Revaluation of property: accounting and taxation of results

Only three times did the USSR Government issue orders to revaluate fixed assets. The revaluations of 25, 60 and 72 were planned events, mandatory for the entire country. Organizations in all industries were given instructions detailing what needed to be revalued and by how much, and everyone unanimously multiplied the cost of fixed assets by the coefficients assigned by the State Planning Committee.

After some time, the All-Union Statistical Office “with a feeling of deep satisfaction” reported that the capital-labor ratio of the country’s industry had increased by so many percent.

Accountants of older generations still remember how this happened in the post-Soviet period. The depreciation of the Russian monetary unit proceeded at such a pace that the most incredible situations occurred in accounting.

A machine purchased six months ago could be listed at a cost that is orders of magnitude less than the same machine purchased today. Empty buildings of bankrupt factories, due to the fact that the Soviet price was still listed on their inventory card, were sold cheaper than a passenger car, and passenger cars left the balance sheet of enterprises for the price of a baby stroller.

Council of Ministers resolutions on revaluations from 1992 to 1997 were issued with the frequency of New Year's matinees. Accounting departments routinely multiplied, bringing the cost characteristics of objects to something more or less uniform, but after a couple of months this recalculation became outdated.

Yes, more often than not in the history of our country this mechanism became a salutary patch for the holes of unsuitable economic policy. But this does not negate the real economic significance of revaluation as an essential tool in making management decisions.

Revaluation today

Today, the procedure for revaluation of fixed assets is no longer regulated by the state to the extent that it was previously regulated. The decision to conduct or not to conduct revaluations is made by the organization in the process of administering its financial and economic activities.

This condition is enshrined in paragraph 15 of PBU 6/01 “Accounting for fixed assets” (approved by order of the Ministry of Finance of Russia dated March 30, 2001 No. 26n) and is confirmed by the norms of the Tax Code Articles No. 256 “Depreciable property” and 257 “Procedure for determining the initial cost depreciable property."

At the same time, the independence of the organization in relation to revaluation does not mean that this process is completely spontaneous. The procedure for revaluation of fixed assets by an organization cannot go beyond the framework defined by the above and accompanying regulations, paragraph 44 “Methodological instructions on accounting for fixed assets” (approved by order of the Ministry of Finance of Russia dated October 13, 2010 No. 91n, as amended by November 27, 2006, October 25, December 24, 2010).

This means that in cases where a company needed to revaluate its existing property capital for any purpose, it can do this based on uniform rules. When deciding whether to carry out a revaluation, it is important to remember a number of key points. Let's look at them in order.

For what purpose are funds revalued?

First, let's understand the principles of revaluation of the main assets of enterprises and organizations.

The essence

Any enterprise uses various equipment for its activities, which is on the balance sheet.
However, the cost of operating equipment changes taking into account depreciation, mechanical wear and the general market situation. This nuance changes the price of units listed on the balance sheet. Let's give a simple example. Let's say a certain company bought a new machine worth 50,000 rubles. After 1.5 years, the cost of this equipment, taking into account depreciation, amounted to 43,000 rubles. However, the manufacturer of the machine in question has launched a new model with similar functions and lower cost. If we apply 1.5-year wear and tear to this modification, the price will be 30,000 rubles. This means that the company will not be able to sell the equipment on its balance sheet for 43,000 rubles. This indicates that fixed assets need to be revalued.

It follows that the revaluation of funds is the clarification of the price of assets, taking into account the real market value.

Is this event required?

To answer this question, you need to refer to the accounting provisions 6/01, approved by Order of the Ministry of Finance No. 26n. Paragraph 15 of this PBU states that an organization can revalue its own funds no more than once per calendar year. The wording “may” implies that the revaluation procedure is a right, but not an obligation, of enterprises.

If an organization revaluates its fixed assets, it must be guided by the provisions of Art. 256-257 Tax Code. These documents establish the following procedure and conditions for the revaluation of depreciable property:

• If the procedure was carried out at least once, this becomes an obligation, and revaluation is carried out regularly, at least at an annual interval;
• The results are documented at the end of the reporting period;
• The revalued objects must necessarily be the property of the enterprise;
• The procedure for holding the event is approved by the internal regulations of the organization;
• To carry out the procedure, an appropriate order is issued and a list of objects is compiled.

Methods of revaluation

Today, two methods are used to revaluate fixed assets:

1. Direct - the essence is that the cost is recalculated taking into account real market prices. Documents from the manufacturer, expert opinions, State Statistics Service data and information published in open sources can be used as a basis.
2. Index - based on fluctuations in market prices over the past year. Previously, such indices were established by the State Statistics Committee of the Russian Federation, but since 2001 the situation has changed. Now organizations carry out indexation on their own, using inflation data in a particular region.

Revaluation of fixed assets

Materiality threshold

Revaluation should be carried out if there is a significant difference between the book value of the object and the market, replacement cost of something similar to it. We highlighted the word “essential” for a reason. Despite the fact that the concept of materiality is not directly defined in the main regulations, it is a significant condition.

In Instructions No. 91-n, paragraph 44 “Methodological instructions on accounting for fixed assets” (approved by order of the Ministry of Finance of Russia dated October 13, 2010 No. 91n, as amended on November 27, 2006, October 25, December 24, 2010) there is a directly stated requirement to establish the significance of the difference between the cost of fixed assets at which they are listed on the balance sheet and the replacement cost.

In turn, the 5% materiality threshold was at one time defined in the explanatory part of the Reporting Procedure “Procedure for the Preparation and Presentation of Financial Statements” (approved by Order of the Ministry of Finance of Russia dated July 22, 2003 No. 67n, as amended by Orders of the Ministry of Finance of Russia dated December 31, 2004 No. 135n, dated September 18, 2006 No. 115n). Despite the fact that this document has lost force in terms of reporting forms, there is currently no other interpretation of the size of materiality, from which a logical conclusion can be drawn about its validity.

Let's give two simple examples.

• 1 case. The cost of fixed assets of a homogeneous group as of December 31, 2013 amounted to 1 million rubles; replacement cost of the group's assets as of December 31, 2013 was 1.08 million rubles. (1080000 - 1000000):1000000=.0.08 (8%)
• Case 2. The cost of fixed assets of a homogeneous group as of December 31, 2013 amounted to 1 million rubles; replacement cost of the group's assets as of December 31, 2013: RUB 1.025 million. (1025000 - 1000000):1000000=.0.025 (2.5%)

In the first case, the results of the revaluation will be reflected in the accounting accounts, since the difference of 8% is significant. In the second case, the difference of 2.5% is considered insignificant and no revaluation is made.

In principle, the absence of a strictly prescribed norm can also be interpreted in such a way that the organization has the right to independently establish a materiality criterion for changes in the value of fixed assets as a result of revaluation. If such a decision is made, the size of the materiality criterion should be specified when drawing up an order on accounting policies.

What is it for?

The purpose of revaluation is to ensure the value of fixed assets in accordance with market demands and reproduction conditions.

The organization is not obliged to carry out this process - it is its right. But if you decide to revaluate one day, you will have to carry out the whole process regularly so that the price in the balance sheet corresponds to the replacement price.

If in any year the cost of fixed assets does not differ significantly from the market value, the revaluation process does not need to be carried out.

In order to determine such a need, you must act in accordance with methodological instructions No. 91, which states that a threshold of 5% is considered a significant difference.

In addition, the revaluation task is as follows:

• attracting investments - knowledge of the real value of fixed assets will help to obtain additional injections as a loan or loan;
• in case of increasing the size of the authorized capital by issuing securities;
• for the purpose of conducting analysis to determine the cost of production and its price.

Regularity of revaluation

When making a decision on revaluation, it is imperative to take into account the fact that subsequently these particular fixed assets will have to be revalued regularly. The limitation on the frequency of revaluations is set as an annual interval.

It follows from this that a homogeneous group of fixed assets can be revalued no more than once a year. Both PBU and NK talk about this. However, it would be a mistake to assume that annual revaluation is the responsibility of the organization.

To determine the need for it, one should rely on the mechanism for identifying materiality described above.

Accounting: markdown

In accounting, the amount of depreciation for each fixed asset item is reflected in the following entries:

Debit 91-2 Credit 01 – the initial (replacement) cost of the fixed asset has been reduced;

Debit 02 Credit 91-1 – accrued depreciation on fixed assets has been reduced.

At the same time, for a fixed asset that was previously revalued, make these entries only for the amount of the depreciation, which exceeds the amount of additional capital formed during previous revaluations. Determine the amount of additional capital using analytical accounting data (for example, using a statement of the results of revaluation of fixed assets). Reflect the amount of depreciation of fixed assets within the amount of additional capital from previous additional valuations with the following entries:

Debit 83 subaccount “Revaluation of fixed assets” Credit 01 – the initial (replacement) cost of a fixed asset is reduced within the limits of additional capital formed during previous revaluations of this object;

Debit 02 Credit 83 subaccount “Revaluation of fixed assets” - the accrued depreciation on a fixed asset is reduced within the limits of additional capital formed during previous revaluations of this object.

This procedure for reflecting in accounting the results of the revaluation of fixed assets is established in paragraph 48 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n.

An example of how a primary depreciation of a fixed asset is reflected in accounting

As of December 31, Alpha LLC conducted an initial revaluation of the computer. The organization has no other office equipment.

Based on the results of the revaluation, the original cost of the computer should be reduced by 2000 rubles, and the amount of accrued depreciation – by 200 rubles.

Alpha's accountant made the following entries in the accounting records:

Debit 91-2 Credit 01 – 2000 rub. – the initial cost of the computer was reduced based on the results of revaluation;

Debit 02 Credit 91-1 – 200 rub. – the accrued amount of depreciation on the computer was reduced based on the results of the revaluation.

An example of how a subsequent depreciation of a fixed asset is reflected in accounting. Based on the results of the previous revaluation, the fixed asset was overvalued

As of December 31, Alpha LLC carried out a subsequent revaluation of the computer. The organization has no other office equipment.

Based on the results of the revaluation, the replacement cost of the computer should be reduced by 2000 rubles, and the amount of accrued depreciation – by 200 rubles. The total amount of the markdown was 1800 rubles. (2000 rub. – 200 rub.).

In connection with previous revaluations, additional capital in the amount of 800 rubles is listed on computer account 83.

Alpha's accountant made the following entries in the accounting records:

Debit 83 subaccount “Revaluation of fixed assets” Credit 01 – 889 rub. (2000 rubles × 800 rubles: 1800 rubles) – based on the results of the revaluation, the replacement cost of the computer was reduced within the limits of the additional capital formed during previous revaluations;

Debit 91-2 Credit 01 – 1111 rub. (2000 rubles – 889 rubles) – the replacement cost of the computer was reduced based on the results of the revaluation in excess of the additional capital formed during previous revaluations;

Debit 02 Credit 83 subaccount “Revaluation of fixed assets” – 89 rubles. (200 rubles × 800 rubles: 1800 rubles) – based on the results of the revaluation, the accrued amount of depreciation on the computer was reduced within the limits of the additional capital formed during previous revaluations;

Debit 02 Credit 91-1 – 111 rub. (200 rubles – 89 rubles) – based on the results of revaluation, the accrued amount of depreciation on the computer was reduced in excess of the additional capital formed during previous revaluations.

Revaluation method

Most sources explaining the procedure for revaluation still mention the possibility of using two methods - indexing or direct recalculation. This happens, apparently, due to inertia.

Yes, at one time there was a so-called IRIP (index of sales of enterprise property). This deflator index was put into effect by Decree of the Government of the Russian Federation. N 315 of March 21, 1996 and was regularly published in the official press. However, in 2002, in connection with the adoption of Decree of the Government of the Russian Federation of February 20, 2002 No. 121, Resolution No. 315 lost force, and other indices were not established, most likely due to the fact that Chapter 25 of the Tax Code, which came into force at the same time, does not provide for the use of IRIP .

Currently, in the latest edition of the PBU, the reference to the index method of revaluation is excluded from paragraph 15. Thus, at present, the procedure for revaluing fixed assets involves only the direct recalculation method.

The basis for direct revaluation is information obtained from the following sources:

• Information from companies producing identical objects;
• Information on price levels obtained from government organizations or special public sources;
• Expert assessment by independent specialists

conclusions

Recalculation of the cost of fixed assets is carried out in order to establish their real cost indicators at the current moment.

Conducting a revaluation of fixed assets is not a mandatory action for an enterprise, but it is permissible by law, since a legal entity has the right to obtain data regarding the real value of its property in order to determine information regarding the cost of objects as a whole, which are subject to taxation and depreciation.

All indicators entered into the act by the commission as a result of the process must be taken into account in tax and financial accounting, according to the type of revaluation and its results.

Revaluation algorithm

Revaluation of fixed assets is not a spontaneous event. To carry it out, a number of preparatory measures are necessary, including studying the availability of such objects, the accounting cost data of which is subject to adjustment.

An order for the organization formalizes the decision to conduct a revaluation, determines the composition of services or the circle of specialists that will be involved, and also approves the list of objects subject to revaluation. [goo_mid] The list of objects represents summary data on objects and includes such items as exact name, date of commissioning and membership in a certain homogeneous group.

Information and accounting information about the object is used as initial data:

• Initial or replacement (if the object has already been revalued in previous periods) cost as of the last day of the reporting year;
• The amount of depreciation charges made during the operation of the facility;
• Confirmed data on replacement cost as of the last day of the reporting year.

The last point should be emphasized. Previously, there was a rule about reflecting data on the revaluation as of January 1 of the year following the reporting year. Revaluation of a fixed asset is a recalculation of its original (replacement) book value and depreciation over the entire period of its operation.

Revaluation of fixed assets in IFRS

IFRS allows the cost of fixed assets accepted for accounting to be taken into account in the future in one of 2 ways (clause 29 of IFRS 16):

• at historical cost, when the carrying amount is determined as the difference between the historical cost and the amounts of accumulated depreciation plus impairment losses;

For more information on assessing impairment losses, see the material “IFRS No. 36 Impairment of Assets - Features of Application”.

• at a revalued value, when similar calculations are made from the fair value on the previous date of revaluation, which implies the systematic conduct of such assessments with the involvement of professional appraisers.

Adjustments to the carrying amount during revaluation can be reflected in 2 ways (clause 35 of IFRS 16):

• through a revaluation of the gross book value and the corresponding depreciation, the difference between which will be the revalued value;
• through revaluation (depreciation) to fair value of the difference between the gross book value and accumulated depreciation.

Revaluation of one fixed asset from a group entails the need to revaluate the entire group (clause 36 of IFRS 16).

With an initial increase in value, the revaluation is taken into account in equity with a subsequent decrease in this amount during a markdown and the amount of the depreciation exceeding the accumulated revaluation is attributed to losses (clause 39 of IFRS 16). When there is an initial decrease in value, the markdown is taken into account in losses, followed by the allocation of revaluation amounts to profit and the accounting of revaluation amounts exceeding the initial depreciation in equity (clause 40 of IFRS 16). When disposing of fixed assets, the additional valuation accounted for in capital is transferred from capital to retained earnings (clause 41 of IFRS 16).

Reflection of revaluation results

Revaluation results in the carrying amount of an item changing either by increasing or decreasing. If there is an increase (revaluation), it is reflected in accounting by posting to Kt account 83 for the amount by which the revaluation was made. When there is a decrease, that is, a markdown, it is reflected in the accounting records by posting to Dt account 91 for the amount of the markdown.

Example: Revaluation is carried out by the organization for the first time. As of December 31, 2013, the book value of a group of fixed assets is 17,405,400 rubles, the market value is 15,301,160 rubles. Depreciation charges before revaluation - RUB 7,166,400. The depreciation method is linear.

To recalculate depreciation, we calculate a coefficient equal to the ratio of market value to book value: 15,301,160: 17,405,400 = 0.88. The amount of recalculated depreciation will be: 7,166,400 x 0.88 = 6,306,432. The difference between accumulated and recalculated depreciation: 7,166,400 – 6,306,432 = 859,968. The amount of write-down is determined as the difference between book value write-downs and depreciation: 17,405,400 – 15,301,160 = 2,104,240; 2,104,240 – 859,968 = 1,244,272

As of December 31, 2013, the following accounting entries were made:

In cases where the revaluation of fixed assets has already been carried out previously, this will be reflected differently in accounting. Let's present these differences in the form of tables:

Let's consider another example: As of December 31, a revaluation of a homogeneous group of property that was revalued earlier is being carried out. Before the new revaluation, the replacement cost is 16,800,000 rubles, depreciation charges are 7,200,350 rubles. Market value as of December 31: 19,400,000 rubles. In the previous markdown, 605,600 rubles were allocated to account 84.

Conversion factor: 19,400,000: 16,800,000 = 1.15. Amount of recalculated depreciation: RUB 7,200,350. x 1.15 = 8,280,402. The difference between recalculated and accumulated depreciation: 8,280,402 - 7,200,350 = 1,080,052. The additional valuation will be: (19,400,000 - 16,800,000) - 1,080,052 = 1,519,948.

This result must be divided into two amounts. One of them, equal to the amount of the previous markdown, is included in other income. Second: 1,519,948 - 605,600 = 914,348 is included in additional capital.

As of December 31, the following accounting entries are made:

• Dt 01 - Kt 02 - 1,080,052 rub. re-estimation of depreciation;
• Dt 01 - Kt 91-1 - 605,600 rub. revaluation equal to the previous depreciation;
• Dt 01 - Kt 83 - 914,348 rub. the rest of the revaluation.

It is important to remember that when registering the disposal of a fixed asset, it is necessary to write off the amount by which it was revalued from additional capital to retained earnings. In general, the set of accounting entries in this case should look something like this:

• Dt 20 - Kt 02 - depreciation charges for retiring fixed assets;
• Dt 01-2- Kt 01 – write-off of the replacement cost of fixed assets;
• Dt 02 - Kt 01-2 - depreciation written off;
• Dt 10 - Kt 01-2 - components remaining during liquidation are capitalized;
• Dt 01-2- Kt 76 – third-party services for liquidation of OS;
• Dt 19 - Kt 76 - VAT on liquidation services;
• Dt 91-2- Kt 01-2 – financial result from the liquidation of the operating system;
• Dt 83 - Kt 84 - additional valuation of retired fixed assets.

The given examples give a completely complete picture of the sequence of carrying out and the procedure for reflecting revaluations in accounting. With tax accounting for the results of revaluations, everything is much simpler.

Revaluation of property (accounting and tax aspects)

Published in the issue: Accountant Consultant N2 / 2002

In pursuance of the Accounting Reform Program in accordance with International Financial Reporting Standards, the Ministry of Finance of the Russian Federation developed and approved in 2001 a new edition of the Accounting Regulations 'Accounting for Fixed Assets' PBU 6/01. The Regulations come into force starting with the 2001 financial statements. This means that the annual financial statements for 2001 must be prepared in accordance with the provisions of PBU 6/01.

PBU 6/01 contains a clarification regarding cases of changes in the initial cost of fixed assets at which they are accepted for accounting. Along with changes in the initial value of objects carried out in cases of completion, retrofitting, reconstruction, partial liquidation, a clarification has been made regarding changes in the original value, which may also occur during the revaluation of fixed assets (which can only be carried out by a commercial organization).

Accordingly, a question arises. Is the property of federal state unitary enterprises (FSUE) subject to revaluation?

In accordance with Article 113 of the Civil Code of the Russian Federation, a FSUE is recognized as a commercial organization that is not vested with the right of ownership of the property assigned to it. They use and dispose of this property within the framework determined by the Civil Code of the Russian Federation. Due to the fact that in the accounting of the organization, the specified property is accounted for in account 01 'Fixed Assets', revaluation of objects, in our opinion, can take place with the consent of the property owner.

PBU 6/01 also applies to profitable investments in material assets, therefore, a revaluation of objects recorded in the specified account can be made.

Unlike the previously existing procedure, PBU 6/01 provides that a commercial organization can no more than once a year

(at the beginning of the reporting year) revaluate not an individual fixed asset, but
groups of similar fixed assets at current (replacement) cost by indexation or direct recalculation at documented market prices.
When revalued by indexation

It should be borne in mind that PBU 6/01 does not directly provide for the use of value change indices developed by the State Statistics Committee of Russia or other departments. Regarding this issue, it is necessary to expect additional clarifications from the Ministry of Finance of the Russian Federation.

The new Accounting Regulations, like the previous ones, do not provide for the revaluation of fixed assets as of the expired date, for example, during 2001 as of January 1, 2001. As a rule, the revaluation of fixed assets should be carried out at the end of the year as of January 1 of the next reporting year.

According to paragraph 20 of the 'Methodological recommendations on the procedure for generating indicators of an organization's financial statements', approved by order of the Ministry of Finance of the Russian Federation dated June 28, 2000 N 60n, the results of the revaluation of fixed assets carried out by the organization in accordance with the established procedure before the start of the reporting year as of the first day of the reporting year are subject to reflection in accounting in the month of January and are taken into account in the financial statements when generating data at the beginning of the reporting year.

Starting from January, depreciation should be calculated based on the new replacement cost. Guided by this requirement, you need to remember that after revaluation, the data on the financial statements at the end of the last year will not correspond to the data at the beginning of the current year. Also, due to the fact that the results of the revaluation are subject to reflection in accounting in January, but as of the beginning of the year, the data in the general ledger will differ from the data in the financial statements.

PBU 6/01 also provides for the principle of regular revaluation of fixed assets so that the cost of fixed assets at which they are reflected in accounting and reporting does not differ significantly from the current (replacement) cost.

The question of the frequency of such revaluations, although not precisely defined, can be assumed that, taking into account the inflationary processes occurring in the country, the concepts 'regularly' and 'annually'

- in this situation - are identical, especially since revaluation irregularly (once every few years) is formally not allowed. It can be assumed that the issue of the timing of the revaluation should be documented, for example, in an order on accounting policies.

We should not forget that as a result of the revaluation of a fixed asset, the amount of depreciation accrued on it is also adjusted. For this purpose, the conversion factor is determined as the ratio of replacement cost to book value.

It is necessary to pay attention to the fact that revaluation of fixed assets is allowed only for groups of homogeneous objects.

This requirement differs significantly from current practice, when revaluation could be carried out for individual fixed assets. The Regulations do not provide for the procedure for determining groups of fixed assets.

In this case, in our opinion, you can use the 'Classification of fixed assets included in depreciation groups', approved by Decree of the Government of the Russian Federation of January 1, 2002 No. 1.

Paragraph 15 of PBU 6/01 establishes general rules regarding the reflection of the results of revaluation of fixed assets, namely:

• crediting additional valuation amounts to the organization’s additional capital;
• transferring the amounts of depreciation of fixed assets to the profit and loss account as operating expenses.

If there is an additional valuation of an object of fixed assets as a result of its revaluation, and in previous reporting periods there was a depreciation of
the specified object, which was charged to the profit and loss account as operating expenses, then the above amount of the revaluation, equal to the amount of its depreciation, should be charged to the account profit and loss of the reporting year as income.

It should be recalled that previously organizations attributed the results of revaluation (revaluation) to the account of additional capital without any restrictions.

In accordance with PBU 6/01, in general, the amount of depreciation of an object of fixed assets as a result is charged to the profit and loss account as an expense. The amount of depreciation of an object of fixed assets is included in the reduction of the organization’s additional capital, which was formed due to its revaluation carried out in previous reporting periods. The excess of the amount of the depreciation over the amount of its revaluation, which was previously credited to the organization's additional capital as a result of its revaluation carried out in previous reporting periods, should be charged to the profit and loss account as operating expenses.

Example No. 1.

(initial markdown).
The organization revalued the fixed asset using the index method. The initial cost of this object is 200,000 rubles, the amount of accrued depreciation is 50,000 rubles. For revaluation, an index of 0.7 was used.

In accordance with paragraph 15 of PBU 6/01, the amount of depreciation of fixed assets as a result of revaluation is charged to the profit and loss account as expenses.
In this case, the amount of markdown was 60,000 rubles. (200,000 - (200,000 x 0.7)).

In accordance with the Chart of Accounts (Instructions for using the Chart of Accounts), other income and expenses recognized as operating or non-operating are recorded in account 91 'Other income and expenses'.

Table 1

Here, a discrepancy arises in accounting regulations - PBU, which lies in the fact that PBU 6/01 defines the amount of markdown as an operating expense, while PBU 9/99 and PBU 10/99 define the amounts of revaluation and depreciation of assets as non-operating expenses income and expenses. In our opinion, it is more logical to recognize income and expenses arising as a result of revaluation as operating, given that the organization must regularly revaluate fixed assets and this type of income and expenses may be of a permanent nature.

Example No. 2.

(repeated revaluation)
The organization revaluates the fixed asset object by direct recalculation at market value, which is 500,000 rubles. The object is accounted for at a replacement cost of 600,000 rubles, the amount of depreciation accrued during the operation of the object is 200,000 rubles. As a result of previous revaluations of the object, the amount of 60,000 rubles was allocated to the increase in additional capital.

In the situation under consideration, a fixed asset asset is depreciated as a result of a decrease in its market value.
At the same time, the object was previously subject to revaluation. In this case, the amount of depreciation of a fixed asset object in accordance with paragraph 15 of PBU 6/01 is included in the reduction of the organization’s additional capital formed from the amounts of the revaluation of this object carried out in previous reporting periods. The excess of the amount of the depreciation of the object over the amount of its revaluation, credited to the additional capital of the organization as a result of the revaluation carried out in previous reporting periods, is charged to the profit and loss account as an operating expense.

In this case, the amount of markdown was 100,000 rubles. (600,000 - 500,000). Of these, the amount is 60,000 rubles. is written off from the amount of the previously made revaluation, and the amount is 40,000 rubles. included in the organization's expenses.>

table 2

Example No. 3.

(initial revaluation)
The initial cost of the fixed asset is 300,000 rubles, the amount of accrued depreciation is 40,000. As a result of the revaluation, the cost increased by 80,000 rubles.

Table 3

Example No. 4.

(repeated revaluation)
If the fixed asset item discussed in Example 2 was previously revalued, as a result of which a markdown was made, and the amount of the writedown was charged to the profit and loss account, then the amount of the revaluation in this amount is credited to the account profits and losses as income.

Let's continue the previous example. The amount of the markdown as a result of the previous revaluation amounted to 50,000 rubles. The writedown was charged to profit and loss.

Table 4

One more circumstance should be noted.

In contrast to PBU 6/97, the new PBU 6/01 also applies to profitable investments in material assets.
An organization that has made investments in part of the property, buildings, premises, equipment and other valuables that have a tangible form, for provision for a fee for temporary use (temporary possession and use) for the purpose of generating income, accepted for accounting on account 03 ' Profitable investments in tangible assets'
can take advantage of the rule regarding revaluation. In particular, this applies to the subjects of a financial lease (leasing) agreement. Along with the data characterizing the financial lease (leasing) agreement, for example, the size, procedure, conditions and timing of making lease payments, the said agreement may provide for the possibility of revaluing the leased items because the revaluation will affect the amount of lease payments.

Since there are no separate instructions on the revaluation of such property, it is necessary to be guided by the general provisions on revaluation.

The Chart of Accounts (Instructions for using the Chart of Accounts) does not provide for entries for the revaluation of property listed on account 03, however, by analogy with the fact that the property reflected in this account is also used in business activities to generate income, the entries will be similar to the entries for the revaluation of fixed assets funds.

Many questions previously arose regarding what to do with additional capital formed as a result of the revaluation of fixed assets upon disposal of these objects.

Now there is a clear answer to these questions.
According to PBU 6/01, when a fixed asset is disposed of, the amount of its revaluation is transferred from additional capital to retained earnings, and therefore an entry is made in the debit of account 83 'Additional capital' in correspondence with the credit of account 84 'Retained earnings (uncovered loss)'.
Disposal of fixed assets may occur in the event of sale, gratuitous transfer, write-off in case of moral and physical wear and tear, liquidation in case of accidents, natural disasters and other emergency situations.

It is necessary to pay attention to the fact that

that in connection with the new procedure for reflecting the results of revaluation, there is a need to maintain analytical records of the results of revaluation of fixed assets in the context of each object, both for use in subsequent revaluations and for possible disposal.

Example No. 5.

(disposal)
A year later, after operation, the fixed asset item discussed in the previous example has fallen into disrepair, cannot be restored and is written off from the balance sheet. During disassembly, components were capitalized, the market value of which was 70,000 rubles. The amount of accrued depreciation for the last year of operation amounted to 4,333 rubles.

Income and expenses from writing off fixed assets from accounting are operating income and expenses (clause 31 of PBU 6/01, clause 7 of PBU 9/99, and also clause 11 of PBU 10/99).
In accordance with the Chart of Accounts (Instructions for using the Chart of Accounts), when writing off fixed assets, the amount of depreciation accrued on them is written off from account 02 'Depreciation of fixed assets' to the credit of account 01, subaccount 5 'Disposal of fixed assets.

The residual value of the object is written off from the credit of account 01 to
the debit of account 91, subaccount 91-2 'Other expenses'.
The procedure for accounting for material assets received as a result of the write-off of fixed assets is established by paragraph 54 of the Accounting Regulations, according to which the material assets remaining from the write-off of fixed assets unsuitable for restoration and further use are accounted for at market value on the date of write-off, and the corresponding amount credited to the financial results of a commercial organization. This operation is reflected in accounting as the debit of account 10, subaccount 10-5 'Spare parts',

in correspondence with the credit of account
91, subaccount 91-1 'Other income'.
In the situation under consideration, a fixed asset item, the value of which was previously overvalued, is disposed of. Upon disposal of such an object, the amount of the additional valuation of its value, previously credited to the organization’s additional capital, is transferred from the additional capital to the organization’s retained earnings (clause 15 of PBU 6/01).

In accounting, this operation is reflected as an entry in the debit of account 83

in correspondence
with the credit of account 84.
Table 5

The results of revaluations of fixed assets are taken into account not only upon disposal. Thus, in accordance with paragraph 6.7 of the resolution of the Federal Commission for the Securities Market of September 17, 1996 N19 'On approval of standards for the issue of shares when establishing joint-stock companies, additional shares, bonds and their prospectuses' one of the ways to increase the authorized capital of a joint-stock company is increase in the nominal value of shares due to funds from the revaluation of fixed assets.

Example No. 6.

(increase in authorized capital)
The JSC decided to increase the authorized capital of the company by increasing the par value of shares using funds received from the revaluation of fixed assets. The amount of additional valuation of fixed assets amounted to 200,000 rubles. The amount of additional capital allocated to increase the authorized capital is 50,000 rubles. As a result of the conversion of the company's shares into shares with a higher par value, the authorized capital was increased by 50,000 rubles.

According to the Chart of Accounts (Instructions for using the Chart of Accounts) in accounting, the direction of funds recorded on account 83 to increase the authorized capital is reflected in the debit of account 83 in correspondence with account 75 'Settlements with founders' or account 80 'Authorized capital'.
Due to the fact that the Instructions for using the Chart of Accounts provide for the maintenance of analytical accounting
for account 75
for each founder, in order to complete the formation of information on settlements with shareholders, it is advisable to reflect the allocation of funds to increase the authorized capital as a
credit to account 75 as a debit to account 83.
The accounting entry for credit account 80 in correspondence with account 75

carried out after registration with the Federal Commission for the Securities Market of a report on the results of the issue of shares and state registration of relevant changes in the constituent documents of the enterprise.

Table 6

Due to the fact that for accounting purposes we need to know the amount of revaluation for each fixed asset, in order to subsequently use it either to reduce losses from the depreciation of fixed assets, or to increase retained earnings, the following question arises - how Determine by revaluing which fixed assets the authorized capital was increased?

Regulatory documents on accounting do not regulate this issue; from the point of view of common sense, it is necessary to proportionally reduce the amount of revaluation of each fixed asset in proportion to the share of its revaluation in the total amount of additional capital formed due to revaluation.

Let's consider the possibility of the impact of revaluation on reducing losses when writing off under-depreciated fixed assets.

Example No. 7.

The organization writes off the car due to the impossibility of further use. The replacement cost of the car is 400,000 rubles; depreciation in the amount of 80,000 rubles is accrued during use. The additional valuation of this fixed asset item reflected in account 83 is 90,000 rubles.

When written off without prior revaluation.
Table 7

If a revaluation was carried out previously (at the beginning of the year).

The car was revalued to market value using the direct conversion method. The market value was 300,000 rubles.

Table 8

The posting system cannot change the financial result of business transactions. The above example shows that the use of preliminary revaluation can affect the financial statements. So in the second case, the amount of losses received from other activities, reflected in Form 2 of the financial statements, is less by the amount of 90,000 rubles, equal to the amount of the previously made revaluation.

Currently, in accordance with the provisions of Chapter 25 of the Tax Code of the Russian Federation, the results of the revaluation of fixed assets for tax accounting purposes do not have an impact. In accordance with the adoption of Chapter 25 of the Tax Code of the Russian Federation, revaluation of fixed assets for tax accounting purposes does not exist.

Thus, in accordance with Articles 250 and 265 of the Tax Code of the Russian Federation, non-operating income and expenses are positive and negative differences received from the revaluation of property (with the exception of depreciable property and securities). With regard to the revaluation of securities, there are separate provisions in Articles 251 and 270 of the Tax Code of the Russian Federation, as for the revaluation of depreciable property, there are no more references to it.

There is only indirect evidence about the possibility of taking into account the results of the revaluation of fixed assets for tax purposes. Thus, in a number of articles of part two of the Tax Code of the Russian Federation, namely articles 258, 259, 260, the term replacement cost is used, but whether it is such as a result of revaluation or not is unknown.

Perhaps in the future the situation regarding the revaluation of fixed assets for tax purposes will change. However, it may turn out that this constitutes another separation of accounting and tax accounting, according to which there will be a need to maintain parallel accounting of fixed assets that are revalued for accounting purposes and have an original cost for tax purposes.

Revaluation of current assets

In accordance with paragraph 25 of PBU 5/01, starting from 2002, an organization can create a reserve for reducing the value of material assets.

According to paragraph 25 of the specified PBU, 'Inventories that are obsolete, have completely or partially lost their original quality, or the current market value, the selling price of which has decreased, are reflected in the balance sheet at the end of the reporting year minus the reserve for a decrease in the value of material assets. A reserve for reducing the value of material assets is formed at the expense of the organization's financial results by the amount of the difference between the current market value and the actual cost of inventory, if the latter is higher than the current market value.

The chart of accounts to reflect the amount of the created reserve provides for account 14 'Reserves for reduction in the value of material assets'.

In accordance with the Instructions for using the Chart of Accounts, the use of account 14, which acts as a contractual account to accounts 10 and 11, allows you to reflect their value at prices of possible disposal without direct revaluation of the material assets themselves, which significantly simplifies accounting.

Example No. 8.

At the end of the year, the organization conducted testing to ensure that the book value of individual inventory items corresponded to their current market prices. The identified difference amounted to 90,000 rubles.

Table 9

The amount of the created reserve is accepted only for accounting purposes and does not affect taxation.

Revaluation of fixed assets and tax accounting

Speaking about the impact of the results of revaluations carried out by an organization on tax accounting indicators, it is necessary to immediately voice the following point: in contrast to the relevant paragraphs of the PBU, the articles of the Tax Code include in the list of cases that lead to a change in the value of an object of fixed assets the completion, retrofitting, modernization, reconstruction, technical re-equipment and partial liquidation, paragraph 2 of Article 257 “The procedure for determining the initial cost of depreciable property” of the Tax Code of the Russian Federation. Revaluation is not included in this list.

Accordingly, the results of revaluations carried out by the organization are not reflected in tax accounting. The Tax Code does not recognize the amounts of markdowns and revaluations as part of income or expenses taken into account for tax purposes. This is confirmed by the position taken by the Ministry of Finance on this issue - letters of the Ministry of Finance of the Russian Federation dated July 8, 2011 No. 03-03-06/1/412, dated September 8, 2011 No. 03-03-06/1/544.

However, revaluation still has an indirect impact on the results of tax accounting. In accordance with paragraph 4 of Article 376 “The procedure for determining the tax base” of the Tax Code of the Russian Federation, the average annual value of taxable property is calculated by dividing the residual value of the property by all the first days of the year and the last day of the year by the number of months increased by one.

Thus, revaluation data that is not accepted for tax accounting still affects the tax base in terms of calculating property tax indirectly, through the recalculation of the residual value of property.

Accounting: additional valuation

In accounting, the amount of revaluation for each fixed asset item is reflected by the following entries:

Debit 01 (03) Credit 83 subaccount “Revaluation of fixed assets” - the initial (replacement) cost of the fixed asset has been increased;

Debit 83 subaccount “Revaluation of fixed assets” Credit 02 – accrued depreciation on fixed assets has been increased.

For a fixed asset that was previously discounted, make these entries only for the amount of the revaluation, which exceeds the amount of loss resulting from previous markdowns. Determine the amount of the loss using analytical accounting data (for example, using a statement of the results of revaluation of fixed assets). Reflect the amount of additional valuation of the fixed asset within the amount of loss from previous markdowns (reflected on account 91) with the following entries:

Debit 01 (03) Credit 91-1 – the initial (replacement) cost of the fixed asset was increased within the limits of the loss generated during previous markdowns of this object;

Debit 91-2 Credit 02 – accrued depreciation on a fixed asset has been increased within the limits of the loss generated during previous markdowns of this object

An example of reflecting the primary revaluation of a fixed asset in accounting

As of December 31, Alpha LLC conducted an initial revaluation of the computer. The organization has no other office equipment.

Based on the results of the revaluation, the initial cost of the computer should be increased by 2000 rubles, and the amount of accrued depreciation - by 200 rubles.

Alpha's accountant made the following entries in the accounting records:

Debit 01 Credit 83 subaccount “Revaluation of fixed assets” – 2000 rubles. – the initial cost of the computer was increased based on the results of revaluation;

Debit 83 subaccount “Revaluation of fixed assets” Credit 02 – 200 rub. – based on the results of revaluation, the accrued amount of depreciation on the computer was increased.

An example of how subsequent revaluation of a fixed asset is reflected in accounting. Based on the results of the previous revaluation, the fixed asset was discounted

As of December 31, Alpha LLC carried out a subsequent revaluation of the computer. The organization has no other office equipment.

Based on the results of the revaluation, the replacement cost of the computer should be increased by 2000 rubles, and the amount of accrued depreciation - by 200 rubles. The total amount of the revaluation was 1800 rubles. (2000 rub. – 200 rub.).

Due to the revaluation for the previous year, a loss in the amount of 800 rubles is recorded on computer account 91.

Alpha's accountant made the following entries in the accounting records:

Debit 01 Credit 91-1 – 889 rub. (2000 rubles × 800 rubles: 1800 rubles) – the replacement cost of the computer was increased based on the results of the revaluation within the limits of the loss generated during previous markdowns;

Debit 01 Credit 83 subaccount “Revaluation of fixed assets” – 1111 rubles. (2000 rubles – 889 rubles) – based on the results of the revaluation, the replacement cost of the computer was increased in excess of the loss generated during previous markdowns;

Debit 91-2 Credit 02 – 89 rub. (200 rubles × 800 rubles: 1800 rubles) – based on the results of the revaluation, the accrued amount of depreciation on the computer was increased within the limits of the loss generated during previous markdowns;

Debit 83 subaccount “Revaluation of fixed assets” Credit 02 – 111 rub. (200 rubles – 89 rubles) – based on the results of the revaluation, the accrued amount of depreciation on the computer was increased in excess of the loss generated during previous markdowns.

Revaluation procedure

Most modern companies want to know the true position of their company in the market and the true value of their assets. Therefore, revaluation is quite popular.

The revaluation procedure consists of three stages :

1. Determining the cost of the OS.
2. Conducting a revaluation of funds in the company’s currency.
3. Indexation of the organization's assets.

documents are used for revaluation :

• statement of fixed assets;
• ownership documents;
• passports of buildings, structures, equipment and other operating systems; in the absence of a passport, design and estimate documentation is provided.

Typically, when conducting a revaluation, organizations use the services of independent experts. The timing and cost of their work depend on the number of assets, the quality of the information used and the urgency of the procedure.

Reflection in financial statements

When forming the Balance Sheet indicators for the reporting year, reflect fixed assets taking into account the results of the revaluation of fixed assets on line 1130 “Fixed Assets”. In addition, the results of the revaluation are reflected in the balance sheet on line 1340 “Revaluation of non-current assets”. In this case, the amount of additional capital is reflected in the balance sheet without taking into account revaluation on line 1350 “Additional capital (without revaluation)”.

The results of the revaluation must also be reflected in the following forms of financial statements:

• according to the lines “Increase in capital” and “Decrease in capital” (columns 4 and 6) of the Statement of Changes in Capital;

• in the Notes to the Balance Sheet and the Statement of Financial Results.

Situation: is it possible to write off losses from previous years using additional capital formed as a result of the revaluation of fixed assets?

No you can not.

This is due to the fact that due to the additional capital formed during the revaluation of a fixed asset, the amounts of its subsequent markdowns are written off (paragraph 6 of clause 15 of PBU 6/01, Instructions for the chart of accounts (account 83)). If the additional capital is written off to pay off losses from previous years, then the methodology for reflecting the results of revaluation of fixed assets in accounting will be violated. A similar point of view is reflected in the letter of the Ministry of Finance of Russia dated July 21, 2000 No. 04-02-05/2.

Attention: writing off losses from previous years using additional capital formed as a result of the revaluation of fixed assets may entail administrative liability.

In practice, in order to make the Balance Sheet more attractive, the founders of the organization decide to allocate additional capital generated through revaluations of fixed assets to pay off losses of previous years. However, this may lead to a gross violation of the rules for presenting financial statements. A gross violation of the rules for presenting financial statements is a distortion of any line of the financial statements by at least 10 percent. Therefore, if the value of additional capital in the financial statements is distorted by at least 10 percent, the court may fine the head of the organization or the chief accountant in the amount of 2,000 to 3,000 rubles. (Article 15.11, Part 1 of Article 23.1 of the Code of Administrative Offenses of the Russian Federation).

The procedure for reflecting the results of revaluation of a fixed asset in tax accounting depends on the taxation system that the organization applies.