How to calculate depreciation rate

Fixed assets (used in production or for managerial needs for more than a year) are an important component of the company's property. During operation, they wear out and funds lost in this way must be replenished. The source of financing the reproduction of fixed assets is depreciation.

Instruction manual

1

The concept of "depreciation" is used in tax and accounting. Each of them provides several methods for calculating depreciation: tax accounting - linear and non-linear approaches, accounting? the method of writing off the value by the sum of the numbers of years of the useful life, the method of the reduced balance, the method of writing off the value in proportion to the volume of production and the linear method. For some of these approaches, it is necessary to calculate the depreciation rate (measured in percent).

2

In the linear calculation of depreciation, 100 should be divided by the useful life of the object (100 / n), with non-linear, the first digit in the formula is replaced by 200 (200 / n).

3

The organization determines the specific useful life of the facility (measured in months) based on several factors: regulatory and legal restrictions on use, expected life (depending on application capacity and expected productivity), and expected physical wear and tear (depends on natural conditions and operating mode).

4

As the main regulatory act determining the useful life, we can name the "Government Decree on the classification of fixed assets", which sets the service life for objects depending on their belonging to one of ten groups.

Decree of the Government of the Russian Federation on the classification of fixed assets