Property, plant and equipment are the assets of an enterprise with a useful life of more than a year. These include such property as buildings, structures, transport, and so on. In accounting and tax accounting, fixed assets are reflected on account 01. As a rule, depreciation (depreciation) is charged monthly, with the help of this, the initial amount is gradually written off. Some organizations carry out a revaluation of assets, that is, they clarify the replacement cost in order to equate it with the level of market prices.
Necessary
- - inventory cards of fixed assets;
- - cards for accounts 01, 02;
- - the accounting policy of the organization.
Instructions
Step 1
Revaluate only those funds for which you have ownership, that is, leased fixed assets cannot be overestimated. Perform this procedure as of the beginning of the reporting year.
Step 2
If you plan to revalue property, plant and equipment annually, write it down in the organization's accounting policy. Remember that you can only decrease or increase the value of homogeneous assets.
Step 3
Form a commission that will carry out this procedure. You, as a leader, must certainly be a part of this composition. The chief accountant is also a mandatory person. Record this information in the accounting policy.
Step 4
Before reassessing, make an inventory, that is, check the actual availability of assets in the organization, and what is reflected in the accounting. To carry out this procedure, also appoint an inventory commission. Before that, be sure to take a receipt from the materially responsible person that all documentation has been submitted to the accounting department.
Step 5
After completing the inventory, issue an order for the revaluation of fixed assets, where you list the composition of the commission, the name of the revalued assets, the period of the procedure.
Step 6
Then, together with the members of the commission, inspect the assets, record their technical condition in a statement, the form of which is arbitrary. In this document, indicate the name of assets, inventory numbers, dates of all transactions reflecting the movement of the asset. Also record the original cost and the depreciation charge. At the end, put in the amount received after the revaluation.
Step 7
After that, transfer the statement to the accounting department, which will make the appropriate entries.
In case of revaluation:
- D01 K83, 84 (the initial cost of fixed assets has been increased);
- D83, 84 K02 (the amount of depreciation deductions has been reduced).
In case of markdown:
- D84, 83 K01 (the initial cost of fixed assets is reduced);
- D02 K83, 84 (the amount of depreciation deductions has been increased).
