Calculation of residual value of fixed assets

The essence of the concept of residual value

Residual value is derived for non-current asset type. It represents the initial purchase price adjusted to the value expression of the degree of deterioration of the property. The level of wear and tear is regulated through depreciation charges, which are determined cumulatively over the period of operation of the fixed asset.

FOR REFERENCE! Residual value is the amount that will be expensed when the asset is written off the balance sheet.

The residual value indicator is the basis for determining property tax liabilities. In management accounting, the monetary expression of the current price of an asset is required to calculate the level of operating efficiency of the fixed assets available to the company. The residual value is required:

• when concluding exchange transactions, if the subject of the agreement is property assets;
• when selling equipment and other types of fixed assets;
• when applying for a loan for which the collateral is the property of the enterprise;
• in the case of using fixed assets in the form of a contribution to the authorized capital;
• to determine the amount of the insured amount, if necessary, insure the organization’s property;
• to provide judicial authorities in the form of reference information during proceedings on a property dispute;
• at the beginning of measures for bankruptcy of the institution.

Legislative regulation

The accounting process for basic business production assets is prescribed in various regulatory documents. They not only clarify the calculation procedure itself, but also indicate the tasks of tracking these indicators, the conditions for recognizing funds as fixed assets, the path of value formation, etc. The main documents that the taxpayer (entrepreneur, accountant) focuses on are:

• PBU 6/01 “Accounting for fixed assets” dated March 30, 2001 No. 26n;
• Methodology for accounting of fixed assets dated October 13, 2003 No. 91n.

When calculating property tax, you should rely on the following provisions of the Tax Code of the Russian Federation and information from the Ministry of Finance of the Russian Federation regarding the average annual accounting of the value of assets:

• paragraph 4 art. 376 Tax Code of the Russian Federation dated August 5, 2000 No. 117-FZ.;
• Letter from the Ministry of Finance of the Russian Federation dated July 15, 2011. No. 03-05-05-01/55.

Distinctive features of residual valuation

When characterizing non-current assets, several types of valuations are used. These include initial and residual. The first type is the amount a business pays for an asset when it purchases it. This indicator includes the actual costs incurred due to the transaction:

• payment of the cost of the contract object;
• transportation costs to the destination;
• repayment of customs duties, duties, registration fees;
• the estimated cost of services received for installation, assembly, adjustment, and modification of purchased equipment.

The initial value is characterized by the constancy of its monetary measurement. From year to year, this indicator remains unchanged in the accounting data. Adjustments are possible in cases of revaluation or depreciation of an asset, modernization of equipment, partial destruction and liquidation.

Residual value does not show signs of permanence. Its meaning changes systematically. The basis for its calculation is the initial assessment. Every month the remaining price becomes smaller. Based on the residual value, property owners determine the moment when it is necessary to decommission a non-current asset. The initial assessment is formed at the time the asset is accepted for accounting, and the residual assessment is formed during operation.

Calculation method

The final value of the residual valuation of non-current assets is displayed as of a specific date. Such a threshold date may be the day of reporting or the end of the reporting interval, the date of the inventory. There are two types of value in accounting registers:

• original variety;
• restorative look.

The residual must always be determined by calculation. The basic formula for calculating it can look like:

1. Initial assessment – ​​The amount of accumulated depreciation for the entire period that the asset is in operation.
2. The size of the replacement price is the depreciation accumulated at the time of settlement transactions.

NOTE! The calculation method based on replacement cost is relevant for objects that were revalued at the reporting date.

A more complex calculation method involves the participation of the depreciation bonus indicator. It is used in tax accounting. In this case, the algorithm of actions will be as follows:

• the total monetary value of the depreciation type of premium is subtracted from the value of the initial assessment;
• from the resulting difference the amount of depreciation deductions derived for one monthly interval is subtracted;
• the remainder of the amount is multiplied with a number equal to the total number of months the object in question is in operation.

Depreciation charges are typical for fixed assets, the procedure for their calculation is regulated by PBU 6/01, and for the intangible type of assets - the regulation of operations falls within the sphere of influence of PBU 14/2007.

What value is considered residual?

Fixed assets (FPE) are accepted for accounting at the original price, which includes all costs of acquiring and bringing the object to readiness for its use.

Non-refundable taxes are included in acquisition costs if the person is not the payer. For example, purchasing equipment worth RUB 120,000. (including VAT RUB 20,000) will require the following postings:

The initial price of an asset is reflected in the debit of account 01:

• in the first case it is 100,000 rubles;
• in the second – 120,000 rubles.

If a property is revalued, its value becomes replacement value.

The cost of fixed assets is repaid by depreciation, which is summed up under the credit of account 02. The procedure for calculating depreciation of fixed assets is given in PBU 6/01.

In some cases, the book value (residual) value of the object is of interest. To do this, calculate the residual value, reducing the initial (or replacement) price of the object by accumulated depreciation.

Residual price estimate

Legislation allows commercial business entities to revaluate the assets they own. The frequency of such manipulations should not be more than once per year. This operation is carried out at the end of the reporting year. For revaluation, groups of similar objects are formed. The current value is taken as a basis.

If the revaluation of property assets was carried out once, then in the future it will be carried out on a regular basis. This is necessary to create conditions for the correspondence of the price of the object in the accounting data with the cost assessment of the restoration type. Scheme of actions of an accountant when revaluing property:

• recalculation of the asset value;
• recalculation of depreciation for the facility;
• reflection of updated data in accounting separately from other indicators;
• the amount of the additional valuation is entered into additional capital;
• the amount of the markdown is equal to other costs that are used to derive the financial result of the enterprise.

In the balance sheet, the results of revaluation are shown as a separate line.

IMPORTANT! Revaluation can be initiated only in relation to assets that the organization owns by right of ownership.

Techniques for changing the estimated value are used by enterprises to bring the accounting price to the market value. This is necessary to make the accounting information realistic in the context of current market trends. For example, a year ago the company bought a computer:

• it has an initial cost of 87,000 rubles;
• depreciation on it was accrued in the total amount of 7,500 rubles;
• The estimated residual value is RUB 79,500. (87000–7500);
• the forecast price at which the company could sell the equipment at the current moment does not exceed the threshold of 66,000 rubles;
• to bring the book price into line with the realities of market conditions, a revaluation is carried out in accounting;
• the result of the change in value at the end of the reporting period was a markdown in the amount of 13,500 rubles;
• the replacement assessed value is equal to the market price of used computer equipment.

NOTE! Revaluation is always voluntary. Legislative norms do not oblige property owners to make markdowns or revaluations; accounting rules give enterprise management the authority to independently make decisions on the issue of value adjustment.

Accounting Features

The residual value can be calculated by comparing the balances of several accounts. To do this, you need to know the totals of turnover on a specific date for synthetic accounts 01 and 02. Account 01 is used to indicate the initial assessment of property assets in the form of fixed assets. On it, all expenses incurred by the company when purchasing or creating an object are accumulated in debit turnover. To calculate the residual value, only the debit balance of this account needs to be taken into account.

Account 02 systematizes data on accrued depreciation for fixed assets. Depreciation-type deductions made on a regular basis are entered into the account credit. They accumulate until the asset is written off from the balance sheet of the enterprise. The credit balance reflects the total amount of depreciation generated during the operating period.

When calculating the residual value of the debit balance on account 01, subtract the credit balance on account 02. If depreciation charges were made not only for assets listed on account 01, but also for objects from among profitable investments in material assets, it is necessary to separate such accruals from total amount. This approach is implemented in order to determine the residual value of not only a group of fixed assets, but also profitable investments. These categories of indicators are reflected in the balance sheet separately from each other:

• line of the balance sheet form number 1150 displays the value of the residual estimated value generated for account 01;
• cell with code 1160 shows the amount of residual value for profitable investments made in relation to a number of material assets.

If it is necessary to determine the residual value for a group of assets from among intangible assets, the data on accounts 04 and 05 is taken as a basis. The debit of account 04 collects the amounts for the cost of the original type of intangible asset, and credit 05 reflects the accumulated depreciation. The calculation is carried out by subtracting the credit balance of account 05 from the debit balance of account 04.

When selling property assets, the residual value must be indicated in accounting. It must be written off separately from depreciation. As a result, it turns out that the entire original cost of the sold object will also be written off. Correspondence when transferring ownership of fixed assets to third parties will be as follows:

• D91–K01 , the record records the fact of writing off the residual value;
• D02–K01 , accumulated amounts of depreciation charges in relation to a separate asset are written off from the balance sheet.

For transactions characterizing the disposal of fixed assets, the analytical subaccount “Disposal” is entered into account 01. This is necessary to distinguish between the original cost and the selling price of the property.

When selling fixed assets, simplifiers can show income in accounting by the date of actual receipt of revenue into the current account. Under the general tax system, the result of writing off assets can be a profit or a loss. In the latter case, the accountant, when conducting a transaction for the sale of property, shows the result obtained by debiting account 99 and crediting account 91.

According to tax accounting rules, a loss must be indicated in expenses in equal parts throughout the calculation interval. This period of time is determined in months. To derive it, it is necessary to subtract the actual service life indicator from the estimated operating period of the asset (in months). This calculated value can be adjusted if, in the process of applying the depreciation bonus, decreasing or increasing coefficient values ​​were introduced.

Nuances also arise when using the accelerated method of calculating depreciation. Letter from the Ministry of Finance dated 08/04/2009. No. 03-03-06/1/511 recommends reducing the billing period in such situations. In situations where a reduction factor has been applied, the calculated rate of the design interval must be adjusted upward. The justification is the text of the Letter of the Ministry of Finance dated November 23, 2011. No. 03-03-06/2/180.

An example of recording the sale of an asset in accounting

The company purchased new printers. For this reason, the company's management decided to sell one printer, which had been used by the accounting department for 2 years. The initial cost of the technical equipment in accounting is fixed at 55,050 rubles. During the period of use of the equipment, depreciation was charged on it in the amount of 28,000 rubles. The estimated selling price is RUB 34,220. After completing a transaction to sell a used printer, the accountant makes the following entries:

• D62–K91 , 34,220 rubles, revenue from the sale of the printer is shown;
• D91–K68/VAT , 5220 rubles, VAT has been charged at a rate of 18%;
• D01/Disposal–K01 , 55,050 rubles, the initial valuation recorded on the books was written off;
• D02–K01/Disposal , 28,000 rubles, indicates write-off depreciation accumulated over 2 years of actual operation;
• D91–K01/Disposal , 27,050 rub. (55050 – 28000), the residual value was written off as expenses in accounting transactions.

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Recognition and valuation of fixed assets for the purposes of budget planning must comply with the principles set out in PBU 6/01, Guidelines for accounting of fixed assets of the Ministry of Finance of the Russian Federation and the Company's Accounting Policy.

General provisions

The currency for planning fixed assets (hereinafter referred to as Fixed Assets) is the Russian ruble. The minimum planning unit is a group of fixed assets allocated for budget planning purposes, however, if it is necessary to increase the accuracy of planning, planning for each inventory fixed asset object is allowed. OS planning is carried out in cost terms; planning is not carried out in physical (volume) terms.

In the management chart of accounts, for each group of fixed assets, accounts must be allocated for planning the initial cost of fixed assets in the group (group of accounts 0100) and the accumulated depreciation on them (group of accounts 0200).

The following groups of fixed assets are distinguished:

0101 Buildings and structures

Buildings (OKOF code 11,000), structures (12,000) (except for structures included in the “Transmission devices” group), dwellings (13,000).

0102 Transmission devices

Power lines, communication lines, pipelines, gas pipelines, thermal main networks, sewerage structures, access roads.

0103 Vehicles with a long service life

Trucks with a carrying capacity of more than 15 tons (OKOF code 15 3410197), tractor vehicles, dry cargo and liquid vessels (15 3511), diesel locomotives and wagons (15 3520), machines for the repair and operation of railway tracks and repair of rolling stock (15 3520).

0104 Vehicles other than passenger cars

Trucks with a carrying capacity of up to 15 tons (OKOF code 15 3410195, 3410196), special machines and equipment for cleaning (14 3410), buses (15 3410270), trailers and semi-trailers (15 3420), trolleys (15 3599), other vehicles, not included in the groups “Vehicles with a long service life” and “Passenger transport”.

0105 Passenger transport

Passenger cars and minibuses.

0106 Power machines and equipment

Electric motors of all types (OKOF code 14 3112, 14 3113), large-sized electrical machines (14 3114), electrical transformers (14 3115), low-voltage and high-voltage electrical equipment (14 3120).

0107 Working machines and equipment with a long service life

Electric furnaces and electric furnace units (OKOF code 14 2914), cranes, elevators, loaders (14 2915), machine tools of all types (14 2922), machinery and equipment for metallurgy (14 2923), steam boilers (14 2813), technological equipment for production building materials, cement, reinforced concrete structures (14 2924), radio broadcasting, radio communications and television equipment (14 3221), general reception wire communication equipment (14 3222), cargo storage containers (16 2915), hydraulic and pneumatic automation devices (code OKOF 14 2916), technical equipment for mechanical engineering (14 2896).

0108 Working machines and equipment

Pumps and compressors (OKOF code 14 2912), oilfield and geological exploration drilling equipment (14 2928), process equipment (14 2941).

0109 Furniture and office equipment

Furniture of all types (OKOF code 16 3311, 16 3612, 16 3695), laboratory equipment, inventory of cultural institutions (16 3696), telephones and devices, portable radios, other personal communications equipment, office equipment (shredders, stitching machines, laminators and etc.).

0110 Computer technology

Electronic computing equipment (OKOF code 14 302), including local area networks, and copying equipment (14 3010210).

0111 Measuring and regulating devices and instruments

Measuring instruments for general use (OKOF code 14 3312), equipment for monitoring technological processes (14 3313), testing equipment (14 3314), instruments for scientific research (14 3315), nuclear and isotope instruments (14 33191), optical instruments (14 3321).

0112 Tool

Tools for construction and installation work (OKOF code 14 2947), jackhammers (14 2924186).

0119 Other fixed assets

Other machinery and equipment (OKOF code 14,000), not included in other groups, industrial and household equipment (16,000), not included in other groups, other fixed assets: working, productive and breeding livestock (17,000), perennial plantings ( 18,000), material fixed assets not included in other groups (19,000).

The criteria for inclusion in the group are:

• use of fixed assets in the Company's operations;
• useful life of fixed assets (in accordance with the Decree of the Government of the Russian Federation “On the classification of fixed assets included in depreciation groups”).

The classification of fixed assets into the groups listed above should be carried out jointly by the company's planning and accounting services.

• 1
• Forward
• In the end

Sale at residual value

When selling new or used equipment and other types of property assets of non-current funds, a standard set of documentation is prepared. To justify the transaction you will need:

• consignment note in the form TORG-12;
• TTN;
• an invoice issued within 5 days after the grounds for charging VAT arise;
• act of acceptance and transfer of property, the form of the act can be based on the OS-1 or OS-1a form template.

In the acts, the parties indicate the day on which the buyer actually received the asset transferred to him. This form confirms the fact of transfer of ownership from one person to another business entity. After the sale of the property, notes are made on the inventory card characterizing the movement of the object and its disposal.

REMEMBER! The moment when income should be reflected does not coincide according to accounting and tax records.

In accounting, you need to focus on the date on which the buyer carried out state registration of ownership rights to the property. The norm is disclosed in PBU 9/99. In tax accounting, income receipts are recognized upon signing the transfer and acceptance certificate. The justification is given in Art. 271 Tax Code of the Russian Federation.

Due to the temporary differences that arise, the selling party is given the opportunity to exclude the object transferred to third parties from the tax base when calculating property tax. The norm applies to assets that have in fact already been given away, but the buyer did not have time to register the property. In this situation, the seller's property must be excluded to prevent misrepresentation of property tax liability. The rule was approved by the Letter of the Ministry of Finance dated March 22, 2011. No. 07-02-10/20.

In accounting for correspondence in the event of a delay in state registration of the transfer of ownership, the ownership rights will be as follows:

• D01/Disposal – K01 , disposal of the property from the seller is recorded;
• D02–K01/Disposal , write-off of depreciation amounts;
• D45–K01/Disposal , indicates the actual disposal of property;
• D62–K91 , shows the volume of proceeds;
• D91–K68, VAT;
• D91–K45 , the buyer re-registered ownership rights to himself, the seller had grounds to write off the asset from the balance sheet as expenses in the amount of the residual value.

Cases of sale of assets at a value below residual value

It is legally permitted to put up property assets for sale at a price that is lower than the residual value recorded in accounting. This situation is associated with the occurrence of a loss as a result of the transaction. The resulting damage is entered into accounting in full as part of costs, linked to the month when the property was sold. The norm is confirmed by the provisions of PBU 10/99.

In tax accounting, damage begins to be written off from the month in which the property alienation transaction was completed. But the entire amount of damage cannot be recognized at once. The amount of the loss is divided into equal parts and recorded monthly in the accounting registers. A consequence of differences in tax and accounting accounting is the formation of a deferred tax asset. Its reflection in accounting is regulated by PBU 18/02.

For simplifiers, nuances arise if the object of taxation “income minus costs” is applied. At the time of purchasing an asset, a business entity uses the simplified tax system to show the price paid as an expense in full. When the object is subsequently resold, costs cannot arise again. The entire proceeds are included in income. The amount of damage cannot be classified as a cost; it is not included in the tax list of allowed expenses.