Work processes and time lead to the fact that sooner or later we may face such an issue as the modernization of fixed assets. That is, we will deal with the costs of a fixed asset item, as a result of which the quality of use of the fixed asset item will improve and its initial cost will increase. How to modernize fixed assets in the 1C: Enterprise Accounting 8 program, we will look in this article.

So, in order to modernize a fixed asset in the program, the costs that were incurred in current period for fixed assets, collect on account 08.03 “Construction of fixed assets”.

Let’s say there is a fixed asset “Woodworking machine”, which was put into operation at the beginning of the year. Depreciation is charged on it every month at the end of the month.

After some time, a decision was made to purchase a more powerful engine, which would improve the performance of the machine. Since the machine is already in operation, it will be necessary to modernize this fixed asset.

The purchase of an engine is carried out through the document "Receipts (acts, invoices)", when creating it, select "Goods".

If the organization suffered additional expenses to replace the engine, then we again create a document with the type of operation “Services” and immediately set the account to 03.08 in the cost account.

Since upon receipt of the part for the modernization of the fixed asset, accounting account 10.06 was indicated, and it is necessary to collect all expenses on account 08.03, we will enter the document “Requirement-invoice” based on it.

On the "Materials" tab we indicate the purchased part, and on the "Cost Account" tab - the account we need and fill in the fields "Construction object", "Cost items". If the modernization concerns a construction object, then the modernized construction object is selected in the field of the same name. In the case of equipment modernization, as in our situation, a construction object is created in parallel to fill it, let it be “Machine modernization”.

Using the report "Account balance sheet" we can check, clearly seeing what amount was formed by the debit of the account on 08.03.

So, how is the “OS Upgrade” document filled out?

We must indicate the organization and location of the fixed asset that is subject to modernization. On the construction object tab, indicate the object established in the document “Demand-invoice”, accounting account 08.03 and click “Calculate amounts”. The total amount that we see both in accounting and tax records coincides with the amount from the balance sheet.

Tab "Fixed assets": on it we add the fixed asset, the modernization of which is being carried out and click the "Distribute" button, we again see the amount and period of use. There is a third tab in this document, “Depreciation Bonus,” on which a check box indicates whether the depreciation bonus will be included in expenses. With this choice, additional fields appear to be filled in. In accordance with paragraph 9 of Art. 258 of the Tax Code of the Russian Federation, an organization can apply in tax accounting depreciation bonus with costs associated with modernization.

As soon as the document "OS Modernization" is completed, the costs will be written off from the account on 03/08.

After modernization, the amount of depreciation is also calculated when closing the month with the routine operation “Depreciation and depreciation of fixed assets.” In the month in which the modernization was carried out, the accrual amounts will be the same, and in the next month a temporary difference will appear.

It should be noted that after modernization of a fixed asset, the amount of depreciation according to accounting and tax purposes is different. This happens because the formulas for calculating depreciation amounts for accounting and tax accounting are different. In accounting, according to PBU 6/01, the remaining period is used in the calculation beneficial use and residual value at the time of modernization. And in tax accounting, on the basis of Art. 259 of the Tax Code of the Russian Federation, - the initially accepted useful life and initial cost. It turns out that the amount of accruals for tax accounting will be less, a temporary difference will appear and, corresponding to it, a deferred tax asset.

If you need more information about working in 1C: Enterprise Accounting 8, then you can get our book onlink.

In the process of using fixed assets, equipment can break down, lose its operational properties, and become morally and physically obsolete. To restore the properties and characteristics of fixed assets, repairs are carried out. If, in the process of repair work, the object is improved, it becomes more functional, more efficient, that is, its technical and economic indicators generally improve, then this will no longer be just a repair, but a reconstruction or modernization.

The difference between reconstruction and repair

It is important to see the differences between conventional and modernization or reconstruction. The cost accounting mechanism is different in both cases, so it is necessary to determine at the initial stage how the fixed asset will be restored.

During the repair process, the functions and properties of the object are restored that they had at the initial stage of operation, that is, the object does not become better than it was. Just repairing breakdowns and damage.

If, in the process of carrying out repair work, replacing parts and components of equipment, the fixed asset has become more powerful, more functional, its productivity has increased, and the layout has improved (for real estate), then this is already modernization and reconstruction. And costs need to be taken into account differently.

Maintenance costs are included in the cost of production or selling expenses. Expenses for modernization, reconstruction, completion, and additional equipment increase the initial cost of the OS.

So, modernization is characterized by an increase in productive capacity, an increase book value OS and useful life, changing accrual parameters.

Accounting for costs of reconstruction (modernization) of fixed assets

The main feature that distinguishes reconstruction from repair is the improvement of the technical and economic indicators of the facility. From an economic point of view, the main asset becomes more profitable for operation. During the process of reconstruction (modernization), new properties and functions of an object may appear.

Documenting:

If an enterprise decides to improve a fixed asset by modernizing it, then the manager issues an order (instruction) in which he establishes which object is subject to major repairs, what the deadlines for the work are, and appoints responsible persons.

A defective statement is filled out for the OS facility indicating the reason for the need for modernization.

If the work is carried out by contract, then an agreement is concluded with the contractor, which describes the timing of the work, and also provides a list of what needs to be done. Estimate and technical documentation is drawn up.

The OS is transferred for modernization and reconstruction on the basis of an invoice for internal movement (form OS-2). This form is issued if the OS will be repaired by the organization itself. If third parties are involved for this, then the transfer and acceptance act OS-1 is used.

The modernized, reconstructed object is accepted back into accounting on the basis of the acceptance certificate in the OS-3 form.

Information about major repairs and associated costs is reflected in the facility’s inventory card.

Postings for cost accounting

All expenses for modernization and reconstruction are attributed to the increase in the initial cost of the fixed asset.

Just as with , all costs for work performed are collected in the debit of account 08, after which they are transferred to the debit of account 01.

Postings when modernizing (reconstructing) fixed assets on your own:

• D08 K10 – materials necessary for modernization (reconstruction) have been written off.
• D08 K70 – accrued wage workers involved in the reconstruction process.
• D08 K69 – accrued insurance premiums from the salaries of these workers.
• D08 K23 – expenses of auxiliary production are written off.
• D01 K08 – the cost of fixed assets has been increased by the amount of costs for modernization and reconstruction.

Wiring when carrying out contract work:

• D08 K60 (76) – reflects the cost of work by third-party organizations.
• D19 K60 (76) – VAT is allocated from the cost of work performed.
• D01 K08 – the cost of fixed assets has been increased by the amount of expenses taken into account.

As the cost of fixed assets increases, monthly depreciation deductions will also increase; this must be taken into account when calculating depreciation.

It should also be noted that in connection with the improvement of the technical and economic indicators of the OS object, the useful life may be increased. The need for this is determined by the management of the organization and the commission that controls the process of modernization (reconstruction).

Modernization of fixed assets is a process carried out to improve the efficiency of use of a fixed asset. The catch is that often the accountant confuses the terms a little. He doesn't see the difference between modernization and repair.

When using an item, it wears out mentally and physically. Modernization of an element serves as one of the methods for its restoration. This is a kind of work, after which the technological or service functions of the object change, and an option appears for its use for purposes that require increased returns.

It is noteworthy that the reflection of the results of modernization, reconstruction or completion in accounting and tax papers varies greatly. When a fixed asset comes into accounting, the accountant often tries to select for it in the documentation the same method of calculating depreciation and useful life. When the initial cost also turns out to be equal, then life becomes noticeably easier: volumes estimated depreciation will be the same.

But when carrying out modernization of main facilities, their reconstruction or general reassignment, it is necessary to accrue different amounts of depreciation in tax and accounting documents.

This is argued by the fact that the methods of monitoring depreciation volumes after performing the agreed work in accounting and tax accounting are noticeably different.

Concepts: modernization, reconstruction and repair of OS

What is modernization of fixed assets? Methods for displaying incurred costs in accounting are largely tied to their general essence, therefore it is important to accurately distribute the concepts, separating modernization from reconstruction or repair:

• Point 2 p. 257 of the Tax Code regulates that the modernization of OS facilities includes factors due to which changes are made to the technical or service function of a unit, as well as the overall capacity, productivity are increased, or new characteristics appear.
• Reconstruction of fixed assets - a complete change in structure. The process changes the results of its application, allows you to diversify the number of final products, increase their characteristics or quantity. The Tax Code also introduced the term “technical re-equipment”. It is associated with the work of new technologies and the depreciation of product manufacturing processes.

Attention! These 2 terms are connected by the fact that as a result, the OS item receives a number of improved characteristics, increases productivity, etc.

• Renovation is a completely different matter. During the process, no technical parameters are improved, but remain at the same level. The whole point is to eliminate existing breakdowns or replace worn-out spare parts.

In paragraph 14 of the act on drawing up accounting“Accounting for fixed assets” costs for the process of modernization, reconstruction or other re-equipment of this type increase the initial cost of the fixed asset.

It is noteworthy that, unlike expenses for modernization, expenses for the restoration of objects do not in any way affect the final value of the property; in tax documentation they are classified as other waste (according to paragraph 1. p. 260 of the Tax Code). IN financial statements Such movements of funds are included in the costs of maintaining a specific unit in which the specified fixed asset is used.

Modernization: paperwork

The decision to assign modernization must be formalized in the form of an order from the head of the enterprise. It must indicate:

• Reasons for the process;
• Working hours;
• Persons responsible for improvement.

When the modernization of equipment is transferred to the forces of third parties, it is necessary to conclude a contract with them. During the transfer of OS units, the contractor should draw up a transfer and acceptance document for a specific object for the purpose of modernization. The form is not important, a free version is allowed. If the OS donated for modernization is damaged by a third party, then this act will make it possible to claim compensation from the contractor for losses incurred for the loss of the object. In the absence of witness documentation, it will be difficult to prove the fact of direct transfer.

When sending an item for improvement to a separate department within the company (for example, to a construction team, etc.), it is necessary to draw up an invoice for the intra-organizational movement (for example, using a single form No. OS-2). When upgrading does not require changing the location of the OS, then there is no need to draw up any papers.

After completion of the modernization, an acceptance certificate for the OS with an improved configuration (for example, type No. OS-3) is filled out. It is compiled regardless of how the asset was modernized. However, in the case of an economic method, it is necessary to fill out the form in one copy, and in the case of a contract method, two copies (for both parties to the transaction). The document is signed by the following persons:

• Sitting on the acceptance committee assembled by the company;
• Responsible for the asset modernization process (representatives of the contracting company);
• Responsible for the condition of the OS item after the modernization.

Features of OS accounting

As mentioned above, modernization costs = increase in the price of fixed assets when preparing accounting papers. The company undertakes to maintain regulations on facilities according to the degree of their involvement:

• Stocks;
• In purpose;
• On modernization, etc.

Accounting for such assets according to the degree of their involvement can be carried out with or without being reflected in account 01 (03). It turns out that during long-term modernization it is reasonable to take OS items in a separate account “Fixed assets for modernization”. This kind of action can be shown by the entry: Debit 01 (03) subaccount Fixed assets for modernization" CREDIT 01 (03) subaccount "Fixed assets in operation".

• Sent for OS improvement.

After completing the upgrade of the item, reverse wiring is performed.

Accounting for OS upgrade costs

All expenses for the modernization of the operating system are reflected in account 08 “Investments in non-current assets”. To gain access to information on types of capital investments, it is reasonable to add the calculation “Modernization expenses” to account 08. The process of improving OS units is reflected in the documentation with a similar note: “DEBIT 08 subaccount “Modernization expenses” CREDIT 10 (16, 23, 60, 68, 69, 70, 76...)”

All expenses for the process must also be calculated. Important:

• Upon completion of the modernization, expenses recorded on account 08 can be included in the initial price of the OS asset or recorded separately on account 01 (03). Similar points are specified in paragraph 42 of the Methodological Instructions.
• If modernization expenses are included in the initial cost, then you need to make a posting: “DEBIT 01 (03) CREDIT 08 subaccount “Modernization expenses””
• After the modernization was completed, their starting price was increased. In this case, all expenses for the process are reflected in primary type papers for accounting for fixed assets. For reception, in the OS control inventory card.
• When separately accounting for modernization costs, all points are written off to account 01 (03). For example, for “Expenses for modernization of fixed assets.” An entry is made: “DEBIT 01 (03) subaccount “Expenses for modernization of fixed assets” CREDIT 08 subaccount “Expenditures for reconstruction”.

When expenses for the process are written off on account 01 (03), all expenses are sent to a separate inventory card.

Often in organizations it becomes necessary to change some features of objects. To achieve this goal, old elements are replaced with new ones. In other words, they are upgrading the OS.

general information

Due to operation, fixed assets wear out. For this reason they are often changed. Before upgrading the OS, it is important to decide how this will be done. The first option is economic, when the forces of the enterprise itself are involved. The second is contracting, when the OS modernization is carried out by outsourced employees of a third-party company. This term should not be confused with repair. The latter does not lead to changes in indicators; they remain at the same level.

In tax and accounting

In tax and accounting, OS modernization will vary. Thus, there are cost differences that affect the initial price of an item. In tax accounting, 2 methods are used - linear and nonlinear.

When the procedure for upgrading the operating system in accounting is completed, the terms of application of the element are increased without restrictions on the increase. Tax accounting leaves the deadlines at the same level. The main resource here is an object that meets the following requirements: the property is used for 12 months, the goal is to make a profit, there is depreciation, and the price exceeds the restrictions.

Terms

Modernization is a procedure that improves the design, improves the performance of an element, and expands its capabilities.

Accounting is the collection of data, their generalization, and analysis, which affects the financial side of the enterprise.

Tax accounting is the systematization of information about expenses and profits.

Reconstruction are measures taken to increase capacity and production levels.

Repair of basic resources is considered a process of partial restoration of elements aimed at maintaining them in the desired condition.

Retrofitting is the addition of basic resources with parts that give additional characteristics to the original objects.

Depreciation is the transfer of the cost of an asset due to wear and tear to the cost of the product.

Why hold it?

Before upgrading the OS, you need to understand why it is being done. This procedure is aimed at restoring performance or indicators that do not affect the quality of the element’s performance. With its help, elements are given additional functions.

Normative base

The Tax Code of the Russian Federation, in Article 257, sets out the goal of modernizing the OS. It consists in improving the initial characteristics of fixed assets. The same article indicates that the price of the item may change in the process.

Article 259 of the Tax Code of the Russian Federation emphasizes that the costs of modernizing the operating system are included in depreciation costs. Article 258 declares that in cases where the process does not lead to an increase in the service life of the element, the taxpayer must take into account the remaining period.

How it is carried out

Official documents regulate OS modernization along with the procedure for action. First of all, they save up the amount of expenses, then draw up the documents. When the process is completed, the accumulated amount is written off. To recognize the results of the OS modernization procedure, documents from an accountant are required. Primary documents serve as evidence of the implementation of the procedure. They also serve as the basis for accounting. But if, for example, the OS upgrade is not documented, then it is not taken into account.

To carry out the procedure, the first step is to issue an appropriate order. It is he who gives the right to implement it.

It must indicate the reason, duration of the event, and information about the responsible persons. Before work begins, a commission is formed. She is the one who inspects the elements, draws up the schedule and draws up the paperwork. Then an agreement is concluded with the contractor in cases where the modernization is not carried out by the enterprise itself. And only then the elements are subjected to the procedure. An invoice is issued for the transfer of fixed assets. When the procedure has been carried out, an act of acceptance and delivery of objects to be modernized is formed. It must contain the signatures of members of the commission, management and representatives of those who carried out the work. Information for each item is stored in inventory cards. Once the main resource is registered, a card is also issued for it.

Formation of an order

In the absence of a corresponding order from management, the procedure is never started. It is the documentation that indicates the reasons for the work and the duration of the work. In accounting for OS modernization, this document is fundamental.

Certificate for retrofitting

Additional equipment is carried out to give additional performance to basic resources. That is, new parts are added to the product without replacing old ones. The organization also carries out the procedure both itself and with the involvement of third-party professionals. When attracting workers, a corresponding agreement must be concluded.

How the documents will be drawn up will depend on the method of the procedure. If the fixed assets are transferred to external specialists, an act of acceptance and transfer of fixed assets for additional equipment is drawn up.

There is no single form of the document; for this reason, it is prescribed in any format. The act provides the possibility of compensation for damages if the operating system is damaged as a result of the procedure. In cases where there is no act, guilt is unlikely to be proven. The document must contain the signatures of commission members, responsible persons, and workers responsible for the integrity of the element. Then the act is approved by management and transferred to the accountant.

Renewal factor

This coefficient helps to identify and highlight some of the new operating systems next to those existing by the end of the reporting period in the enterprise. The calculation is carried out as follows - the initial price of fixed assets received during the entire period is divided by the initial price of fixed assets at the end of the period.

Using the coefficient, it is determined at what stage the enterprise is. If it is less than 1, the organization is considered to remain in the downsizing stage. But if it exceeds 1, then production expands. With a gradual decrease in the indicator, we can say that the organization is equipped with less and less OS.

Postings

OS modernization is reflected in accounting. And there the use of wiring becomes necessary. First of all, D 08 K 10 is used (the cost of materials used in modernization is reflected in accounting). D 08 K 23 reflects costs. D 08 K 60 reflects the debt to the counterparty for work performed. D 08 K 68 - VAT calculation. D 68 K 19 - VAT claimed for deduction. D 01 K 08 the original cost increased. Care is important when completing these transactions for OS modernization, since the slightest mistake will affect the amount of taxes.

FAQ

Often, during the procedure, employees ask many questions. For example, you may be faced with the question of whether fixed assets continue to be used when depreciation has ended. The modernization of the OS with depreciation, which has come to an end, is being carried out. Also, OS data continues to be used.

They also often ask whether OS repairs need to be shown in accounting. In fact, it is always reflected in both tax and accounting records. Many people are concerned about how many certificates of failure of fixed assets are needed. When carrying out work, the organization will need only one act. But if outside specialists were involved, then a separate document must be drawn up for each participant in the process.

Zero residual value

Upgrading a depreciated OS is permitted by law. This element is subject to further use, because it continues to comply with legal requirements. A number of ways are open to the enterprise on how to deal with these elements. You can re-evaluate these elements and continue to keep records based on their number. Management decides what to do. On the issue of OS modernization with depreciation, the law leaves it to legal entities freedom of choice.

The accounting regulations emphasize that the revaluation of elements is carried out on a voluntary basis. This procedure is carried out when on the reporting day the price of the element differs from its original cost. For this reason, a revaluation is carried out. But they take into account that the appraiser must have the appropriate qualifications. Otherwise the rating will be invalid. When revaluing a fixed asset, you need to know that the price is added to the original price, but the cost of wear and tear is not subject to change.

A salvage value is assigned to these items. When the revaluation is completed, the item is depreciated at the new price less the disposal value and based on the extended period.

In cases where they are revaluing an asset, all assets included in the group are reviewed.

The second way is to take a quantitative account of all operating assets. If an enterprise does not want to carry out revaluation, it can use depreciated fixed assets, carrying out their quantitative accounting in the accounting department. The company chooses any path. Regardless of your choice, tax accounting will not change.

Major or current repairs

They restore the OS by carrying out repairs - basic, current or major. They carry it out by first developing a plan. At least, it is recommended to do so. During routine repairs, parts are replaced to maintain the functionality of the element. During a major overhaul, all worn-out objects are replaced at the same time. All this is reflected in accounting without fail.

There is one more requirement. The need for repairs must be confirmed by a special report drawn up based on the detection of OS malfunctions. Be sure to generate a defective statement. When repairs are carried out on their own, no additional documentation is provided. But if the process is transferred to third parties, a transfer invoice must be issued. When the repair is completed, an OS-3 certificate is drawn up. Regardless of how the procedure was performed, it is always formalized.

Accounting for fixed asset repairs faces a number of challenges. Firstly, it is monitoring the correctness of documentation, identifying the volume and cost of work that has already been completed for repairs. It also involves monitoring the expenditure of funds allocated for the process. Among other things, this is a determination of the presence of deviations.

Major repairs are a global and complex process.

During its course, the element is completely disassembled, replacing parts that have worn out. Another option is routine repairs. At documentation During a major overhaul, several factors are always taken into account. Thus, calculation coefficients are always included in the repair estimate. Estimate and technical documentation is developed on the basis of the current level of prices and tariffs, and invoices from suppliers of elements always contain links to the price list on the basis of which prices are set. When major repairs are carried out under a contract, the corresponding acts are always written out. Each material is always invoiced. The completion of major repairs is documented by acts of acceptance and transfer of the object.

Current repairs are carried out on a regular basis according to appropriate schedules. Defects must be corrected immediately. The amount of expenses for current repairs is always pre-registered in the enterprise plans.

In 1C

Upgrading the OS in 1C does not require much labor. First, the documentation for receiving the service is completed. To do this, select the column “Receipt of goods and services”. Before upgrading the OS in 1C, open a log and create new document. It is filled. When the date and counterparties are completed, the procedure will be entered, fill out “Services”. It records all the necessary data - modernization accounts, its cost, and so on.

Before upgrading the OS in 1C, they must double-check the information. And only then they begin the procedure. To understand how it is carried out, it is better to familiarize yourself with an example of filling out an OS upgrade in 1C 8.3. First of all, they create a new document, which they fill out when choosing an upgrade. Then they indicate the object itself and go to “Accounting”. When upgrading the OS to 8.3, this is necessary to calculate the cost of the operation.

Subtleties

Taxpayers who operate under a simplified tax regime consider depreciable property as their main assets. In other words, when the duration of work is more than 1 year, and the initial price is more than 20,000 rubles. Expenses for the purchase of OS are taken into account from the beginning of use of the object. If fixed assets were acquired before the transition to a simplified taxation system, then the amount of costs will depend on the period of useful use. When a resource is sold, first of all they find out how long has passed since the cost was taken into account. In cases where it is less than 3 years old, for tax accounting the base is recalculated. For each period in which the base was recalculated, a document is presented.

Deductions for depreciation according to the simplified tax system in accounting are carried out every quarter, and every month and year. When operating systems are purchased, this is reflected in the balance sheet as expenses. They include funds given to the seller, delivery, taxes, duties, fees and other expenses.

There are 2 methods of creating main resources at an enterprise operating under the simplified tax system - economic and contracting. The procedure is documented. When selling main resources, their value is necessarily written off from the balance sheet. But first, the cost of depreciation is written off.

Depreciation is charged every month on objects separately. An enterprise can revaluate fixed assets annually. Modernization is needed to return the element to action and improve its performance. The OS in NU and in accounting is being modernized. The process is always accompanied by paperwork.

detailed instructions

When new objects are purchased, before upgrading the OS in 1C 8.3, it is important to register them at the warehouse using the “Receipt” document. Then create a new document with the receipt type “Construction object”. All data is entered into columns. You can use the "Directory". You can access it from the receipt document. This is done simply: just click on “Add”, then a column will appear in the table, in the “Object of construction” column you need to click on “Show all”. Then the corresponding reference book will open, in which you can begin creating a map of the site. To make it easier to understand this, you can use the example of upgrading the OS in 1C 8.3 given below.

The “Cost Account” column will reflect the 26th invoice, but when it is necessary to include the price of the service in the cost of modernization, it is important to change the indicator to invoice 08.03.

When viewing the movement of the document, you can notice separate deadlines for the receipt of additional equipment and services related to the invoice 03/08.

Then the OS is upgraded. To do this, go to the “OS and Intangible Materials” tab, and then to “OS Upgrading”. Create a new document, fill in the columns “Organization” and “Location of OS”, selecting values ​​in the directory.

On the “Construction object” tab, print the name of the element, as well as the non-current asset account. Next, click “Calculate”. As with OS modernization, 1C 8.2, 8.3 itself will calculate the cost of fixed assets, taking into account the modernization and installation.

The “OS” tab contains a column with the name of the object subject to the procedure. Add from the directory and click “Distribute”. Then the amount will be automatically calculated. The postings will show an increase in the cost of the operating system taking into account the procedure.

Upgrading the OS in 8.2 is practically no different from the similar process in 8.3.

Organization of accounting for the sale of fixed assets

When an enterprise decides to sell a fixed asset, the accountant is faced with the task of correctly reflecting this procedure in accounting. The deal will have several consequences.

First, when transferring ownership of a property, the seller displays the income. It is taken into account as part of the rest and displayed on account 91.

It must be remembered that income is only the net selling price without including VAT. But first of all, full income is credited to account 91, and only then the VAT amount is displayed in the posting.

The sale of a fixed asset leads to the need to attribute the residual value of fixed assets to other expenses of the enterprise.

In the documentation when selling a fixed asset, the company formalizes the transfer through an acceptance certificate.

There is a separate conversation about the sale of unfinished objects. When conducting transactions, a situation may arise when an enterprise decides to sell a fixed asset that has not yet been completed. Then a number of nuances appear in accounting.

Thus, income from the sale of these objects is part of other income and is credited to account 91 in the amount contributed by the buyer.

But we must remember that objects that have not been completed are not recognized as fixed assets and do not have a formed initial value. Then the accountant is faced with the question of what exactly should be classified as expenses.

In this situation, other expenses include costs already incurred during the construction of the OS, including costs that accompanied the sale process.

As with the sale of fixed assets, with the sale of unfinished objects, income is written off on the date when the transfer of ownership occurred.

When transferring a former OS into the authorized capital of another enterprise, you need to be aware that the procedure requires proper documentation. So, in this case a special act will be needed. It is drawn up both in free form and according to a sample. It is important that the document reflects the residual value of the fixed asset, VAT, restored due to the transfer of fixed assets as a contribution to the authorized capital of another organization.

The OS that was transferred is assessed by the receiving party in order to identify the size of the contribution that was made by such a fixed asset. For this reason, the organization should be aware that if the receiving party values ​​the asset at a price higher than its book value, the difference will be attributed to the income of the company. Otherwise, if assessed in a smaller amount, the debt on the contribution to the authorized capital will be considered outstanding. For this reason, the difference is always included in other expenses and written off as a debit in account 91.

On the liquidation of fixed assets in accounting

This process has a number of subtleties. Since there is no income for the retired fixed asset, the company records only an expense. It includes: the residual value of the liquidated object, the amount of costs for work accompanying the procedure, the amount of VAT paid by the enterprise due to the liquidation of the fixed asset.

It is also important to remember that after this procedure the organization receives new material (for example, parts). It is entered in the debit of account 10.

Accrued depreciation - direct expense

The accounting policy emphasizes that accrued depreciation of fixed assets that are applied during economic activity enterprises is a direct expense. The right to determine the list of direct expenses is exercised in separate chapters of accounting policies.

Depreciation is included in their account if there are financial justifications. In this case, the procedure is associated with the technological process and production features. Often the tax office tries to challenge the list of direct expenses compiled by the taxpayer. She is trying to expand the list. Although the taxpayer himself chooses the rules of the game in the field of accounting policy and deals with direct expenses, the Tax Code of the Russian Federation does not consider that this procedure depends only on the taxpayer himself.

When tax disputes arise regarding the inclusion of depreciation as part of direct or indirect expenses, the participation of fixed assets in the production process is taken into account.

In addition, one of the weighty arguments that plays into the hands of the taxpayer is accounting policy for tax accounting purposes. It specifies the principle according to which depreciation is distributed into direct and indirect costs. According to this algorithm, depreciation charges are written off as expenses beyond the useful life of the operating system.

But there are a number of court decisions in which the judiciary is inclined to a different method of calculating depreciation of modernized fixed assets without increasing the useful life.

Learn more about the zero-cost object

Modernization is often carried out in relation to elements of fixed assets that have been depreciated. The regulatory authorities explain that if the useful life of an element increases after this procedure, the enterprise can begin calculating depreciation according to new standards. They are calculated taking into account the new deadlines.

The enterprise has the right to increase these periods within the limits that were established for the corresponding depreciation group, which previously included fixed assets.

However, earlier experts announced that after the modernization procedure was completed, it was necessary to use the depreciation rate that was established when the OS element was put into operation.

For example, in the practice of judicial authorities the following situations came across. In disputes, the enterprise modernized the fully depreciated operating system for tax accounting purposes. By that time, its useful life had already expired. The item was no longer depreciated when the upgrade was completed. Thus, the depreciation period has come to an end. The question was to determine methods for calculating the amount of depreciation in relation to depreciated fixed assets that have undergone the modernization procedure. And there are many such disputes.

Conclusion

It is important to carry out asset accounting in the manner prescribed by law. That is, take into account the fixed asset on the date it is brought to a state of readiness for operation. When an asset is sold, the amount is included in income, and the residual value is included in expenses. The same principle applies to unfinished objects.

Planning costs for the restoration of fixed assets

Classification of repair costs

Submitting requests for repairs

Reflection of expenses for repairs, modernization, additional equipment in the accounting of budgetary organizations

Each institution has fixed assets on its balance sheet as part of non-financial assets. During operation, fixed assets wear out and repairs are carried out to maintain them in working condition.

Work on the restoration of fixed assets can be classified according to the nature of the type of work as:

• Maintenance;
• major repairs;
• modernization;
• reconstruction;
• retrofitting

Note!

The reflection of operations in accounting and tax accounting depends on the type of work: costs for current, medium and major repairs of fixed assets are taken into account as part of the current expenses of the institution, and costs for modernization and reconstruction are attributed to the increase in the initial cost of fixed assets.

Depending on whether repairs or modernizations were carried out, income tax is calculated (provided that the work was carried out using funds received from business activities) and the intended use of budget funds, since modernization and repair expenses are reflected according to different KOSGU codes. If a fixed asset was acquired through entrepreneurial activity, the costs of repairing these objects reduce the income tax base as part of other expenses (clause 1 of Article 260 Tax Code RF (hereinafter referred to as the Tax Code of the Russian Federation)).

The institution has the right to dispose of the net profit received from business activities at its own discretion after paying income tax to the budget. Therefore, you must first pay income tax, and the remaining profit can be used to repair fixed assets.

For your information

During repairs, reconstruction and modernization, work that is similar in nature can be performed; it is not always easy to distribute them by type, and inspection bodies find many mistakes made by accountants when reflecting these operations.

It is necessary to determine the types of work in order to plan the expenditure budget, correctly attribute costs to items (sub-items of KOSGU), and use budgetary and extra-budgetary funds for their intended purpose.

Repair- this is a set of works to eliminate malfunctions, restore the operability of non-financial asset objects, maintain technical, economic and operational indicators (useful life, power, quality of use) at the originally intended level, i.e. this is the restoration of the functions of fixed assets for their further use . Repair involves preventive measures, elimination of damage and malfunctions, replacement of worn structures and parts.

Note!

Although during the repair process individual parts of the fixed asset can be replaced with more modern and durable ones, such an event is not associated with a change in the important technical and economic indicators of the fixed asset.

Depending on the volume and nature of the work performed, repairs can be current or major. They differ in complexity, volume, deadline and frequency.

Maintenance is carried out several times a year, capital - no more than once a year or less often. During routine repairs, individual parts are replaced; during major repairs, the object is dismantled and faulty components are replaced. During routine repairs, minor faults discovered during the daily use of the fixed asset are eliminated, while the object practically does not go out of service. Current repairs are work to systematically and timely protect OS objects from premature wear and tear by carrying out preventive measures.

During major repairs restore lost original characteristics, eliminate malfunctions, replacing worn parts and components.

For your information

IN budget classification and there are no differences in the procedure for maintaining budget accounting between current and major repairs, so there is no need to differentiate such expenses.

Modernization- this is a set of works to improve an object of fixed assets, to increase the technical level and economic characteristics of the object by replacing its structural elements and systems with more advanced ones (for example, installing a larger amount of RAM on a computer).

For your information

Modernization involves replacing components, and the replaced part must be in good working order before replacement. If during the work a faulty unit is replaced, then such work is not a modernization, but a repair.

Reconstruction- this is a change in the parameters of capital construction projects, their parts (height, number of floors, area, production capacity indicators, volume) and the quality of engineering and technical support.

The concept of reconstruction is applicable only to capital construction projects (buildings, structures). It involves changing the parameters of an object. Reconstruction also includes improving the quality of engineering and technical support.

Retrofitting- addition of fixed assets with new parts, parts and other mechanisms that were previously absent, which will form a single whole with this equipment, give it new additional functions or change performance indicators. Their separate use will be impossible.

Completion- this is the construction of new parts to a fixed asset (usually real estate). In this case, new parts must be inseparable from the main asset itself without causing damage.

Repair planning

To determine which category of expenses to include (repair, reconstruction, modernization or additional equipment), first of all you need to find out what type of work needs to be done to restore fixed assets:

• if work is carried out to restore operability, maintain technical characteristics or external changes that do not affect the change of the fixed asset object to its original functions, then this is a repair;
• if work is carried out to improve the basic characteristics and add new functions of a serviceable object, then this type of work should be classified as reconstruction, modernization or retrofitting.

In this case, you need to determine the purpose of the operation:

If replacement of units or parts is necessary, this is modernization (reconstruction);

If components and parts are added to the object - additional equipment (completion).

As a rule, in organizations, by order, those responsible for the operation of property are appointed (for example, the head of the laboratory is responsible for laboratory equipment, a metrologist is responsible for measuring instruments, etc.). Their responsibilities include, among other things, drawing up requests for repairs or modernization for the upcoming financial year.

The organization develops the application form independently.

Applications are approved by the head of the institution.

Based on applications, the economic department plans amounts by type of repair in the estimate of income and expenses. Each planned type of expense must be justified. This will make it possible to draw up a work plan, conclude agreements with suppliers for carrying out repair work, systematize the institution’s activities related to the maintenance and servicing of property, guarantee the continuity of the production process, and ensure the efficiency of the institution’s core activities.

Fragments of applications for the structural unit (laboratory for monitoring physical and chemical factors) are presented in the table.

Fragments of applications for repairs of fixed assets

We conclude contracts for the performance of work on the restoration of fixed assets

When concluding contracts with suppliers and contractors for repair work, it is necessary to determine what type of work to restore fixed assets is provided for in this contract in order to correctly assign costs to KOSGU items.

If actions or events are planned that will increase the cost of fixed assets (reconstruction, modernization, etc.), you should use code 310 KOSGU “Increase in the cost of fixed assets”, but if you are talking about repairing a faulty fixed asset - code 225 KOSGU “Works, property maintenance services."

Within the framework of one contract, various types of work may be provided, therefore, in the “Subject of the contract” section, the costs of the corresponding types of work should be indicated separately. The contractor must prepare various reporting documents for the work performed.

We reflect expenses for current, medium and major repairs in accounting

Expenses for current, medium and major repairs of fixed assets are taken into account as part of the current expenses of the institution under subarticle 225 of KOSGU “Works, services for property maintenance.” Let us note that the costs of purchasing spare parts (construction materials) are reflected not under subarticle 225, but under subarticle 340 of the KOSGU “Increase in the cost of inventories”; the write-off of consumed materials is reflected under subarticle 272 of the KOSGU “Consumption of inventories”.

Note!

This rule does not apply if the cost of the materials used is included in the overall repair estimate and is taken into account by the contractor when drawing up the acceptance certificate for the work performed.

Costs for property repairs are reflected in account 0.109.61.225 “Costs of work, services for maintaining property in cost finished products, works, services".

If the costs of repairs are uneven throughout the year, they must first be reflected in account 0.401.50.000 “Deferred expenses” with subsequent even write-off (clause 302 of the Instructions for the use of the Unified Chart of Accounts for public authorities, local governments, government bodies state off-budget funds, state academies of sciences, state (municipal) institutions, approved by Order of the Ministry of Finance of Russia dated December 1, 2010 No. 157n (as amended on August 6, 2015; hereinafter referred to as Instruction No. 157n)).

The spare parts remaining after the repair must be capitalized; this will be reflected in the accounting records by the following entries:

Debit of account 0.105.00.000 “Inventories” (according to the corresponding analytical accounts) Credit of account 0.401.10.180 “Other income”.

Costs that increase the cost of spare parts (such as the cost of delivering them to the institution or bringing them into a condition suitable for use) are first accumulated in account 0.106.00.000 “Investments in non-financial assets” (according to the corresponding analytical accounts).

After the cost of spare parts is finalized, it is written off to account 0.105.00.000 (according to the corresponding analytical accounts).

Situation 1

The institution entered into an agreement to repair a copy machine using funds from business activities. During the repair, the worn paper pickup roller was replaced with a new roller.

The costs of the transaction should be reflected in the following accounting entry:

Debit account 2.109.61.225 Credit account 2.302.25.730.

Replacing a worn roller did not affect the improvement of the technical level and technical characteristics of the copier, so equipment repairs are taken into account as part of the institution’s operating expenses.

Modernization of fixed assets

During operation, fixed assets wear out morally and physically. Modernization is one way to restore them.

If during modernization the initial indicators of the functions of a fixed asset are improved or increased (useful life, power or other technical characteristics), then the costs for them increase the initial cost after completion of all work.

The completion of restoration work is formalized by an act of acceptance and delivery of modernized facilities, which indicates data on changes in the technical characteristics and cost of the fixed asset. Based on the act, costs are written off to increase the value of fixed assets in the debit of account 0.101.00.000 “Fixed assets” (according to the corresponding analytical accounts).

2 ways to modernize fixed assets:

1) economic (with the institution’s own resources);

2) contracting (with the involvement of third-party organizations, entrepreneurs, citizens).

Documenting

All business transactions must be confirmed by primary documents (Part 1, Article 9 of the Federal Law of December 6, 2011 No. 402-FZ “On Accounting”, clause 7 of the Instructions for the Unified Chart of Accounts No. 157n), therefore an order should be issued signed by the manager institutions on modernization of fixed assets.

The order must indicate the reasons, timing of modernization and those responsible for its implementation.

After the modernization, an act of acceptance and delivery of modernized fixed assets is drawn up (according to form No. OS-3 (0306002)). If the modernization was carried out economically - in one copy, by contract - in two: for yourself and for the contractor.

The act reflects:

• cost of the OS object before modernization;
• amount of costs;
• the cost of the fixed asset after the work has been completed.

Based on the act, accumulated costs are written off on account 0.106.00.00 “Investments in non-financial assets” and entries are made in the inventory card. The executed deed is signed by:

• members of the commission for the receipt and disposal of non-financial assets created in the organization;
• employees responsible for the modernization of fixed assets, or representatives of the contractor;
• employees responsible for the safety of fixed assets after modernization.

The signed act is approved by the head of the institution, after which the act is transferred to the accounting department.

Note!

If the contractor carried out the modernization of a building, structure or premises, these works are classified as construction and installation works, therefore, in addition to the act, an acceptance certificate in form No. KS-2 and a certificate of the cost of work performed and expenses in form No. KS-3 (approved by the Resolution) should be signed Goskomstat of Russia dated November 11, 1999 No. 100).

When concluding an agreement on the restoration of a fixed asset, technical documentation and construction estimates must be drawn up for all work (Article 743 of the Civil Code of the Russian Federation).

We reflect expenses in accounting

Costs for completion, additional equipment, reconstruction and modernization of fixed assets are preliminarily reflected and accumulated in the debit of account 0.106.00.000 “Investments in non-financial assets” (according to the corresponding analytical accounts). This account reflects all costs for this work:

• cost of materials used;
• depreciation of machinery and equipment used to carry out the work;
• wages of those involved in completion, reconstruction or modernization and social contributions from it;
• expenses for paying for third-party services, etc.

After completion of all work and delivery of the completed (retrofitted, reconstructed or modernized) fixed asset, these costs are written off to increase its value in the Debit of account 0.101.00.000 “Fixed assets” (according to the corresponding analytical accounts).

Let's consider the procedure for reflecting in accounting the costs of modernizing a fixed asset.

Situation 2

In August-September 2016, the Federal Budgetary Institution of Health "Center for Hygiene and Epidemiology" carried out the modernization of the laboratory equipment "GP Sterilizer" by contract using funds received from business activities.

The cost of the work performed by the contractor is RUB 70,800, including VAT - RUB 10,800.

The acceptance certificate for the completed work was signed in October.

The institution pays income tax quarterly. Accounting and tax accounting data are the same.

The initial cost of the equipment at which it was accepted for accounting is 504,000 rubles. Listed as particularly valuable movable property. When accepted for accounting, the useful life was set at 7 years (84 months). Depreciation is calculated using the straight-line method.

For accounting purposes:

• annual depreciation rate - 14.28572% (1/7 × 100);
• annual depreciation amount - 72,000 rubles. (RUB 504,000 × 14.28572%);
• monthly depreciation amount is 6,000 rubles/month. (RUB 72,000 / 12 months).

Since the modernization lasted less than 12 months, during the period of its implementation the accountant did not stop accruing depreciation on laboratory equipment.

The modernization did not lead to an increase in the useful life of the equipment, therefore, for accounting and tax purposes, the useful life of the modernized equipment was not revised.

During the period of modernization of the equipment of the GP Sterilizer, the following accounting operations should be performed:

in August-September:

Debit account 2.109.61.271 Credit account 2.104.24.410 - 6000 rub. — depreciation was accrued on the equipment being modernized;

in October:

Debit account 2.106.21.310 Credit account 2.302.31.730 - 60,000 rub. (RUB 70,800 -RUB 10,800) - the cost of the contractor’s work to modernize the fixed asset is taken into account;

Debit account 2.210.10.560 Credit account 2.302.31.730 - 10,800 rub. — VAT is taken into account on the cost of the contractor’s work;

Debit account 2.303.04.830 Credit account 2.210.10.660 - 10,800 rub. — VAT is accepted for deduction;

Debit account 2.302.31.830 Credit account 2.201.11.610 - 70,800 rub. — payment has been made for the contractor’s work;

Account credit 18 (KOSGU code 310) - RUB 70,800. — disposal reflected Money from the institution's account;

Debit account 2.109.61.271 Credit account 2.104.24.410 - 6,000 rub. — depreciation was accrued on the equipment being modernized;

Debit account 2.101.24.310 Credit account 2.106.21.310 - 60,000 rub. — the initial cost of the equipment was increased by the amount of the cost of work on its modernization.

The initial cost of the equipment, taking into account the costs of modernization, will be 564,000 rubles. (RUB 504,000 + RUB 60,000).

For accounting purposes:

• annual depreciation amount - 80,571.46 rubles. (RUB 564,000 × 14.28572%);
• monthly depreciation amount - 6714.29 rubles/month. (RUB 80,571.46 / 12 months).

From October, depreciation charges will be reflected by posting:

Debit account 2.109.61.271 Credit account 2.104.24.410 - 6714.29 rub. — depreciation has been accrued for the equipment being modernized.

The costs of modernization must be reflected in primary documents for accounting of fixed assets and in the inventory card for accounting for fixed assets.

Question on topic

Repair or modernization?

The organization purchased new monitors to replace old inoperative ones. How to take into account such costs - as modernization or repairs?

Purchased parts of computer equipment (including monitors) cannot be separate objects of fixed assets, since they perform their functions only as part of an associated set. Computers are accounted for as single inventory items (letters of the Ministry of Finance of Russia dated 02.06.2010 No. 03-03-06/2110, 06.11.2009 No. 03-03-06/4/95). This procedure applies to both tax and accounting.

Spare parts necessary for the repair and replacement of worn parts in equipment and machines are classified as inventories, which means that the costs of their acquisition are included in Article 340 of KOSGU “Increase in the cost of inventories.”

It follows from this that the operation of replacing an inoperative monitor should be regarded as a repair of computer equipment, the costs of which do not increase the initial cost. Consequently, the cost of spare parts that are used in the repair process is charged to the institution’s expense accounts 0.106.61.000, or 0.106.71.000, or 0.109.81.000, or 0.109.91.000 under code 272 KOSGU “Consumption of inventories.”

If repair work is carried out by a third-party organization, the costs of paying for its services should also be taken into account on expense accounts under code 225 KOSGU “Works, services for property maintenance”

The same rules apply to other parts of computer equipment: network cards, DVD drive, motherboard, etc.

______________________

The procedure for accounting for operations to replace old, but serviceable parts of a fixed asset with new and more modern ones is not defined by law. As a rule, if such a replacement leads to an increase in the technical characteristics of the object, then the work is considered as an upgrade and the cost of used parts, the costs of their installation are included in the initial cost of the computer (for example, replacing an old monitor with a new one with a larger screen area, increasing RAM or hard memory ).

If, as a result of the work, the technical characteristics of the fixed asset do not improve, the costs of the work are considered as repairs, reflected in the cost accounts of accounting.

Situation 3

FBUZ replaced the old monitor with a new one with a larger screen area and improved technical characteristics. The work was carried out using funds from business activities.

The cost of a new monitor is RUB 31,860. (including VAT 4860 rub.).

Delivery costs by transport company - 1180 rubles. (including VAT 180 rub.).

The initial cost of the old monitor is 10,000 rubles, depreciation is charged 8,000 rubles.

The market price of the old monitor on the date of modernization work is 3,500 rubles.

Let's reflect the costs of modernization:

Debit account 2.106.24.340 Credit account 2.302.34.730 - 27,000 rub. — expenses for the purchase of the monitor and accounts payable to the supplier are reflected;

Debit account 2.210.10.560 Credit account 2.302.34.730 - 4680 rub. — “input” VAT is taken into account on the cost of the new monitor;

Debit account 2.302.34.830 Credit account 2.201.11.610 - 31,860 rub. — payment for the purchased new monitor was made from the institution’s personal account in the treasury;

Debit account 2.106.24.340 Credit account 2.302.22.730 - 1000 rub. — the costs of delivering the monitor and accounts payable to the transport company are reflected;

Debit account 2.210.10.560 Credit account 2.302.22.730 - 180 rub. — “input VAT” on transport services is taken into account;

Debit account 2.302.22.830 Credit account 2.201.11.610 - 1180 rub. — expenses for delivery of the monitor have been paid;

Debit account 2.105.26.340 Credit account 2.106.24.340 - 28,000 rub. (27,000 + 1000) — the initial cost of the monitor is taken into account as part of inventory;

Debit account 2.303.04.830 Credit account 2.210.10.660 - 4860 rub. (4680 + 180) - accepted for deduction of VAT on the cost of the monitor and the cost of transport services;

Debit account 2.104.24.410 Credit account 2.101.24.410 - 8000 rub. — depreciation of the old monitor was written off;

Debit account 2.401.10.172 Credit account 2.101.24.410 - 2000 (10,000 - 8000) rub. — the residual value of the old monitor is written off;

Debit account 2.105.36.340 Credit account 2.401.10.180 - 3500 rub. — the old monitor was capitalized at the market price;

Debit account 2.106.21.310 Credit account 2.105.26.440 - 28,000 rub. — the cost of a new monitor was written off to increase the cost of the computer and increase investments in fixed assets;

Debit account 2.101.24.310 Credit account 2.106.21.310 - 28,000 rub. — the costs of upgrading the computer are included in the initial cost.

conclusions

The institution must have an internal regulatory document (for example, Regulations), which will determine what is considered a major overhaul and what is considered a current one.

The types of work to restore fixed assets for the correct allocation of costs to the relevant items of KOSGU should be determined at the initial stage of planning the expenditure budget.

The types of repair work must be differentiated; any type of work must be justified and documented.

Costs should be reflected correctly in accounting: expenses for current, medium and major repairs of fixed assets are taken into account as part of the current expenses of the institution; costs for additional equipment, reconstruction, and modernization are capital, therefore, expenses for them are written off to increase the initial cost of fixed assets.

S. S. Velizhanskaya,
deputy chief accountant of the FFBUZ "Center for Hygiene and Epidemiology in the Sverdlovsk Region in the Oktyabrsky and Kirovsky districts of the city of Yekaterinburg"