How to calculate the depreciation of fixed assets (abstract)

The calculation of depreciation of fixed assets is one of the favorite topics for term papers and essays on accounting. To write an abstract on calculating depreciation correctly, you need to be well aware of all the methods for calculating depreciation, each of which is based on the accounting for the useful life of the objects.

You will need

• - paper and pen;

• - computer;

• - classification tables of fixed assets;

• - calculator.

Instruction manual

one

Calculate depreciation using the linear method. First, calculate the depreciation rate by dividing the total cost of an item of property, plant and equipment (at the time of purchase) by its useful life. For example, a car was purchased, and its useful life was set to 5 years (it belongs to group 3 by classification), therefore, the depreciation rate will be 20%. To calculate the annual depreciation, multiply the total cost of the car by the norm. If in the example the initial cost was 200, 000 rubles, then the annual rate will be 200, 000x20% = 40, 000 rubles.

2

Try to calculate the depreciation of fixed assets using the reduced balance method. In this case, start by calculating the depreciation rate with an acceleration factor (it is established by law separately for each type of property). For example, if the useful life is 5 years, and the acceleration coefficient is 2, then the norm will be 40% (estimated 20% increase by 2). Next, calculate the depreciation amount for the first year: 200, 000x40% = 80, 000 rubles. Please note that for the second year, the amount is considered already from the balance: 120 000x40% = 48 000 rubles.

3

If in your essay you plan to calculate depreciation based on the sum of the number of years of useful life, proceed as follows. First, determine the sum of the number of years, if the useful use according to the classification corresponds to 5 years, it will be 5 + 4 + 3 + 2 + 1 = 15. To calculate depreciation for the first year, multiply the initial value of the fixed asset by the number of years remaining until the end of the action and divide by 15. For example, if the object was worth 200, 000 rubles at the time of purchase, then in the first year the depreciation will be 200, 000x5 / 15 = 66, 666.66 rubles, in the second year - 200, 000x4 / 15 = 53, 333.34 rubles, etc.

4

Finish the practical part of the essay by calculating the depreciation of the volume of output. To do this, find out or calculate the estimated volume of production for the entire period of use. For example, a new car worth 200, 000 rubles must drive 500 thousand km in 5 years, and in the first year it has traveled 20 thousand km. In this case, calculate the annual depreciation as 200 000x20 / 500 = 8 000 rubles.