tax Code).

However, courts generally do not support this view. The fact is that the Tax Code does not contain a requirement to restore input VAT on fixed assets written off the balance sheet before their full depreciation. Therefore, firms often win litigation. Examples of this are cases that have been considered by federal arbitration courts:

At the same time, it should be borne in mind that sometimes luck also accompanies the tax authorities. For example, arbitrators of the Federal Arbitration Court of the Volga District took their side (decree of July 28, 2003 No. A 55-54 / 03-34). They noted that since the decommissioned fixed assets will no longer be used in activities subject to VAT, it is necessary to restore part of the tax attributable to their residual value.

Thus, before deciding the issue of restoring VAT on decommissioned machines, equipment, etc., we recommend that you familiarize yourself with the judicial practice that has developed in your region.

T.A. Averina, expert of AG "RADA

One of the workshops of the enterprise no longer uses production equipment for its intended purpose. It will not work to sell the equipment, because. it is morally obsolete. Its renewal is not cost-effective. There is only one way out - write-off and sending for scrap, with the preliminary withdrawal of useful parts. It is necessary to figure out how such an operation should be designated in accounting and reporting.

What to take into account?

1. Order of the Ministry of Finance No. 186n “On making adjustments to legal regulations on accounting”.

3. RAS 6/01 "Accounting for fixed assets".

4. Rule of conduct financial statements and accounting in Russia, approved by order of the Ministry of Finance No. 34n.

5. Instructions for the use of the Chart of Accounts in the accounting of financial and economic activities of institutions, approved by order of the Ministry of Finance No. 94n.

6. Documentation IAS 16 Essential Information.

It should be noted that until 2011 there were no questions about how to write off fixed assets, the use of which is no longer possible. All the details of the procedure were spelled out in the regulatory documents (edition of the order of the Ministry No. 34n).

But order No. 186n was issued, which completely canceled the established procedure for writing off fixed assets. In return, officials did not offer anything.

What was before?

The procedure for writing off fixed assets was enshrined in the Guidelines, in paragraph No. 84. There it was recommended to use the account "Retirement of fixed assets" to another account "Fixed assets". In addition, a separate detailed reflection of income and expenses from the disposal of funds in the account “Other expenses and income” was provided:

• The residual value of the objects was written off from the credit of the account “Disposal of fixed assets” to the account “Fixed assets” to the debit of the account “Other expenses and incomes”;
• The value of material assets received from dismantling at the price of use or the total amount of profit from their sale was taken into account in the credit of the account “Other income and expenses”;
• Expenses related to the disposal of fixed assets were taken in the debit of the “Other income” account. Previously, they could be collected on the account "Auxiliary production No. 23".

Another important addition from paragraph No. 84: the process of disposal of fixed assets was completed by posting Dt 91-2 Kt to the account “Disposal of fixed assets”. This means that the fixed assets in the balance sheet should have been “hanging” until the moment when all procedures for the liquidation of the object end, i.e. until all fields of the act of forms OS-4, OS-4a or OS-4b have been filled. These procedures could go on for several months. The organization all this time was obliged to pay property taxes.

It's important to know

Starting from the autumn of 2011, VAT, which is presented to contractors on the cost of liquidation of fixed assets, is deductible. There is a direct reference to this in Art. No. 171 of the Tax Code of the Russian Federation (edition of the Federal Law No. 245-FZ of July 19, 2011).

Example 1

The management of Firm A decided on July 20, 2010 to stop using the old lathes. It is planned to put new equipment in their place. In order to liquidate the objects, a commission was created, which from 20.07.2010 began to identify valuable materials and spare parts in the equipment of machine tools and estimate future costs for dismantling and transporting parts. In other words, already on July 20, filling out the OS-4 act for writing off machine tools began.

The machines were purchased before 2001, so there is no need to recover VAT. The initial cost, taking into account the revaluation, is 4,000,000 rubles. The amount of depreciation as of July 20, 2010 (including revaluations) amounted to 3,200,000 rubles.

Company A entered into a contract with Company B, which was supposed to dismantle the machines, leaving the necessary parts to the owner, and transfer the scrap metal to Company C.

The total cost of the left materials and spare parts amounted to 600,000 rubles. The materials were transferred to the warehouse of Firm A on October 15, 2010. With Firm B, Firm A signed an interim act on the performance of work in the amount of 120,000 rubles + VAT 21,600 rubles.

Company B weighed the scrap metal and paid Company A 360,000 rubles (no VAT is required when selling scrap). The invoice for scrap acceptance was signed on November 20, 2010.

The cost of works by Firm B is 400,000 rubles. + tax 72,000 rubles. Firm A and Firm B signed the final act on the work performed on November 30, 2010.

To simplify the example, let's classify Firm A as a small business, i.e. it does not apply PBU 18/02.

Firm A made the following entries:

Dt 62 Kt 91-1 360,000 rubles - proceeds from the sale of scrap metal;

Dt 91-2 Kt 01 sub-account "Disposal of fixed assets" 800,000 rubles write-off of the residual value of machines.

In the balance sheet of Firm 1 for the first quarter of 2010, it reflects the residual value of fixed assets of 800,000 rubles. The statement of income and expenses under the item "Other expenses and income" reflects the amount of 1,320,000 rubles (600,000 + 360,000 + 360,000), and under the item "Other expenses" - 1,560,000 rubles (360,000 + 400,000 + 800,000).

Now what?

After Order No. 186n was issued, clause No. 84 lost its force. In addition, from paragraphs No. 54 and No. 79 of the Regulations and Methodological Instructions, the requirement was removed that the material value received during the dismantling of fixed assets is taken into account with the reflection of other income.

However, the officials noted that account 10 must be debited “at the time the OS object is debited” (guidelines, paragraph 79).

As a result, there was confusion in the principles of accounting.

The decision on the procedure for reflecting expenses and income can be found in international financial reporting standards, as provided for in clause 7 of PBU 1/2008 "Accounting Policy". Financial results from the write-off of fixed assets in IFRS statements are reflected in the statement of losses and profits in a collapsed manner. In other words, the difference between the proceeds from disposal, if any, and the book value of the item is determined. A negative difference is an expense, a positive difference is an income. The same rules are provided for in the draft new PBU regarding accounting for fixed assets.

It turns out that since 2011, with write-off of fixed assets:

• The expenses and income associated with the write-off should be reflected in one amount and minimized;
• You can not use the account "Retirement of fixed assets" to account 01.

But after making all the adjustments to the Instructions, the following phrase to the Chart of Accounts remained: “At the end of the disposal process, the residual value of the objects should be debited from account 01 to account 91.”

Here you need to add a calculation that account 10 must be debited on the date of debiting the fixed asset (from the Regulations and Guidelines, as well as the conclusion about the collapsed display of expenses and income).

It turns out that the residual value of fixed assets can be written off from account 01 only after liquidation operations are completed.

Is write-off allowed before the end of liquidation?

In reality, a firm may write off fixed assets without waiting for the end of the liquidation.

The publication of Order No. 186n is a new attempt to bring domestic accounting and IFRS closer together. But due to the quote in the Instruction, the requirement of paragraph 29 of PBU 6/01 is still not met. Where it is said that the cost of an object that is being liquidated or cannot generate income in the future is subject to write-off in accounting. This requirement is taken from IFRS. In particular, paragraph 67 of IAS 16 states: when no economic benefits are expected from the disposal or use of fixed assets, recognition book value objects is terminated.

According to IFRS and PBU 6/01, when an object that is subject to liquidation is no longer used, it is not reflected in the list of fixed assets. This asset must be reclassified into another. For example, the article “Non-current assets in the disposal procedure” may apply. And such an asset should be displayed already in the "Current assets" section, if the disposal is not delayed for a period of more than 12 months. In fact, the instruction does not allow this rule to be followed.

The firm has two options:

• Violation of paragraph 29 of PBU 6/01, but fulfilling the requirements of the Instructions for the Plan (as a result - overpayment of property tax). Write-off of fixed assets upon completion of all procedures;
• Following PBU 6/01, but violating the requirements of the Instruction (cessation of payment of property tax). In other words, write off fixed assets as soon as the object is no longer used.

Write-off of fixed assets after liquidation. Under this option, if the object is not used before the reporting date, and some liquidation operations occur after the reporting date, the residual value of the object is entered in the general balance sheet at the reporting date. In other words, the balance sheet displays an object of fixed assets that does not bring economic benefits. As a result, reporting users are misled.

In addition, the firm pays property tax, although it no longer accrues depreciation in tax and accounting records.

Example 2

Assume that all operations were carried out in 2012. Simultaneously, Firm A decided not to risk property taxes. The accountant decided to use account 23 "Auxiliary production" (as before) and account 98 "Deferred income".

Firm A's entries would be as follows:

Dt 01 Kt 01 sub-account "Disposal of fixed assets" 4,000,000 rubles - the initial cost of machines was written off;

Dt 02 Kt 01 sub-account "Disposal of fixed assets" 3,200,000 rubles - write-off of accrued depreciation.

Dt 10-5 Kt 91-1 600,000 rubles - spare parts received;

Dt 23 Kt 60,120,000 rubles - work performed by Firm B;

Dt 19 Kt 21,600 rubles - VAT accounting for work.

Dt 10-6 Kt 91-1 360,000 rubles - accounting for scrap metal from the dismantling of machine tools;

Dt 91-2 Kt 10-6 360,000 rubles - write-off of the cost of scrap metal.

Dt 23 Kt 60,280,000 rubles (400,000 - 120,000) - work of Firm B;

Dt 19 Kt 60 50,400 rubles (72,000 - 21,600) - VAT accounting for the work of Firm B;

Dt 91-2 Kt 23,400,000 rubles - a reflection of the expense for the work of Firm B;

Dt 68 Kt 73,200 rubles - acceptance for VAT deduction;

Dt 98 Kt 01 account “Disposal of fixed assets” 560,000 rubles (300,000 + 180,000 - 200,000) - part of the residual value of machines is written off (account 98 is closed);

Dt 91-2 Kt 01 sub-account "Disposal of fixed assets" 240,000 rubles (800,000 - 560,000) - writing off the other part of the residual value, determining the loss from disposal.

The balance sheet for the 1st quarter of the year displays the residual value of fixed assets of 800,000 rubles. In the statement of losses and profits under the item "Other expenses" the amount of 600,000 rubles (240,000 + 360,000) is reflected.

The object is written off immediately. So, the company can write off the residual value of fixed assets from account 01 at the moment when the objects cease to be used, without waiting for the end of the liquidation procedures.

Take advantage of practical

The decision to write off fixed assets immediately, as soon as they cease to be used in the activities of the company, is important to issue an organizational and administrative document. For example, by order of management.

For example, objects are not used before the balance sheet date, and some disposal operations occur after it. In this case, the residual value of the object will not be provided for on the balance sheet at the reporting date. This option is as close as possible to the IAS 16 standards, and, by and large, the reporting will be more reliable. In addition, the company can save on property taxes by stopping them from paying much earlier. The account "Disposal of fixed assets" is not used with this option.

Example 3

Firm A does not plan to pay tax and wants to write off fixed assets immediately. The accountant uses the account "Deferred expenses No. 97" and the account "Deferred income No. 98". Moreover, the company reflects the expenses and income from the sale of scrap metal in a collapsed manner.

Firm A's entries are as follows:

Dt 02 Kt 01 sub-account "Disposal of fixed assets" 3,200,000 rubles - write-off of accrued depreciation.

Dt 97 Kt 01,800,000 rubles - write-off of the residual value.

Dt 10-5 Kt 91-1 600,000 rubles - spare parts received;

Dt 23 Kt 60,120,000 rubles - work performed by Firm B;

Dt 19 Kt 21,600 rubles - VAT accounting for work.

Dt 10-6 Kt 91-1 360,000 rubles - accounting for scrap metal from the dismantling of machine tools;

Dt 62 Kt 91-1 360,000 rubles - profit from the sale of scrap metal;

Dt 91-2 Kt 10-6 360,000 rubles - write-off of the cost of scrap metal.

Dt 23 Kt 60,280,000 rubles (400,000 - 120,000) - work of Firm B;

Dt 19 Kt 60 50,400 rubles (72,000 - 21,600) - VAT accounting for the work of Firm B;

Dt 68 Kt 19 73 200 rubles - acceptance of accounting for deduction;

Dt 98 Kt 97,960,000 rubles (600,00 + 380,000) - closing of account 98 after the liquidation of the object;

Dt 91-2 Kt Kt 97,240,000 rubles (800,000 + 120,000 + 280,000 - 960,000) - loss from disposal.

The balance sheet for the 1st quarter of 2012 does not reflect the residual value of lathes. In the group of articles “Inventories” of the category “Current assets”, instead, there is an article “Liquidation of property”, which displays the amount of 800,000 rubles from account 97. In the statement of losses and profits, the article “Other expenses” displays the amount of 240,000 rubles.

Equipment, buildings, structures, machines, equipment, vehicles and other property related to fixed assets:

• those that have become unusable due to physical wear and tear, accidents, natural disasters, violations of normal operating conditions and for other reasons;
• obsolete;
• in connection with the construction, expansion, reconstruction and technical re-equipment of enterprises, workshops or other facilities.

At the same time, property related to fixed assets is subject to write-off only in cases where it is impossible or economically unreasonable to restore it, and also when it cannot be sold or transferred to other organizations, institutions, companies, enterprises.

When writing off equipment at an enterprise, one should be guided primarily by methodological instructions for accounting for fixed assets.

Below we publish an extract from the guidelines on accounting for fixed assets, registered with the Ministry of Justice of the Russian Federation on November 21, 2003, valid at the time of publication of the material on May 25, 2016. (You should check the changes and additions on the official websites.)

VI. Disposal of property, plant and equipment

75. The cost of an item of fixed assets that is disposed of or is not permanently used for the production of products, performance of work and provision of services, or for the management needs of the organization, is subject to write-off from accounting.

76. The disposal of an item of fixed assets is recognized in the accounting of the organization on the date of the one-time termination of the conditions for accepting them for accounting, given in "paragraph 2" of these Guidelines. The disposal of an item of property, plant and equipment may take place in the following cases:

• sales;
• write-offs in case of moral and physical deterioration;
• liquidation in case of accidents, natural disasters and other emergencies;
• transfers in the form of a contribution to the authorized (share) capital of other organizations, a mutual fund;
• transfers under contracts of exchange, donation;
• transfers to a subsidiary (dependent) company from the parent organization;
• shortages and damage identified during the inventory of assets and liabilities;
• partial liquidation during the performance of reconstruction works; in other cases.

77. To determine the feasibility (suitability) of the further use of equipment, fixed assets, the possibility and effectiveness of its restoration, as well as to draw up documentation for the disposal of these objects in the organization, by order of the head, a commission is created, which includes the relevant officials, including the chief accountant (accountant) and persons who are responsible for the safety of equipment, fixed assets. Representatives of inspections, which, in accordance with the legislation, are entrusted with the functions of registration and supervision of certain types of property, may be invited to participate in the work of the commission.

The competence of the commission includes:

• inspection of equipment, fixed assets subject to write-off using the necessary technical documentation, as well as accounting data, establishing the expediency (suitability) of further use of equipment, fixed assets, the possibility and effectiveness of its restoration;
• establishing the reasons for the write-off of equipment, fixed assets (physical and moral depreciation, violation of operating conditions, accidents, natural disasters and other emergencies, prolonged non-use of equipment, an object for the production of products, performance of works and services or for management needs, etc.);
• identifying persons who are to blame for the impossibility of further operation of equipment, premature disposal of fixed assets, making proposals for bringing these persons to liability established by law;
• the possibility of using individual components, spare parts for cameras, lenses, flashlights, parts of computers, office equipment, televisions, household appliances, materials of the retired item of fixed assets and their assessment based on the current market value, control over the withdrawal of non-ferrous and precious metals from decommissioned devices as part of the item of fixed assets, determination of weight and delivery to the appropriate warehouse; exercising control over the withdrawal of non-ferrous and precious metals from decommissioned fixed assets, determining their quantity, weight;
• drawing up an act of technical expertise for the write-off of equipment and other fixed assets.

78. The decision taken by the commission to write off an item of fixed assets is drawn up in an "act" for the write-off of equipment or another item of fixed assets, indicating data characterizing the item of fixed assets (date of acceptance of the item for accounting, year of manufacture or construction, time of commissioning, period useful life, the initial cost and the amount of accrued depreciation, revaluations, repairs, reasons for disposal with their justification, condition of the main parts, parts, assemblies, structural elements). Act on the write-off of equipment at the enterprise or an item of fixed assets is approved by the head of the organization.

79. Spare parts, parts, assemblies and assemblies of equipment or other retired item of fixed assets, suitable for the repair of equipment and other items of fixed assets, as well as other materials are accounted for at the current market value on the date of decommissioning of fixed assets.

(See the edition of the "Order" of the Ministry of Finance of the Russian Federation of December 24, 2010 N 186n)

80. On the basis of the issued act for the write-off of equipment and other fixed assets transferred to the accounting service of the organization, a note is made in the inventory card about the disposal of the fixed asset. Corresponding entries on the disposal of an item of fixed assets are also made in a document opened at its location. Inventory cards for decommissioned equipment and retired fixed assets are stored for a period established by the head of the organization in accordance with the rules for organizing state archiving, but not less than five years.

81. The transfer by an organization of an object of fixed assets to the ownership of other persons is formalized by an act of acceptance and transfer of fixed assets. On the basis of the specified act, a corresponding entry is made in the inventory card of the transferred object of fixed assets, which is attached to the act of acceptance and transfer of fixed assets. A note is made on the withdrawal of an inventory card for a retired fixed asset item in a document opened at the location of the item.

82. The transfer of an item of fixed assets between the structural divisions of the organization is not recognized as the disposal of an item of fixed assets. The specified operation is made out by the act of acceptance and transfer of fixed assets. The return of the leased item of fixed assets to the lessor is also documented by an act of acceptance and transfer, on the basis of which the lessee's accounting service writes off the returned item from the off-balance sheet.

83. Disposal of individual parts that are part of an item of fixed assets, which have different useful lives and are accounted for as separate inventory items, is drawn up and reflected in accounting in the manner described above in this section.

84. Lost power. - "Order" of the Ministry of Finance of the Russian Federation of December 24, 2010 N 186n.

85. Disposal of an object of fixed assets transferred as a contribution to the authorized (reserve) capital, share fund in the amount of its residual value is reflected in the accounting records in the debit of the settlements account and the credit of the fixed assets account. Earlier, the arising debt on a contribution to the authorized (reserve) capital, unit fund is recorded in the debit of the account for accounting for financial investments in correspondence with the credit of the account for accounting for settlements for the amount of the residual value of the fixed asset object transferred as a contribution to the authorized (reserve) capital, unit fund, and in the case of full repayment of the cost of such an object - in a conditional assessment adopted by the organization, with the allocation of the assessment amount to financial results.

86. Income and expenses from the disposal of an item of fixed assets are subject to crediting to the profit and loss account as other income and expenses and are reflected in the accounting records in the reporting period to which they relate.

Any equipment has its own life, after which it must be written off. To do this correctly, you need to act in a certain order, regulated by law. How to write off fixed assets in 2017, we will consider in the article.

Any accountant directly involved in the acceptance, depreciation and write-off of fixed assets must clearly know the procedure and the required list of documents. Otherwise, the tax service may have questions regarding the legality of the write-off, the absence of mandatory documents.

Before writing off fixed assets at an enterprise, it is necessary to study the order of the Ministry of Finance of the Russian Federation No. 33n dated July 20, 1998. It contains information about mandatory events and documents, regulates the procedure for accounting for fixed assets.

Write-off of fixed assets: documentation

The write-off of fixed assets seems to be a common and simple matter, but in fact the enterprise needs to draw up a number of papers that would confirm the legality of the disposal of fixed assets.

The disposal is preceded by the issuance of an order to create a special commission, which is entrusted with the write-off of fixed assets (documentation of the formation of such a commission is strictly necessary). It includes the following persons:

• chief accountant of the company;
• technical specialists;
• MOL, which are fixed assets subject to disposal.

Responsibilities and functions of the commission for writing off fixed assets

During the creation of the commission, their powers are determined. The guidelines provide for the inclusion of the following functionality in this list:

• The Commission conducts an inspection of the decommissioned object. She is also involved in the preparation of all documentation related to the write-off. This includes not only technical and commercial, but also accounting documents.
• The reason for the write-off is established, as well as the impossibility of using the OS object for subsequent use, restoration or sale.
• Determine the circle of perpetrators if the OS has become unusable earlier due date service has been damaged or partially damaged. In the course of the proceedings, the commission develops proposals for involving these workers in compensation for damage.
• If some parts of the fixed asset can be used in further work (for example, as a spare part for other equipment), then a list of these parts is compiled and their cost estimate is carried out. In the future, it is the commission that is responsible for the dismantling of all the listed parts.
• Completion of write-off acts, signing of all necessary documentation.

Upon completion of the inspection of the object, a special commission draws up an act for write-off. The form of this document is approved by the head of the organization. If desired, you can also use the unified acts approved on January 21, 2003 after the decision of the State Statistics Committee of the Russian Federation No. 7 was issued. If the enterprise independently develops the forms of acts, then they must necessarily comply with the requirements reflected in federal law No. 402-FZ of December 6, 2011.

Forms of acts for the write-off of fixed assets

During the work of the commission, acts of the following forms can be drawn up:

• OS-4 is used to write off one object that is not a vehicle;
• OS-4a - filled in in case of disposal of vehicles;
• OS-4b - it is necessary to write off several fixed assets that are not related to vehicles at once.

When transferring a fixed asset to other organizations, an acceptance certificate is used. It is he who is the rationale for the write-off in this case.

Mandatory requisites of acts of write-off

The main document confirming the work of the commission is the write-off act. It must contain the following information about the decommissioned item of fixed assets:

• when it was made or erected;
• when and at what cost the enterprise was accepted on the balance sheet;
• lifetime;
• the total amount of accrued depreciation;
• why is it written off;
• its quality characteristics.

Features of drawing up a write-off act

After drawing up, the act is signed by all members of the commission and approved by the head of the organization. Only after that, information about its disposal is entered into the inventory card of the object. This is done by the chief or other authorized accountant. The inventory card must be kept at the enterprise after the disposal of the object for another 5 years.

All accounting entries are made on the basis of the write-off act. The document must be drawn up in two copies. They are sent to the following people:

• responsible accountant;
• MOT of this object (only if there is an act, it is possible to deliver the spare parts of the object to the warehouse).

According to the guidelines, when writing off an object of fixed assets, the organization must draw up an appropriate act. No additional documents are required by law. For example, an order to write off fixed assets, a sample of which will help to draw up the paper correctly, is not mandatory.

But sometimes the tax authorities may request it when checking the enterprise. This is possible if during the write-off procedure related expenses appeared. Sometimes an order is needed to indicate it as a basis for drawing up a write-off act.

The letter of the Ministry of Finance of the Russian Federation No. 03-03-06 / 1/454 dated July 9, 2009 also makes it clear that it is better to draw up a write-off order in order to avoid confusion. But not a single legislative act specifies how such a document should look like, so it can be drawn up in any form.

In addition to the standard details (number and date of the order, name of the organization, city), the text of the order should contain:

• inventory number of the object;
• the reason for the write-off;
• term of liquidation (if it is implied);
• the basis for drawing up the order;
• assignment to an accountant, MOL, storekeepers or other responsible persons.

All persons receiving instructions in accordance with the order must affix a signature indicating that they have read the document. Be sure to sign the order and the head of the enterprise.

Write-off of fixed assets: postings

The write-off of fixed assets involves making changes to the balance sheet of the enterprise. The responsible accountant, knowing the reasons, makes the appropriate entries. Due to the reason for which fixed assets are written off, different postings can be used.

Write-off of fixed assets unusable

If an organization writes off due to depreciation of an object, then the following postings must be used:

• D01 (a special sub-account is used for the disposal of fixed assets) - K01 - to write off the initial cost;
• D02 - K01 (subaccount) - depreciation is written off;
• D91 - K01 (sub-account) - write-off of the remaining (not depreciated) cost of the object.

OS sale

If the company decides to sell the fixed asset to another organization, then the following postings are applied:

• D01 (subaccount) - K01 - write-off of the initial cost;
• D02 - K01 (subaccount) - depreciation is written off;
• D91 - K01 (subaccount) - the balances from the value of the object are written off.

In this case, the residual value is shown as part of other income. Additionally, revenue is displayed in accordance with posting D62 - K91. It is also necessary to reflect the amount of VAT charged by posting D91 - K68.

Use of fixed assets as a contribution to the UK

This is a situation where a fixed asset is transferred to another organization as an investment. Subsequently, the original owner of the object will receive dividends. The write-off of the initial cost and depreciation proceeds in the same way as in the two previous cases, but the transfer itself is displayed as follows: D58 - K01 (sub-account).

There are several other specific situations that require the use of special entries in enterprise accounting.

Reasons for write-off of fixed assets: examples and terms

Write-off act, write-off order - both of these documents require you to indicate the reasons for the write-off of fixed assets (examples, terms will help you deal with possible situations).

The order of the Ministry of Finance of the Russian Federation No. 26n dated March 30, 2001 states that if a fixed asset retires from the organization's main fund or cannot generate income for the organization, then its value must be written off.

Order of the Ministry of Finance of the Russian Federation No. 91n dated October 13, 2003, as a justification for the disposal of fixed assets, indicates that the object is not used on a permanent basis for production or management purposes.

If we consider the write-off of fixed assets more globally, then the following reasons can be distinguished:

• the organization sold the OS;
• the object was transferred to another organization free of charge;
• the main tool was changed to another;
• due to physical or moral deterioration;
• damage (partial or complete) due to emergencies;
• OS is used as a contribution to the MC;
• the object was stolen, lost or damaged, which was established only as a result of an inventory at the enterprise.

Depreciation of the fixed asset

Any fixed asset (with rare exceptions) loses its quality characteristics, fails. The use of such equipment eventually becomes unprofitable for the enterprise. There are the following types of wear:

• Physical deterioration. This is the material wear and tear of the fixed assets used, due to which its properties and performance characteristics get worse.
• Obsolescence. It implies the depreciation of the OS due to the emergence of more technologically advanced and modern analogues, which leads to a decrease in production costs if they are used. This type of wear is not always possible to predict, as it depends on the speed of technological progress. Sometimes equipment becomes morally obsolete after a few years, and sometimes its use is relevant even after decades. This parameter largely depends on the industry in which a particular fixed asset is used.

Physical wear may coincide with the service life. Then all the costs of its acquisition will be fully depreciated. If the depreciation of the object occurred before the deadline, then part of the cost will need to be taken into account when writing off.

Other reasons for decommissioning the OS

Depreciation is not the only reason for decommissioning OS objects. For example, it can simply be sold to another company. In this case, not an act of write-off is drawn up, but an act of acceptance and transfer. If the OS is used to make a contribution to the Criminal Code of another company, then the act of acceptance and transfer is also used, in this case the cost of the objects is not related to expenses, but is recognized as financial investments.

The organization may lose fixed assets as a result of their theft or theft. Then further actions depend on whether it is possible to establish the responsible person, whether he is an employee of the organization.

There are many reasons for writing off fixed assets, each of them has a certain procedure for further procedures, requires the allocation of expenses incurred to certain accounts, and, consequently, the preparation of appropriate entries.

Write-off of fixed assets due to its unsuitability for further use is not carried out without the use of appropriate documentary evidence. For evidence, the following documents are drawn up:

• decommissioning acts (they contain information confirming that the OS object is decommissioned);
• defective statements (they are needed to indicate the reasons and arguments indicating the impossibility of using the object by the enterprise).

Why do you need a defective statement?

There may be several reasons why a defective statement for the write-off of fixed assets is used (a sample will help to correctly enter all the necessary information), there may be several:

• explains why it is necessary to write off the OS object, approaching the issue of its use from an economic point of view;
• the use of information from it allows you to analyze the reasons for the failure of the decommissioned equipment (this allows you to eliminate the identified causes in order to avoid damage to the equipment in the future and the need to write it off before the established service life);
• is evidence of the validity of the write-off of fixed assets from an expert point of view (such a document may be requested by the company's shareholders, its investors or other interested parties to verify the legality of the write-off).

Mandatory details of the defective statement

The most important part of the defective statement is the indication of the facts, due to which it is impossible to use the fixed asset in the enterprise, and it must be written off as soon as possible. In order for all mandatory information to be displayed in a document, it must be compiled in accordance with a certain structure.

A properly drawn up defective statement should contain the following data:

• name of the organization (full name is written);
• the structural unit to which the fixed asset to be written off is assigned;
• the composition of the commission that conducted the examination of the write-off object (information is entered on all technical specialists);
• an entry is made on the impossibility of further use of the fixed asset;
• information about all the objects under study (for each, a factory and inventory number is prescribed, the cost of the OS and the previously established planned period of its use are additionally entered);
• information about detected defects and identified faults for each object;
• conclusion of the commission on the need to write off the objects due to the inexpediency of their further repair or sale due to the presence of serious malfunctions.

After drawing up the document, it must be signed by all members of the commission.

Sample defective statement

Conclusion

The write-off of fixed assets has many nuances and complexities that need to be studied even before the procedure for the liquidation of fixed assets begins. Knowing the procedure for writing off in accordance with specific reasons, compiling entries and required documents, the organization will be able to correctly write off, and in the event of an audit by the tax service, it will be able to provide all the papers confirming the legality and validity of the actions taken.