Initial cost and amount of accrued depreciation;
Conducted revaluations, repairs;
Reasons for leaving with their justification;
Condition of main parts, parts, assemblies, structural elements.
The act of writing off a fixed asset item is approved by the head of the organization.
Based on the executed act on the write-off of fixed assets, transferred to the accounting service of the organization, a note is made on the inventory card about the disposal of the fixed asset item. The corresponding entries on the disposal of a fixed asset item are also made in a document opened at its location. Inventory cards for retired fixed assets are stored for a period established by the head of the organization in accordance with the rules for organizing state archival affairs, but not less than five years.
§ Act on write-off of fixed assets (except for vehicles) (form OS-4);
§ Act on write-off of motor vehicles (form No. OS-4a);
§ Act on the write-off of groups of fixed assets (except for vehicles) (form No. OS-4b).
The acts are drawn up in two copies, signed by members of the commission appointed by the head of the organization, and approved by the head or his authorized person.
The first copy is transferred to the accounting department, the second copy remains with the person responsible for the safety of fixed assets, and is the basis for the delivery to the warehouse and sale of material assets and scrap metal remaining as a result of write-off.
If a vehicle is written off, a document confirming its deregistration with the State Road Safety Inspectorate of the Ministry of Internal Affairs of the Russian Federation is also sent to the accounting department along with the report.
The act of writing off fixed assets can act not only as an accounting document, but also as a tax accounting register.
ACCOUNTING
In accordance with paragraph 29 of PBU 6/01, the cost of a disposed fixed asset item is subject to write-off from accounting.
Expenses from writing off fixed assets from accounting are operating expenses in accordance with paragraph 11 of PBU 10/99.
We have already noted that in order to account for the disposal of fixed assets, it is advisable to open a separate sub-account “Retirement of fixed assets” to account 01 “Fixed Assets”, to the debit of which should be transferred the cost of the disposed object, and to the credit – the amount of accumulated depreciation.
The residual value of the object is written off from the credit account, subaccount “Disposal of fixed assets”, to the debit of account 91 “Other income and expenses”, subaccount 91-2 “Other expenses”. In this case, the equipment is zero, since depreciation on it has been fully accrued.
Expenses associated with the liquidation of equipment are written off to the debit of account 91 “Other income and expenses”, subaccount 91-2 “Other expenses”, in correspondence with account 23 “Auxiliary production”.
Material assets remaining from the write-off of fixed assets that are unsuitable for restoration and further use are accounted for at market value on the date of write-off and the corresponding amount is credited to financial results. This procedure for accounting for material assets received as a result of write-off of fixed assets is established by paragraph 54 of Regulation No. 34n.
Acceptance for accounting of spare parts and scrap metal suitable for further use is reflected in the debit of account 10 “Materials”, in correspondence with the credit of account 91 “Other income and expenses”, subaccount 91-1 “Other income”.
Example.
In October 2004, the organization liquidated production equipment, the depreciation of which was fully accrued, with an original cost of 270,000 rubles. The dismantling and removal of equipment was carried out by auxiliary production forces. The expenses of the auxiliary production workshop amounted to 18,000 rubles. During disassembly, suitable spare parts were capitalized at a market value of 11,600 rubles, as well as scrap metal at a cost of 800 rubles.
The following subaccount names are used in the table below:
01-1 “Fixed assets in operation”;
01-2 “Disposal of fixed assets.”
|
Account correspondence |
Sum, rubles |
||
|
Debit |
Credit |
||
|
The original cost of liquidated equipment has been written off |
|||
|
The amount of accrued depreciation is written off |
|||
|
The costs of auxiliary production for equipment dismantling are reflected |
|||
|
Spare parts received during equipment dismantling were capitalized |
|||
|
Scrap metal received during dismantling was capitalized |
|||
|
The balance of other income and expenses is written off (18000 – 11600 – 800) |
|||
TAX ACCOUNTING
In accordance with subparagraph 8 of paragraph 1 of Article 265 of the Tax Code of the Russian Federation, expenses for the liquidation of fixed assets decommissioned, including the amount of underaccrued depreciation, are included in non-operating expenses not related to production and sales, which reduce the tax base for income tax.
In many cases, when liquidating fixed assets, spare parts, materials, scrap metal and other materials are obtained. According to paragraph 13 of Article 250 of the Tax Code of the Russian Federation, income in the form of the cost of received materials or other property during dismantling or disassembly, during the liquidation of fixed assets taken out of service, is recognized as non-operating income.
The date of recognition of income and expenses from the liquidation of a fixed asset depends on which method is chosen by the organization - the accrual method or the cash method.
In accordance with subparagraph 8 of paragraph 4 of Article 271 of the Tax Code of the Russian Federation, an organization that determines income and expenses on an accrual basis recognizes the value of property received upon liquidation of a fixed asset as non-operating income on the date of drawing up the act of liquidation of depreciable property.
Under the cash method, such income is recognized at the time of capitalization of property in accordance with paragraph 2 of Article 273 of the Tax Code of the Russian Federation.
As a rule, as a result of the liquidation of fixed assets, organizations receive a loss. The amount of the loss can be taken into account when taxing profits for the period in which the loss was incurred.
Let's use the data from the example given above and determine the amount of non-operating income and the amount of expense that will be taken into account for profit tax purposes.
Non-operating expense - expenses for dismantling fixed assets in the amount of 18,000 rubles.
Non-operating income - the cost of capitalized spare parts and scrap metal in the amount of 12,400 rubles.
You can find out more about the issues of accounting and taxation of transactions with fixed assets in the book of JSC “BKR Intercom-Audit” “Fixed Assets”.
The organization has the right to write off equipment that it no longer uses and does not intend to use (and from an accounting point of view, it is even obliged to do this). According to paragraph 125 of the Methodological Guidelines for Accounting for Inventories, this event involves the participation of the Commission, which, in particular: a) conducts a direct inspection of materials; b) establishes the reasons for the unsuitability of materials for use (violation of storage conditions due to fire, natural disasters, etc.); c) determines the possibility of using materials for other purposes or selling them; d) draws up an act for the write-off of materials (an act is drawn up for each division of the organization for the financially responsible persons); e) submits the act for approval to the head of the organization or his authorized person; f) conducts, together with the economic services (specialists) of the organization, an assessment of the cost of waste (scrap, scrap, etc.); h) exercises control over the disposal of materials unsuitable for further use. The write-off is formalized by an act containing information about the property being written off, including the name, quantity, accounting value, shelf life, date of receipt, as well as the reasons for the write-off (in your case, this could be, among other things, obsolescence). The act is approved by the head of the organization or a person authorized by him. Decommissioned equipment must be recycled. If waste is generated in this case, it is valued at the price of possible use and credited at the specified value to other income. And the cost of the equipment itself and the amount of costs for its liquidation (disposal) are included in other expenses (in accounting). For tax purposes, the cost of this equipment can also be recognized as expenses on the basis of subclause. 20 clause 1 art. 265 of the Tax Code of the Russian Federation (provided that its obsolescence is truly confirmed in such a way that it does not raise doubts among the tax authorities about the economic justification of this decision of the organization). However, it must be taken into account that regulatory authorities tend to refuse to recognize expenses for writing off equipment that was not previously put into operation (for example, Letter of the Ministry of Finance of Russia dated July 21, 2011 N 03-03-06/1/428). Some courts do not agree with this (for example, Resolution of the Federal Antimonopoly Service of the Volga District of April 15, 2008 N A57-13824/06-17), and some support the position of the regulatory authorities (Resolution of the Federal Antimonopoly Service of the Volga-Vyatka District dated February 28, 2008 in case No. A82- 1815/2006-14). Thus, when recognizing these expenses for income tax, the organization will face the risk of tax claims; the likelihood of winning a tax dispute in court exists, but is not high. Note that the Ministry of Finance also expresses the opinion that when writing off equipment, it is necessary to restore VAT, which was previously accepted for deduction on this equipment (for example, Letter of the Ministry of Finance of Russia dated July 5, 2011 N 03-03-06/1/397). But this opinion is not based on the Tax Code of the Russian Federation and in most cases is refuted in court (for example, Resolution of the Federal Antimonopoly Service of the Volga-Vyatka District dated 09.09.2011 in case No. A17-5842/2010).
Expert recommendation
Writing off equipment that an organization will no longer use is correct from the point of view of generating reliable financial statements. But at the same time, the organization faces the risks of tax authorities refusing to recognize expenses in the form of the cost of written-off equipment for income tax purposes and the risks of filing a claim for the restoration of VAT, which was accepted for deduction when purchasing this equipment. There are prospects for a legal dispute on this issue, but the probability of winning is not one hundred percent.
Successful economic activity of an economic entity is not possible without the participation of fixed and working capital in it. If raw materials and materials are used in the production process only once, then fixed assets wear out and become unusable gradually. As a result, the operation of such funds becomes economically unfeasible for the enterprise, and they need to be written off. After this, waste remains in the form of scrap metal, spare parts, which must be reflected in accounting and do not forget to calculate the amount of income subject to taxation when selling scrap metal. In this article we will look at how fixed assets are written off for scrap metal.
Sequence of actions for writing off OS for scrap metal
If the use of property has become economically unprofitable for the enterprise, then it is necessary to take certain actions to write it off, the sequence of which is:
- creation of a liquidation commission for the purpose of forming its conclusion on the condition of the property;
- adoption by the head of the enterprise of a final decision on the liquidation of fixed assets and their write-off in accounting based on the results of the commission’s activities. This is formalized by order;
- formation of an act of write-off of fixed assets;
- entering information about the object that is being written off into documents (about physical and moral wear and tear or about another reason for disposal).
How to write off fixed assets?
Write-off of fixed assets, regardless of the reason, like any other business transaction, requires mandatory documentation. In order for such an operation to be carried out in compliance with the law, two documents are required:
- order of the head of the enterprise on the liquidation of a fixed asset;
- act on write-off of a fixed asset (or group of objects).
A specific standard form of the order has not been established to date, and the write-off act must be unified. The following types of this document are currently used:
- (except for vehicles);
- (for vehicles);
- OS form - 4b (except for vehicles for groups of property).
The write-off act is filled out in two copies, one of them is given to the accounting department, and the other is taken by the financially responsible person. Based on this document, which is signed by all members of the liquidation commission and approved by the manager, the scrap metal obtained from the liquidation of the facility is delivered to the warehouse. If a vehicle is written off, a document is attached to the write-off report that confirms its deregistration with the traffic police.
The document must necessarily indicate the initial or replacement cost, the amount of wear and tear over the entire period of operation, the amount of costs associated with the write-off of the property, and data on the valuables received after its dismantling.
Accounting for written-off fixed assets
Accounting for write-off of fixed assets for scrap metal is based on paragraphs. 29-31 section 5 PBU 6/1 and Guidelines for accounting of fixed assets (clause 84).
To account for such operations, a separate sub-account is opened under account 01. The initial cost of the objects that need to be written off is transferred to its debit, and the accrued depreciation on them during the period of operation is transferred to credit. Upon disposal, the residual value is credited to this subaccount to profit and loss as an operating expense. This also includes expenses arising in connection with the liquidation procedure. In the credit of the “Profit and Loss” account, income related to the write-off of fixed assets is reflected. These include the cost of scrap metal obtained from the liquidation of the facility.
Expenses resulting from the dismantling of fixed assets can be accounted for as:
- non-operating (if write-off is justified by moral or physical wear and tear);
- emergency (if the write-off is caused by some emergency).
The order of correspondence accounts for write-off of property in accounting is different and depends on the reason for which they were retired and some other factors.
Account correspondence | ||
| Debit | ||
| 01 | the initial (replacement) cost of the property that is being liquidated | |
| 02 | 01 (sub-account “Disposal of fixed assets” | Accumulated depreciation is written off |
| 91/2, 99 | The residual value is written off | |
| 91/2, 99 | 23, 25, 70, 69 | Liquidation expenses are written off |
| Capitalization of scrap metal received after dismantling | ||
Accounting for assets when their useful life has expired
This is the most common reason for write-offs. After its completion, the object can be further exploited. In this case, depreciation stops accruing as soon as its value is equal to the original cost. The procedure for documenting and drawing up entries does not depend on how much they were used for their intended purpose after write-off.
After the liquidation is completed, the balance of account 01 for this object should be reset to zero. Expenses incurred during dismantling are recorded in the debit of account 91, and scrap metal obtained from dismantling is recorded in the debit of account 10 in the “other materials” subaccount.
The cost of scrap metal obtained during the liquidation of fixed assets is determined at market prices, and spare parts and other materials are adjusted taking into account their wear and tear.
Example #1. After the liquidation of a completely depreciated machine, the original cost of which was 45,000 rubles, scrap metal was received, valued by the commission at 3,000 rubles. Dismantling costs amounted to 10,000 rubles (worker wages 7,000 rubles, unified social tax - 3,000 rubles).
Equipment disposal operations should be reflected as follows:
Dt 01/sub-account “Disposal of fixed assets” Kt 01 = 45000
Dt 02 Kt 01/subaccount “Disposal of fixed assets” = 45000
Dt 10 Kt 91 “Other income” = 3000
Dt91 “Other expenses” Kt 70 = 7000
Dt 91 “Other expenses” Kt 69 =37000
or Dt 23 Kt 70, and then Dt 91 Kt 23 - for the amount of salary and unified social tax.
Accounting for fixed assets when the useful life has not expired
It is not always economically profitable for an enterprise to use fixed assets, even if they have not yet been fully depreciated. This applies, first of all, to obsolete objects. Fixed assets can be written off by an enterprise if a decision has been made to change the type of activity, and the sale of such objects is unprofitable for various reasons.
In this case, its initial cost will be greater than the total depreciation on it. This means that there is a balance on the debit of account 01, which should be written off to account 91. In this case, the cost of scrap metal, which is received after dismantling, is taken into account in the order described earlier.
| Account correspondence | Contents of a business transaction | |
| Debit | Credit | |
| 01 (sub-account “Disposal of fixed assets” | 01 | the original (replacement) cost of the property that needs to be dismantled |
| 02 | 01 (sub-account “Disposal of fixed assets” | Write-off of accrued depreciation |
| 91 | O1 (sub-account “Disposal of fixed assets” | Write-off of residual value |
| 91 | Capitalization of scrap metal received from liquidation |
|
Fixed assets can be liquidated completely or in parts. For example, when an object is large and part of it is dismantled, it is not subsequently replaced and the functions remain unchanged, then we can talk about partial liquidation. As a result, not only the value of the property decreases, but also the rate of wear and tear.
Example #2. An economic entity decided to liquidate outdated faulty equipment with an initial cost of 20,000 rubles. 3,000 rubles worth of materials were spent on its dismantling. The accumulated depreciation amounted to 15,000 rubles. As a result of dismantling, scrap metal worth 3,000 rubles was obtained.
Equipment dismantling operations should be reflected as follows:
Debit 01/subaccount “Disposal of fixed assets” Credit 01 = 20000
Debit 02 Credit 01/subaccount “Disposal of fixed assets” = 15000
Debit 91 Credit 01/subaccount “Disposal of fixed assets” = 5000 (under-depreciated part of the cost)
Debit 10 Credit 91 =3000 (cost of scrap metal)
Debit 91 Credit 10 = 3000 (dismantling costs)
or Debit 23 Credit 10 and then Debit 91 Credit 23
How to deliver scrap metal obtained from dismantling to the parish?
In order to put scrap metal received from the dismantling of fixed assets on the balance sheet, it is necessary to draw up an act on the receipt of the MC if the building is dismantled, and an invoice in other cases. It must indicate the market value of scrap metal, which will subsequently determine the amount of other income of the enterprise from such operations. When determining the cost of waste, you should take into account the date of its acceptance for accounting and the market valuation, that is, the price that can be obtained when selling scrap metal. Market valuation can be set in different ways. For example, relying on official data from exchanges, statistics bodies, pricing, appraisal expertise, the media, that is, on information from any official source.
Answers to pressing questions
Question No. 1. Is it possible that the chief accountant of the enterprise is appointed as the chief chairman of the liquidation commission?
Yes, such a situation is possible. Regulatory legal acts in the field of accounting do not contain any restrictions in this matter. Thus, the chairman of the commission for writing off fixed assets can be any employee of the enterprise appointed by its head.
Question No. 2. Is it necessary to issue an order from the head of the organization in order to write off a fixed asset?
Yes, such a document must be drawn up, since on the basis of it the act of form OS-4 is filled out. The order can be drawn up arbitrarily, since its unified form has not been established.
Question #3. Is it possible to write off a fixed asset if not all members of the liquidation commission are present when drawing up the write-off act?
No you can not. This is due to the fact that all members of the commission are required to sign the act. If the signature is valid, but the employee was not present, then such an action will be considered illegal. Therefore, when unforeseen circumstances arise, for example, a commission member gets sick or goes on vacation, the head of the organization must issue an order appointing a replacement.
Question #4. How to correctly justify the reason for writing off an obsolete, but not fully depreciated fixed asset?
So that during an audit the tax authorities do not have questions about why fixed assets were written off, it should be clearly formulated and documented. For example, in the write-off act, it is necessary to indicate the inappropriateness of the subsequent use of the object due to the fact that repairs cannot be carried out, or because it has become morally or physically worn out. Based on such marks, you need to make entries in inventory cards or books of fixed assets (OS-6a, OS-6b).
Question #5. How to correctly show in accounting transactions related to the liquidation of unfinished construction and the capitalization of the resulting scrap metal?
Since the costs of unfinished construction are classified as capital investments, and have not yet been transferred to fixed assets, the cost of such an object upon liquidation must be written off as other expenses:
Debit 91 Credit 08
Such an operation does not require the creation of a liquidation commission by order of the director of the organization and the execution of an act for writing off the fixed asset. But this does not mean that the write-off of unfinished construction may not be confirmed by primary documents. It is necessary to draw up an act in any form, since the law does not establish a unified one. Scrap metal remaining after the liquidation of such an object should be recorded at market value as part of other income:
Debit 10 Credit 91
Question No. 6. How to reflect the sale of scrap metal on accounting accounts?
When selling scrap metal:
Debit 91 Credit 10 – for write-off
Debit 62 Credit 91 – for the amount of proceeds from the sale.
Evgeniy Malyar
Article navigation
- How to write off fixed assets from the balance sheet
- Features of write-offs in budget structures
- General logic of actions
- Accountant's actions
- Write-off order
- Reasons for write-off
- Act on write-off of fixed assets
- Tables of the write-off act form
- Protocol for write-off of fixed assets
All fixed assets sooner or later become unusable. Machines, equipment, and even the capital buildings themselves are deteriorating and can no longer be used for their intended purpose. Ultimately, the fate of these non-current funds is to be written off the balance sheet. How to do this correctly will be discussed in this article.
How to write off fixed assets from the balance sheet
Fixed assets include expensive means of production that last more than a year. They are written off from the balance sheet of the enterprise for the following possible reasons:
- The funds are outdated (physically or morally), that is, they have served their service life;
- They were sold to a third party;
- They were exchanged for something useful, for which a barter agreement was concluded;
- Given as a gift to a legal entity or individual;
- Equipment or other property is hopelessly damaged as a result of an accident;
- It wore out prematurely;
- It was stolen (more often accountants and lawyers use the word “stolen”, however, this does not change the essence).
In each of the listed situations, documentation is required, which includes recording the reasons on paper and reflecting the relevant business transactions in the financial statements.
According to paragraph 28 of the Accounting Rules (PBU 6/01), fixed assets are subject to write-off, the use of which cannot bring financial benefit to the enterprise.
Features of write-offs in budget structures
In budgetary institutions, the procedure for writing off obsolete, destroyed or stolen non-current assets is somewhat different from the norms in force for commercial structures. This is due to the fact that the owner of fixed assets in this case is the state, and therefore in many cases permission from a higher authority is required for the right to dispose of particularly valuable property on the balance sheet (the list of items is given in Law No. 7-FZ, Article 9.2, paragraph 11) . There are objects that the heads of budgetary organizations can write off themselves, if they are not included in the authorized capital of other companies. The general principle of withdrawal from the balance, however, remains the same.
General logic of actions
In a situation where the write-off of deteriorated property on the balance sheet becomes an urgent task, the issue of execution is decided by the head of the enterprise, who issues an order to create a liquidation commission.
In turn, the commission, fulfilling this order, draws up an act. There is a story ahead about how these processes should take place, but it should be understood that they are the ones that give the accounting department the basis for making entries. Everything else is a matter of technique.
The chart of accounts did not change in 2019, and there is reason to assume that it will remain unchanged in the near future. The commission's conclusion consists of stating the actual condition of the property, assessing the feasibility of its further use and the validity of liquidation. In some cases (when it is difficult or impossible to come to some conclusions on your own), outside experts are invited.
Write-off of fixed assets is carried out in accordance with the form established for each specific case, approved by the Ministry of Finance. If you have difficulty filling out the forms, you can use a sample.
Download sample
Accountant's actions
Depending on the reason why the property needs to be removed from the balance sheet, the correspondent accounts involved in this operation change. The most common types of postings are discussed below.
The property is partially or completely worn out
The simplest case is when an object “died a natural death,” that is, it completely exhausted its service life, and after that it safely failed. In this case, it has no value in monetary terms, since it is completely depreciated. After the act is drawn up and signed by the members of the commission, and then endorsed by the head, the accounting department can deregister the asset without disturbing the balance, making an entry between subaccount 01.1 (at original cost) and 01.2 (the amount of full depreciation).
With premature moral or physical wear and tear, the task becomes more difficult. On the balance sheet asset is the full amount of the initial costs for the acquisition of the object (subaccount 01.1), on the other hand, depreciation is accrued incompletely, that is, an object with a residual value is subject to write-off, which is very simple to determine (you need to subtract the amount of depreciation from the initial cost). The wiring will look like this:
On loan account 01–1, the full value of the liquidated asset is written off to debit 01.2. Then depreciation is written off from the account. 02. Then follows the posting of depreciation amounts (Dt 02 - Kt 01.1). As a result, account 01.2 receives the residual value of the property (the difference between the debit and credit of account 01.2). The “under-depreciated” part is accounted for as expenses and written off on account 91.2 (Dt 91.2 – Kt 01.2). The account is closed.
Asset sold
The basis for write-off are two documents - the act of the liquidation commission and the purchase and sale agreement. The wiring is as follows:
- Dt01 – Kt01.1 – the initial cost of the property is entered;
- Dt02 – Kt01 “Disposal” – for the amount of depreciation;
- Dt91.2 – Kt01 – for the residual value of the object of sale;
- Dt62 – Kt91.1 – revenue (amount of agreement);
- Dt91.2 – Kt68.2 – VAT is charged.
The property was transferred to the authorized capital of another company (share contribution)
Property that is of no value to one owner may be useful to another. If the written-off asset acquires the quality of a share contribution, the accounting department uses account 58. Postings:
- Dt01 – Kt01.1 – at the original cost;
- Dt02 – Kt01 – for accumulated depreciation;
- Dt91.2 – Kt01 – for residual value;
- Dt58 – Kt01 – the amount of contribution to the authorized capital of the enterprise receiving the asset.
VAT is not charged, since the share contribution is not a sale.
The object is transferred free of charge (donated)
Yes, this can happen, but it is important that behind the act of gratuitous assistance there is not a hidden sale (for cash), which is a violation of the law. The write-off procedure is approximately the same as for sale or depreciation (VAT is calculated based on the market price of the asset), with the difference that the posting of Dt99 - Kt91.9 is carried out for the amount of the financial result (actually the sacrificed loss).
Partial liquidation
Most often this situation arises in relation to real estate. Anything else is difficult to write off completely, but some of the buildings, for example, inside a plant, can actually be demolished. At the same time, the main part of the workshops remains and functions, but the total value of assets and the amount of their depreciation charges are reduced. Transactions are reflected in account 91.
Write-off order
The procedure for writing off fixed assets does not provide for an order as such. The management, by issuing such a document, expresses its intention to liquidate any expensive object “hanging” on the balance sheet, and at the same time appoints executors, which probably constitutes the most important part of the text of such an order. The basis for the actions of the accounting department is not an order, but an agreement (if we are talking about exchange, donation, sale or any other method of alienation) or an act on the complete unsuitability of the object for use.
However, many companies have a practice according to which the initiation of write-off is expressed by order. There is no strictly approved form (unlike an act), but an approximate example may look like this:
Sample order
The document briefly justifies the decision to liquidate the named facility, most often due to the economic inexpediency of further operation and (or) repairs, as well as:
- A commission is appointed, which, as a rule, includes one of the managers of the enterprise (deputy director, chief engineer), the head of the department for whose needs the asset was used, a representative of the accounting department (usually the chief accountant), etc.;
- The goal is formulated;
- A commission chairman is appointed who is responsible for its work.
The order is signed by all the persons mentioned in it, for which their surnames with “shelves” are printed at the bottom of the sheet.
Reasons for write-off
The process of writing off fixed assets at any enterprise is inevitable. Not only does equipment naturally age, new types appear, but accidents and natural disasters occur, as a result of which property, movable and immovable, becomes unusable. Numerous examples of funds failing prematurely and unexpectedly could take up more than one page of neat text. There are often cases when cars, which are still completely new, are damaged in an accident to such an extent that there is nothing to repair, and it’s good if people do not suffer. Due to voltage surges or other disturbances in normal operating conditions, electronic and electrical equipment deteriorates. There is also such a thing as obsolescence, which often happens suddenly, when equipment that has not yet been physically worn out turns out to be unnecessary or intended for the production of a product that is no longer in demand.
The most common and expedient reason for writing off fixed assets is the impossibility of their further commercial use, and the costs of restoration are unreasonably high.
In recent years, new terms have emerged to describe previously unaccounted for reasons for early withdrawal of equipment:
Environmental aging. It means non-compliance with new environmental requirements adopted at the legislative level. If, for example, an enterprise's treatment facilities do not meet established standards, they should be replaced and the old ones written off along with dismantling costs;
Social wear and tear. In this case, the reason for write-off may be the adoption of legislative acts that reflect more stringent requirements for industrial relations, and, as a result, fixed assets.
Act on write-off of fixed assets
The requirements for the execution of acts of write-off of fixed assets are strict. In the forms approved by the State Statistics Committee of the Russian Federation (Resolution 7 of January 21, 2003), additions are allowed (if necessary), but any editing is possible with the written permission of the head of the organization and must be justified, but no columns can be excluded.
The OS-4 form of the same type is the most universal and therefore is used more often than others. You can easily download it for free on our website:
Download form OS-4
This form assumes the possibility of recycling suitable parts, mechanisms or assemblies and serves as the basis for their receipt in the warehouse, as well as further useful use for production purposes or sale.
The OS-4 act form is intended for writing off a wide range of assets, but to remove a vehicle from the balance sheet, another is used, OS-4a (or OS-4b for several objects) which is carried out in triplicate (one is intended for deregistering a car from the state registration with the traffic police) .
If property is alienated due to gratuitous transfer to another owner or is sold, then the form of the OS-1 act (acceptance and transfer) should be used.
In any case, the document contains a number of general required items:
- Reasons for liquidation of property;
- Description of the technical condition of the object identified as a result of the inspection carried out by the commission;
- Possibility and feasibility of restoration work;
- The degree of suitability of operable components, parts or parts of an object and their price in monetary terms;
- Reasonable argumentation for writing off the operating system;
- A defect report in the event of failure due to normal operational wear and tear, listing all existing defects.
In case of obsolescence, a defective act is not needed in the OS-4 form, but instead an order from the manager is attached.
Tables of the write-off act form
The main responsibility of the members of the liquidation commission is to fill out three tables contained in the OS forms.
- The first of them is intended for entering information contained in the acceptance certificate, on the basis of which the equipment was used in production during the period preceding the write-off, general information about it (lifetime and accrued depreciation);
- The second table should contain information about the property being written off, the presence of precious metals in its parts and other information from acts OS-1, OS-1a and OS-1b.
- The third part records the costs of disassembling and recycling an object in order to extract useful components, as well as their cost.
With the exception of form OS-4b, all others are made in two copies, one of which is transferred to the accountant and serves as the basis for postings, and the second is given to the employee appointed responsible for the safety of written-off fixed assets, who delivers the recycled products to the warehouse.
Protocol for write-off of fixed assets
The process of writing off objects related to fixed assets (nowadays they are more often called non-current assets) is crowned by a meeting of the liquidation commission. Its approximate composition has already been listed, and it only remains to add that it can meet separately in each such case or be permanent, but in any case it includes representatives of management, accounting and production departments.
The result of the commission meeting is documented in a protocol with a package of documents attached to it, which are drawn up in any form. At the same time, the protocol must comply with several mandatory conditions specified in Decree of the Government of the Russian Federation No. 834 of October 14, 2010 and later annexes thereto, namely:
- Availability of quorum (at least 2/3 of the commission);
- The decision was made by a simple majority of the members of the commission present.
A typical sample protocol of the commission for writing off fixed assets in expanded form contains:
- Full name of the enterprise or organization;
- The word "Protocol";
- Number and date of compilation;
- Place of the meeting (usually the name of the locality is sufficient);
- Composition of the commission indicating those present;
- Agenda (that is, the write-off of which property is being discussed);
- Information about the debate (“listened to”);
- Result (“decided”);
- Voting result;
- Signatures of the commission members.
After this, if agreement is reached, the write-off process can be considered successfully completed.
The article will discuss the act of decommissioning equipment. What kind of document is this, what is its role, and how to prepare it correctly - further.
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The organization has equipment that wears out over time. It needs to be written off. How to do it? What document should I use?
General information
In order to keep records and control the production capacity of an organization, it is necessary to write off equipment in a timely manner, documenting it. From this moment it is written off from .
Drawed up in triplicate, certified by the signatures of the commission members and seal. Every year, the leading person of the organization is obliged to publish, which will write off the main resources.
It includes a deputy director, accountant, economist and workers. The following material assets are subject to write-off:
- which cannot be used in the future because they are unsuitable;
- do not exist based on inventory results;
- morally outdated;
- completely worn out;
- have damage.
The act must include the following information:
- its name;
- date of preparation and approval;
- name of the enterprise;
- name and number of the item to be written off;
- list of defects;
- defect parameters;
- data and commission members;
- their signatures.
When drawing up a document, there are nuances that should be adhered to. The main thing is to indicate the date (the one when the act was drawn up).
If the document was completed before registration, it is worth mentioning. The title must be specified in the prepositional or genitive case.
The text of the document should begin with an indication of the reason for drawing up the act. Basically, this is an order from the director. When decommissioning equipment, you must follow a certain procedure.
When the cost price is indicated, the following nuances should be indicated - the price during the purchase period, transportation costs, consultation fees, customs costs and the cost of intermediary services.
When drawing up a document, you must be guided by the following documents:
The document must be kept in the organization for 15 years. The following write-off rules must be observed:
- the technical condition of each object is determined individually;
- the required documentation is drawn up, which indicates the specific resources that have failed;
- an act is drawn up;
- permission is obtained from the director of the organization to write off these funds;
- dismantling or disposal is carried out;
- funds are debited from the account.
What it is
The act of writing off fixed resources is a document that serves as the basis for deregistration of an object. Certificate of technical condition of equipment – a document attached to the write-off report.
The document must contain the results of the examination and the necessary measurements. It is also necessary to describe in detail the current state of the equipment, what shortcomings were discovered, and how they can be eliminated.
The act should include the following information:
- where and when the inspection was carried out;
- information about experts;
- information about everyone who attended the inspection;
- name of the equipment being tested - brand, type, number, etc.;
- where the equipment is located;
- information about his work;
- under what conditions the inspection was carried out - time, devices;
- the opinion of each participant;
- results of the work;
- troubleshooting instructions;
- list of documentation used;
- signatures of participants.
What is the role of the document
Write-off is necessary in two cases - for further use of equipment or for disposal.
A write-off act is required in the following cases:
The process of writing off material assets is necessary for those assets that have become unusable - have lost their quality or have been damaged.
The document confirms the withdrawal of products from circulation for various reasons. The act gives formality to the write-off process. It also serves as the main document for checking equipment for unsuitability.
Legal regulation
The State Committee has developed its own typical form for writing off major resources.
According to the document adopted on December 6, 2001, organizations have the right to independently develop a form for a write-off act.
How to fill out the equipment decommissioning form
The document must be drawn up in two copies. One remains with, the second is given to the accountant.
When compiling, you must adhere to the following rules:
The act is drawn up in writing. The form of the form is not established by law. You can take it as a basis. The act has a header, which includes the name of the document, city and date of execution.
The main part describes equipment data and reasons for write-off. At the end, the commission makes the final decision. At the end of the form, indicate the members of the commission and put their signatures.
Filling nuances:
- the name and price of the product are the same as in;
- in the act you can highlight information about at what time and for what reason the equipment that is being written off was accepted;
- The total amount of funds written off must be written in capital letters.
Is the reason given?
When equipment wears out, it cannot be used in further activities. The property must be written off. An act is drawn up, one of the points in which is to indicate the reason for the write-off.
The reasons may be:
- sale of an asset;
- physical or moral wear and tear;
- liquidation in case of emergency;
- transfer of equipment as a contribution to the capital of another enterprise;
- or ;
- damage to property;
- partial liquidation during reconstruction;
- other situations.
The reasons are divided into 2 large groups - disposal and liquidation.
Morally obsolete
To determine whether obsolete equipment can be used in the future, a committee should be appointed. Her responsibilities include inspecting and establishing the reasons for the write-off.
Based on the results of the inspection, draw up a report indicating the following:
- date of acceptance of the equipment for accounting;
- year of manufacture, useful life;
- original cost and accrued depreciation;
- number of repairs;
- reason for write-off;
- in what condition are the main parts, parts, elements suitable for further use.
The act for decommissioning of gas-cutting equipment (or other equipment) is signed by the members of the commission and approved by the organization’s manager. Based on this, a note about disposal is made in the equipment inventory card.
The write-off procedure takes a lot of time. The action plan is as follows:
- Determine the technical condition of the object.
- Complete the required documentation.
- Obtain permission to write off.
- Disassemble the equipment.
- Capitalize possible returnable material assets.
- Sort and recycle.
- Write off the balance sheet.
The write-off process must be reflected in the accounting records. The wiring for this is as follows - D 105 00 000 K 401 01 172.
Computer technology
In their activities, enterprises are faced with electronic equipment that becomes obsolete over time. From this moment on, there is a need to write it off.
First, it is necessary to form a commission, which will be entrusted with the duties of writing off and drawing up a conclusion. The main thing is that the commission members understand office equipment and have the appropriate education.
The commission will include those appointed by the head of the organization. This must be confirmed by an order - indicating the responsible persons and the responsibilities of each.
After inspecting unsuitable equipment, it is necessary to draw up a conclusion - a report. The document describes in detail the reasons for write-off, identified defects, and recommendations for possible troubleshooting.
If some computer parts can be used in the future, then you need to determine their current market value. After this, draw up a statement for accepting office equipment for accounting.
The form of the act is OS-4. Indicate in it information about the object - name, when it was accepted for accounting, manufactured, what is its useful life, for what reason is it being retired. You will also need to write off computer equipment in accounting records.
Fallen into disrepair
The act has . Equipment is considered unusable when physical or moral wear and tear occurs.
The property may become unusable in terms of its technical characteristics - it cannot be repaired or is simply outdated. The write-off act is drawn up after the order of the head of the organization.
A commission is created that controls the inspection and write-off process. Disposal data must be reflected in the inventory card (stored for 5 years).
From fixed assets
To write off fixed assets, the OS-4 form is used. It is also compiled by a commission. It is necessary to issue it when the main resources can no longer be used.
The document should display the following information:
- what technical condition is the resource in?
- for what reason is it being liquidated;
- what is the initial cost of the object;
- amount of wear and tear during use;
- what are the liquidation costs;
- liquidation results;
- liquidation cost-to-revenue ratio.
After write-off, the object is removed from the organization’s balance sheet. The legislation does not oblige you to write off an asset - the organization can store it. In this case, the main resource will be listed as a capital asset.
Medical equipment
The quality of work in hospitals depends on good equipment. The basis is the following:
- the property has become unusable;
- cannot be restored;
- equipment does not exist as an integral object.
These factors must be present together. Otherwise, the write-off will be considered illegal. The procedure begins after the order of the clinic management. After this, the equipment must be disposed of.
Sample filling
For the write-off procedure to be successful, you must fill out the act correctly. First, fill out the “header” - indicate the name of the organization in full form, starting with a new line - the structural unit.
The act looks like a table. On the right side you must provide information about the write-off date and document number.
On the left side, data on financially responsible persons is entered, the basis for the write-off is indicated (in this case, an order). Below is the reason why equipment is retired, such as physical wear and tear.
To fully enter data about an object, you will need its technical passport and statements of accounts.
The first column of the table is reserved for the name of the equipment being written off. It should be the same as on the inventory card. The date of issue and put into use must also be present.
It is necessary to indicate the actual period of use, the original cost (or replacement cost), and the amount of depreciation.
The second section of the form is filled out if, during the decommissioning of the equipment, there are parts left that can be used in future activities. Members of the commission are required to sign at the bottom of the table.