ESP method for calculating the amortization of the cost of a loan. An example of calculating the amortized cost of financial assets and financial liabilities. Depreciation Calculation Methods

Amortized cost

The amortized cost of a financial asset or financial liability is the amount obtained by deducting from the cost of the asset or liability at initial recognition the amounts of any payments made (received), adjusted by the amount of accumulated amortization of the difference between the amount initially recognized and actually received (paid) on a financial instrument, and the amount of any impairment loss recognized for that instrument.

This difference is amortized using the effective interest rate. Accrued interest includes amortization of deferred transaction costs at initial recognition and premiums or discounts from the maturity amount using the effective interest method.

Accrued interest income and accrued interest expense, including accrued coupon income and amortized discount and premium, are not shown separately but are included in the carrying amounts of the related assets and liabilities.

For financial assets and financial liabilities with a floating rate, at the moment a new coupon (interest) rate is set, cash flows and the effective rate are recalculated. The effective rate is recalculated based on current amortized cost and expected future payments. In this case, the current amortized cost of the financial instrument does not change, and further calculation of the amortized cost is carried out using the new effective rate.

The effective interest method is a method of calculating the amortized cost of a financial asset or financial liability and accruing interest income or interest expense over the relevant life of the financial asset or liability.

The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the financial instrument, or a shorter period if applicable, to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Bank estimates cash flows taking into account all contractual terms of the financial instrument (for example, the possibility of early repayment), but does not take into account future credit losses.

This calculation includes all significant commissions and fees paid and received between the parties to the contract that are an integral part of the calculation of the effective interest rate, transaction costs, and all other premiums and discounts.

In this case, materiality should be understood as an assessment of the impact of such fees and charges on the value of the effective interest rate. For these purposes, the Bank has determined a materiality criterion of 10%.

If there is doubt about the repayment of loans issued, their carrying amount is adjusted to the recoverable amount, followed by the recognition of interest income based on the interest rate used to discount future cash flows in order to determine the recoverable amount. It is assumed that the cash flows and estimated life of a group of similar financial instruments can be measured reliably. However, in those rare cases where it is not possible to estimate the cash flows or the expected life of a financial instrument, the Bank uses the contractual cash flows over the entire contractual life of the financial instrument.

Basic Accounting Principles − These financial statements of the Bank have been prepared on an accrual basis.

Accounting records are maintained by the Bank in accordance with Russian legislation. The accompanying financial statements, which are based on accounting records kept in accordance with Russian accounting rules, have been adjusted accordingly to bring them into line with International Financial Reporting Standards (IFRS).

Reporting currency - The currency used in the preparation of these financial statements is the Russian ruble, abbreviated as "RUB".

Cash and cash equivalents. Cash and cash equivalents are items that are readily convertible to a certain amount of cash and are subject to an insignificant change in value. Funds for which there are restrictions on use at the time of provision are excluded from cash and cash equivalents. Cash and cash equivalents are carried at amortized cost. When compiling cash flow statements, the amount of required reserves deposited with the CBR was not included in cash equivalents due to restrictions on their use (see Note 11).

Financial assets at fair value through profit or loss - The Bank classifies assets as at fair value through profit or loss if these assets:

1) are acquired or accepted principally for the purpose of selling or repurchasing in the short term;

2) are part of a portfolio of identifiable financial instruments that are managed on an aggregate basis and whose recent transactions indicate actual short-term profit making.

Derivative financial instruments with a positive fair value are also designated as financial assets at fair value through profit or loss, unless they are derivatives designated as an effective hedging instrument.

Initially and subsequently, financial assets at fair value through profit or loss are measured at fair value, which is calculated either on the basis of quoted market prices or using various valuation techniques based on the assumption that these financial assets can be realized in the future. Different valuation techniques may be applicable depending on the circumstances. The availability of published price quotations in an active market is the best way to determine the fair value of an instrument. In the absence of an active market, techniques are used that include information about recent market transactions between knowledgeable, willing to enter into such transactions, independent of each other, reference to the current fair value of another, substantially identical instrument, the results of discounted cash flow analysis and pricing models options. If there is a valuation technique that is widely used by market participants to determine the price of an instrument and has proven to be reliable in estimates of price values obtained from actual market transactions, then such a technique is used.

Realized and unrealized gains and losses on financial assets at fair value through profit or loss are recognized in the income statement in the period in which they arise as income less losses on financial assets at fair value through profit or loss. fair value through profit or loss. Interest income on financial assets at fair value through profit or loss is recognized in the income statement as income on financial assets at fair value through profit or loss. Dividends received are reflected in the line "Dividend income" in the income statement as part of operating income.

Purchases and sales of financial assets at fair value through profit or loss that are required to be delivered within the timeframes required by law or convention for that market (buying and selling under "standard contracts") are recognized on the trade date, which is the date when the Bank undertakes to buy or sell the asset. In all other cases, such transactions are treated as derivative financial instruments until settlement occurs.

The Bank classifies financial assets at fair value through profit or loss into the appropriate category at the time of their acquisition. Financial assets classified in this category may be reclassified only in the following cases:

(a) in very rare circumstances, financial assets may be reclassified from the fair value through profit or loss held-for-trading category to the held-to-maturity and available-for-sale category if the asset is no longer held for the purpose of sale or repurchase in the near future; and (b) reclassification from the category of financial assets at fair value through profit or loss held for trading to the category "loans and receivables" is possible if the entity has the intention and ability to hold the financial asset for the foreseeable future to maturity.

Available-for-sale financial assets – This category includes non-derivative financial assets that are designated as available-for-sale or are not classified as loans and receivables, held-to-maturity investments, financial assets at fair value through profit or loss . The Bank classifies financial assets into the appropriate category at the time of their acquisition.

Available-for-sale financial assets are initially recognized at fair value plus transaction costs that are directly attributable to the acquisition of the financial asset. In this case, as a rule, the fair value is the transaction price for the acquisition of a financial asset. Subsequent measurement of available-for-sale financial assets is carried out at fair value based on quoted market prices. Certain available-for-sale investments that are not quoted from external independent sources are measured by the Bank at fair value, which is based on the results of a recent sale of similar equity securities to unrelated third parties, on an analysis of other information, such as discounted cash flows and financial information about the investee, as well as the application of other valuation techniques. Depending on the circumstances, different evaluation methods can be applied. Equity investments that do not have a quoted market price are measured at cost.

Unrealized gains and losses arising from changes in the fair value of available-for-sale financial assets are recognized in equity. When available-for-sale financial assets are disposed of, the related cumulative unrealized gains and losses are included in the income statement as gains less losses on available-for-sale financial assets. Impairment and reversal of the previously impaired value of available-for-sale financial assets is recognized in the income statement.

Available-for-sale financial assets are impaired if their carrying amount exceeds their estimated recoverable amount. The recoverable amount is determined as the present value of expected cash flows, discounted at current market interest rates for a similar financial asset.

Interest income on available-for-sale financial assets is recognized in the income statement as interest income. Dividends received are recorded in the line "Dividend income" in the income statement as part of operating income.

Under standard settlement terms, purchases and sales of available-for-sale financial assets are recorded on the trade date, ie the date on which the Bank commits to buy or sell the asset. All other purchases and sales are treated as forward transactions until the transaction is settled.

Loans and receivables - This category includes non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, except for:

a) those that are intended to be sold immediately or in the near future and which should be classified as held for trading, measured at initial recognition at fair value through profit or loss;

b) those that, after initial recognition, are determined to be available-for-sale;

(c) those for which the owner is unable to recover the entire material amount of its original investment for reasons other than a deterioration in creditworthiness and which should be classified as available-for-sale.

Initial recognition loans and receivables are measured at fair value plus transaction costs incurred (ie the fair value of the consideration paid or received). In an active market, the fair value of loans and receivables is measured as the present value of all future cash inflows (payments), discounted using the prevailing market rate of interest for a similar instrument. In the absence of an active market, the fair value of loans and receivables is determined by applying one of the valuation techniques.

Loans and receivables are subsequently measured at amortized cost using the effective interest method. When making a decision to discount an asset, the principles of materiality, moderation, comparability and prudence are also taken into account.

Loans and receivables are recorded starting from the moment when funds are issued to borrowers (customers and credit institutions). Loans issued at interest rates other than market interest rates are measured at the date of issue at fair value, which is future interest payments and principal, discounted at market interest rates for similar loans. The difference between the fair and nominal value of a loan is recognized in the income statement as income from assets placed at above market rates or as an expense from assets placed at below market rates. Subsequently, the carrying amount of these loans is adjusted for amortization of income (loss) on the loan, and the corresponding income is recognized in the income statement using the effective interest method.

The Bank avoids the incurrence of impairment losses on initial recognition of loans and receivables.

Loans and receivables are impaired only if objective evidence of impairment exists, as a result of events occurring after the initial recognition of the asset, and the losses that affect the estimated future cash flows of the financial asset or group of financial assets can be reliably measured. In assessing impairment, the quality of collateral provided for loans is taken into account.

The amount of loss is determined as the difference between the asset's carrying amount and the present value of estimated future cash flows, calculated at the financial asset's original effective interest rate. The carrying amount of loans and receivables is reduced through an allowance account for loan impairment.

Once objective evidence of impairment has been determined on an individual basis, and if no such indication exists, loans are included in a group of financial assets with similar credit risk characteristics to assess whether there is any indication of impairment on a collective basis.

It should be taken into account that the assessment of possible losses on loans includes a subjective factor. The management of the Bank believes that the allowance for possible losses on loans is sufficient to cover losses inherent in the loan portfolio, although it is possible that in certain periods the Bank may incur losses greater than the allowance for possible losses on loans.

Loans that cannot be repaid are written off against the respective allowance for impairment formed on the balance sheet. Write-off is carried out only after completion of all necessary procedures and determination of the amount of loss. Recovery of amounts previously written off is reflected in the statement of profit and loss on the loan line "Establishment of provisions for loan impairment". A decrease in the previously created provision for impairment of the loan portfolio is reflected in the statement of profit and loss on the loan line "Formation of provisions for impairment of loans".

Other credit related commitments - In the normal course of business, the Bank enters into other credit related commitments, including letters of credit and guarantees. The Bank records special provisions for other credit related commitments if it is probable that losses will be incurred on these commitments.

Promissory notes purchased - Promissory notes purchased are classified, depending on the purpose of their acquisition, into the category of financial assets: financial assets at fair value through profit or loss, loans and receivables, financial assets available-for-sale, and are subsequently accounted for in accordance with accounting policy presented in this note for these categories of assets.

fixed assets Property, plant and equipment are stated at cost less accumulated depreciation and allowance for impairment. For buildings on the Bank's balance sheet at the time of the first application of IFRS (excluding construction in progress and investments in leased facilities), the cost is understood to be the revalued cost at the time of the first application of IFRS, for other property, plant and equipment - the acquisition cost, adjusted to the equivalent of the purchase price of the Russian ruble capacity as of December 31, 2002. If the carrying amount of an asset exceeds its estimated recoverable amount, then the carrying amount of the asset is reduced to its recoverable amount and the difference is recognized in the income statement. The estimated recoverable amount is determined as the higher of an asset's net realizable value and value in use. In the latter case, the amount of realized revaluation gain is the difference between the depreciation based on the revalued carrying amount of the asset and the depreciation based on its cost.

Construction in progress and capital investments in leased properties are accounted for at cost adjusted to the equivalent of the purchasing power of the currency of the Russian Federation as of December 31, 2002, for properties not completed before December 31, 2002, less allowance for impairment. Upon completion of construction, assets are transferred to the appropriate category of property, plant and equipment or investment property and are carried at their carrying amount at the time of transfer. Construction in progress is not subject to depreciation until the asset is put into operation.

Office and computer equipment is stated at acquisition cost, adjusted to the equivalent of the purchasing power of the Russian ruble at 31 December 2002, less accumulated depreciation.

Gains and losses arising from the disposal of property, plant and equipment are determined on the basis of their carrying amounts and taken into account in calculating profit/(loss). Repair and maintenance costs are recognized in the income statement when they are incurred.

Depreciation - Depreciation is charged on a straight-line basis over the useful lives of assets using the following depreciation rates:

Buildings and constructions
Investment property
Computer technology
Office equipment
Motor transport

Depreciation is recognized even if the fair value of an asset exceeds its carrying amount, provided that the residual value of the asset does not exceed its carrying amount. The repair and maintenance of an asset does not eliminate the need for depreciation.

International Union... The Ministry of Telecom and Mass Communications will prepare relevant proposals and will send... own services, financial, pension and ... Alimov ( CompanyGKB "Avtogradbank" Embankments... also overdue reporting to funds...

Banks and financial institutions often issue loans using a floating interest rate, which causes difficulties in classifying a financial asset in accordance with IFRS 9 Financial Instruments. Consider the features of the SPPI test for such loans and borrowings.

Let's say that companies have provided a loan with a floating interest rate, and there is a limit on the maximum / minimum interest rate of interest to be repaid.

Would such loan conditions prevent the loan from passing the SPPI test?

Or can this loan be classified at amortized cost?

Are there any restrictions for passing the SPPI test with a certain type of collateral?

The application guidance for IFRS 9 Financial Instruments (paragraph B4.1.15) states that:

“In some cases, a financial asset may have contractual cash flows that are described as principal and interest, but these cash flows do not represent payments of principal and interest on the principal amount outstanding.”

For example, such a situation is possible when the creditor's claim is limited to certain assets of the debtor or cash flows from certain assets.

In addition, this is a common lending practice where loans are secured by certain individual assets, such as mortgage or other collateral-type assets.

Let's take an example of how the IFRS 9 rules apply in this case.

What do the IFRS 9 rules prescribe regarding the classification of financial assets?

Under IFRS 9, you can classify a loan by amortized cost only if it passes 2 tests:

1. Business model test.

If a loan meets both criteria, then you can classify it according to amortized cost (AMC, from English "Amortized cost"), create a table of effective interest rates and recognize interest and principal repayments over the life of the loan in accordance with this table.

But what if the loan does not meet any of these criteria?

In such a case, there is no amortized cost, but you must classify the loan at fair value through profit or loss (FVPL or FVTPL, from the English "fair value through profit or loss").

This means an additional burden and a completely different accounting, as you will need to establish the fair value of such a loan at each reporting date, which is not an automatic process and can be quite difficult.

But let's go back to the original question and rephrase it.

Does the variable rate loan pass the SPPI test?

Interest should reflect only consideration for the time value of money and credit risk - nothing else.

If there is anything else, then it will not match the test criteria and the test will fail.

Examples of loans that meet the criteria for the SPPI test.

Interest rate related to market rates.

For example, a loan with a floating rate is provided by a European bank, let's say at a rate of LIBOR 6 months + 0.5%.

In other words, if the floating rate on a loan is pegged to some interbank market rates, and nothing else, then this is SPPI-compliant, since the cash flows from this loan are payments of principal and interest only.

And in this case, it does not matter whether the interest rate under the agreement is floating or fixed.

The maximum or minimum interest rate payable.

If there is a certain limit on the amount of interest payable (a certain maximum or minimum interest rate threshold), this reduces the volatility of cash flows from interest paid.

If this is the only reason for the contractual interest rate limit, then everything is in order and the SPPI test has passed.

The interest rate is tied to inflation.

Here we are talking about a loan, the amount of interest on which varies depending on the rate of inflation.

What to do in this case?

If the terms of the contract say that the interest on the loan is linked to the annual inflation index, then this meets the criteria of the SPPI test, since tying interest and principal payments to the inflation index, in its own way, updates the time value of money to the current level.

Loans with full recourse on collateral.

If the financial instrument is full recourse loan, i.e. is fully secured by the borrower's collateral, it can be argued that this collateral does not affect the classification of the loan, and the loan may still meet the requirements of the test.

All of these types of loans satisfy the contractual cash flow characteristics test, and if the business model test is performed, you can classify them at amortized cost.

Examples of loans that do not meet the criteria for the SPPI test.

Non-recourse secured loan.

When you have a non-recourse loan secured by some kind of collateral, it may not pass the SPPI test.

Why?

A non-recourse loan means that in the event of a default by the borrower, the bank can use the collateral (for example, sell the collateral to collect cash flows under the agreement), but the bank is not entitled to any additional compensation, even if the collateral does not cover the full value of the default amounts.

Thus, in this case, the contractual cash flows may be limited by the value of the collateral and do not meet the contractual cash flow criteria.

In practice, this situation is rare. Retail banks that provide mortgages to individual customers are fully recourse in most countries and in most cases.

The interest rate depends on the cash flow on the pledge.

Another example of what does not meet the SPPI test are loans with interest depending on the cash flows associated with the loan.

Suppose a bank provides a loan for the construction of an apartment building, where the collateral is the land plot on which the construction is being carried out. At the same time, cash flow payments may increase or decrease depending on the proceeds from the sale of apartments.

This does not meet the SPPI test, since cash flows also include another component - profit share, i.e. not just interest and principal payments.

Another example is that the future repayment of a loan depends on changes in the market price of the mortgaged property.

Loans convertible into a fixed number of ordinary shares.

Another example of a loan that fails the SPPI test is credit convertible into shares.

If a bank makes a loan to a large company with the option of converting that loan into common stock instead of redemption, this violates the requirements of the test because the cash flows are not only for principal and interest repayments, but also for debt conversion.

Again, this situation requires careful analysis because if the loan converts into a variable number of shares, and the outstanding amount of the loan equals the fair value of the converted shares, then everything is fine.

The interest rate on the loan includes the borrowing rate.

This refers to loans, the interest rates on which include the rate of attraction of borrowed funds by the bank or financial institution itself.

For example, a loan is provided at a rate of 2 times the 3-month LIBOR - i.e. the rate is 2 times the rate covering borrowing by the bank and lending to the borrower.

It also fails the SPPI test because cash flow volatility increases dramatically and these cash flows do not have the economic characteristics of interest—they do not reflect only the time value of money or credit risk.

Generally, the issue of classification of floating rate loans requires careful analysis of the contract.

Here are just a few examples of the most common cases. Remember that when reviewing a loan agreement, you always need to evaluate:

whether the cash flows are only repayments of debt and interest, and
Whether the interest rate reflects only the time value of money and credit risk.

Any organization includes in its composition objects classified as fixed assets, for which depreciation is carried out. Within the framework of this article, we will consider what depreciable cost (IFRS 16) is, how depreciation charges are made, what balance sheet assets need to be depreciated.

OS depreciation

In fact, depreciation is expressed as a phased transfer of costs allocated for the acquisition of fixed assets (fixed assets) to the costs (cost) of manufactured products. Depreciation is pre-established in paragraphs 17-25 of PBU 6/01, approved by Order of the Ministry of Finance of the Russian Federation.

Depreciable cost is the purchase price of an item, including all costs, less salvage value, the amount that would be received when the asset is liquidated. In practice, salvage value is often small, so most often it can be neglected.

The residual value is calculated as the original purchase price of the acquisition minus the calculated depreciation. The depreciated replacement cost is the amount of depreciation already accumulated.

The following legal entities can charge depreciation:

the organization itself - according to the property that is its property;
lessee - for fixed assets leased under the contract;
lessor - for leased real estate;
lessee or lessor - for fixed assets transferred under a financial lease agreement (according to the terms of the agreement).

Below, the accrual procedure will be considered and a breakdown of such concepts as residual, replacement and depreciated cost will be given. IFRS, PBU and other standards and regulations do not contradict the material below.

Fixed assets subject to depreciation

Fixed assets subject to depreciation include buildings, structures, tools and other objects presented in material form, whose service life at the time of the transaction is more than one year.

Fixed assets include, among other things, natural resources (for example, water, subsoil) and land plots. However, they are always accounted for separately in the balance sheet at their purchase price. This is due to the fact that the properties of natural objects practically do not change over time. An exception may be natural areas where mining takes place. In such cases, the subsoil is depleted, so the calculations are carried out in a slightly different form.

Depreciation cannot be accrued to fixed assets of non-profit organizations. For the property in question, depreciation is written off to account No. 010, which is used to calculate the depreciation of fixed assets. If fixed assets are residential premises (hostel, apartment building, etc.), it is also not written off through accounting at amortized cost. The only exceptions are objects that are listed in the balance sheet on account 03 and generate income.

Depreciation deductions are subject to a property object that falls under any of the following conditions:

is the property of the organization;
is in operational management;
is the subject of a lease.

The legislation allows not to accrue depreciation and write off costs immediately after the purchase of fixed assets, if:

depreciable cost of fixed assets - no more than 40,000 rubles;
The OS is a brochure, book or other printed publication (price does not matter).

Depreciation procedure

For the object to be registered in the balance sheet as a fixed asset, it does not matter at what point in time it starts to be used. It must be in a state sufficient for its use. This rule also applies to property objects subject to mandatory registration with state bodies. Guidelines No. 91n states that any real estate should be immediately registered as soon as the initial cost of the depreciable property is calculated. That is, the owner does not have any need to wait for the moment of legalization of the rights to the object after the submission of the relevant documents to the registration authority.

After the month in which the property was taken into account, depreciation begins to accrue every month. The period of its accrual completely coincides with the life of the fixed asset. Accordingly, depreciation deductions end after the month in which the property object is completely written off from the balance sheet of a company or organization.

Depreciation is accrued evenly until the end of the life of the object. It only terminates if:

the OS is being modernized and reconstructed, and the duration of these works is more than one year;
fixed assets were frozen for a period of three months.

The rest of the time, depreciation charges should be regular. Depreciation is charged without taking into account the fact of using fixed assets, even if the work is seasonal, or equipment is being repaired at the facility.

Operating period of the OS

To calculate the useful life (SLI) of a property object, the following parameters are taken into account:

work schedule and number of shifts;
influence of the surrounding aggressive environment;
the period of operation given in the accompanying documentation for the OS;
additional restrictions on the use (contractual, regulatory, legal, etc.).

Each company independently establishes the SPI in accordance with the document RAS 6/97 dated January 1, 1998. Most companies prefer to apply the tax classification of fixed assets, subdivided into various depreciation groups. This possibility was provided for by a special Decree of the Government of the Russian Federation No. 1, appointed on January 1, 2002.

Methods for determining the SPI, in accordance with clause 7 in PBU 1/2008, are without fail fixed in the accounting policy of the institution. The predetermined period of application does not need to be revised, except for those moments when the organization is carrying out repair work on the OS, which increases the previous performance of the object. This may be, for example, modernization, reconstruction and other restoration activities.

But in this situation, it is worth paying special attention to the fact that each institution has the statutory right to independently decide on the revision of the LFS of the reconstructed object and whether the service life needs to be changed or not.

OS previously operated

If an entity acquires an object that has already been used, the calculation of the depreciable cost is carried out in the standard manner, but with the mandatory inclusion of all costs associated with the acquisition of this object.

At the same time, its service life should be reduced by the time of actual use by the previous owner. And only in this case, depreciation is assigned based on the newly calculated time of the property's service life.

Depreciation Calculation Methods

Currently, in practice, accounting uses several methods for calculating depreciation, based on clause 18 of PBU 6/01. When applying any of them, the depreciable cost is first calculated - this is a necessary condition for further calculations.

If a depreciation method has already been assigned to an object in operation, then it cannot be changed for the entire time of its operation. Also, in the balance sheet, all fixed assets are often combined into similar groups by type (for example, transport, facilities, etc.). At the same time, to simplify the calculations, for all funds included in such a group, the same method of calculating depreciation is used.

However, it should be noted that the principle of creating homogeneous groups is by no means spelled out in official documents. But experienced accountants recommend creating groups of property objects, given their main purpose. In this case, you can follow the Guidelines No. 91n, where there are examples of such groups of objects as transport, buildings, etc. The provision on combining various OS into groups should be entered into the accounting policy of the institution.

All changes in the organizational documents of accounting should come into effect on January 1 of the year following the year of the adoption of the approved order. This rule applies, in particular, to those changes to which the calculation of amortized cost will be subject.

The company, not taking into account the chosen method of depreciation, must calculate in advance the amount of depreciation deductions written off for the year. The exception is the calculation of deductions in proportion to the volume, where depreciation has to be calculated every month according to a predetermined formula.

Linear

The simplest to calculate and most common is the straight-line method of calculating depreciable cost. The result of accruals when calculating the annual depreciation in this case is calculated as the initial cost of the depreciable property, taking into account all possible costs, multiplied by the depreciation rate, calculated due to the time of operation of the property object.

Formulas

H a \u003d 100%: SPI,

where N a is the derived depreciation rate, and SPI is the number of years of the OS service period.

A g \u003d P c x H a,

where H a is the derived depreciation rate, P s is the initial purchase price of the fixed assets, A d is the annual depreciation rate.

A m \u003d A g: 12,

where A m - depreciation calculated per month, A g - annual depreciation rate.

declining balance

The use of this method is most optimal in accounting, subject to a gradual decrease in the effectiveness of the use of property. The annual depreciation is calculated by multiplying the residual value, the derived depreciation rate calculated from the SPI OS, and the acceleration indicator, which has a value of no more than 3.

The size of the coefficient must be predetermined in the accounting policy of the institution. Organizations do not have the authority to spontaneously set this coefficient; when introducing it, it is necessary to rely on regulatory documents that determine the conditions under which accelerated depreciation is permissible.

Calculation formulas

A g \u003d O c x N a x K usk,

where A g is the calculated annual depreciation rate, H a is the derived depreciation rate, K usk is the acceleration rate, O c is the residual price.

The residual value of a depreciable property is calculated as the original purchase price minus all accrued depreciation over the past service life of the property.

By the sum of the numbers of the years of the SPI

Under this method, depreciation equals the original purchase price of the acquisition multiplied by the amount of time remaining before the completion of the FIA, and then divided by the sum of the number of years of the FIA.

Formula

A g \u003d P with x CL SPI: SCHL SPI,

where А r is the depreciation rate for the year, SCHL SPI is the total number of years of SPI, CL SPI is the number of years of SPI, P s is the initial depreciable cost of the asset.

In proportion to the volume of products produced

This type of depreciation payment is calculated every month as the value of all manufactured products in a particular month, multiplied by the initial purchase cost of the depreciable property, and divided by the entire output for the entire period of use.

Formula

A m \u003d P c x OV f: OV p,

where A m is the depreciation rate calculated for the month, OV f is the coverage of monthly products, P s is the initial cost of the object, taking into account costs, OV p is the estimated coverage of the entire output for the entire time.

Examples

In December, the Vinni company purchased a honey bottling line, the total cost of which was 240 thousand rubles, and the FIT was 5 years. It is necessary to calculate the depreciation of the acquired enterprise, taking into account all available conditions.

1. Using the Linear Method.

H a \u003d 100%: 5 \u003d 20%;

A r \u003d 240,000 x 20% \u003d 48,000;

A m \u003d 48,000: 12 \u003d 4000.

2. The use of a gradually decreasing balance at K usk \u003d 1.

1 year: A g \u003d 240,000 x 20% x 1 \u003d 48,000, O c \u003d 240,000 - 48,000 \u003d 192,000;

Year 2: A g \u003d 192,000 x 20% \u003d 38,400, O c \u003d 240,000 - 48,000 - 38,400 \u003d 153,600;

Year 3: A g \u003d 153,600 x 20% \u003d 30,720, O c \u003d 122,880;

4th year: A g \u003d 122 880 x 20% \u003d 24 576, O s \u003d 98 304;

Year 5: In the final year, the final depreciation rate is calculated as the residual value of the depreciable property minus the value at disposal. Let's say that the line can be sold after a year for 50,000 rubles. Then the annual depreciation would be 48,304 (98,304 minus 50,000).

3. Write-off of the cost of the folded number of years of FTI.

NSP SPI \u003d 1 + 2 + 3 + 4 + 5 \u003d 15;

1 year: A r \u003d 240,000 x 5:15 \u003d 80,000;

Year 2: A r \u003d 240,000 x 4: 15 \u003d 64,000;

Year 3: A r \u003d 240,000 x 3: 15 \u003d 48,000;

Year 4: A r \u003d 240,000 x 2: 15 \u003d 32,000;

Year 5: A r \u003d 240,000 x 1: 15 \u003d 16,000.

4. Write-off of cost depending on the volume of output.

Suppose that the company "Superpan" purchased a machine for 120,000 rubles. According to the attached documentation, it can be used to produce one hundred thousand caps. For the first month, 9 thousand caps were produced, for the second - 5 thousand. Then:

1 month: A m \u003d 120,000 x 9000: 100,000 \u003d 10,800 rubles.

2 month: A m \u003d 120,000 x 5000: 100,000 \u003d 6000 rubles. etc.

In all of the examples given, the depreciable replacement cost will be the total amount of depreciation accumulated over a period of time. For example, in the latter case, when calculating for two months, it will be equal to 16,800 (10,800 + 6,000).

Depreciation of intangible assets

Intangible assets are of the following types:

these are the rights to programs, trademarks, inventions, selective achievements, unique models;
The goodwill of a firm is the difference between a firm's purchase price and its net asset value.

Usually, the period of use of intangible assets is determined by the validity period of the certificate, accompanying patent, etc. If it is difficult to determine it, the accountant must identify it, taking into account PBU 14/2007. The deduced period of operation cannot be longer than the period of operation of the company itself.

Typically, depreciation of intangible assets is accrued on a straight-line basis over the entire life of the asset. However, the use of additional depreciation methods is also allowed.

Amortized accruals of the goodwill of the company are carried out over 20 years (if this period does not exceed the period of operation of the company) on a straight-line basis. This procedure for deductions is predetermined by clause 44 of PBU 14/2007.

A group of homogeneous intangible assets must use the same depreciation method. The depreciable cost of an asset is calculated by analogy with fixed assets.

Amortization of financial instruments

Financial liabilities represent obligatory payments of the enterprise, stipulated by financial agreements. Financial assets are presented from a combination of securities and cash, which allow the company to receive additional income.

Depreciation is calculated using the effective interest method as the difference between the original purchase price and the price at maturity, less the write-off of bad debts and the impairment of securities. And the depreciable cost is the purchase price of financial assets and liabilities minus payments made to pay the debt +/- depreciation.

The effective interest rate is needed to discount expected payments over a certain period of time. Discounting is done at the compound interest rate. In other words, the effective rate is the level of income in relation to their repayment, indicates the rate of return of finance.

Formula for calculating compound interest:

Fn = P x (1 + i) n ,

where Fn - future payments, P - current value of the asset, I - interest rate, n - period for which the payment is calculated.

Example

The bank issued a loan for 100 thousand rubles, which must be repaid in 5 years in the amount of 150 thousand rubles. When these data are substituted into the formula, the following equation is obtained:

150,000 = 100,000 x (1 + i) 5 . Hence I = 0.0845 x 100% = 8.45%. Then the interest calculation will look like this:

1 year: 100,000 x 1.0845 = 108,450 - depreciable costs at the end of the year;

Year 2: 108,450 x 1.0845 = 11,7614;

Year 3: 117,614 x 1.0845 = 127,552;

Year 4: 127,552 x 1.0845 = 138,330;

Year 5: 138,330 x 1.0845 = 150,000.

Similarly, calculations are carried out with an already known interest rate.

Summarizing

As can be seen from all of the above, the depreciable cost is the purchase price of the assets less the cost of their liquidation. Depreciation also allows you to gradually write off the entire depreciated cost of the property with the subsequent release of cash. As a result, it turns out that the organization or enterprise fully pays off the costs of acquiring real estate.