What is it, how is it formed and how to calculate?

Mistakes to avoid:

• Do not include expenses which not related to the acquisition or creation of an object (for example, fines or penalties).
• Forget about indirect costs during the construction or creation of an object.

Accounting for the initial cost of fixed assets

In accounting, the initial cost of fixed assets as soon as the object is put into operation. This is recorded in accounting documents and used to calculate depreciation.

This is a basic amount that reflects all costs of purchasing, creating or commissioning a facility. Its correct definition allows:

• calculate depreciation;

• take into account costs for tax purposes;

• accurately reflect the status of assets in the financial statements.

First you need to determine what expenses are included in the cost of the property.

These could be:

• Purchase cost — for example, the price of equipment under the contract;
• Delivery and installation — transportation and installation costs;
• Customs duties — when imported from abroad;
• Preparatory work — costs of designing or testing an object.

Let’s consider how to account for the purchase of equipment. The company purchased the machine for 1 million rubles, delivery cost 50 thousand rubles, and installation cost another 30 thousand rubles. Total amount to be accounted for: 1.08 million rubles.

To account for the initial cost, it is important to have supporting documents:

• invoices,

• certificates of completed work,

• invoices and contracts.

If an organization built a warehouse on its own, it needs estimates for materials, orders for labor, and acceptance certificates for completed work. After determining the cost, the object is entered into accounting. This is usually done under account 01 “Fixed Assets”.

If the object is created within the company, the cost is formed from:

• Direct costs (materials, wages).

• Shares of indirect costs (rent, utilities).

Read also: Experts have calculated the cost of building a PC in 2024

Let’s look at an example.

The company built an office building for 3 million rubles, of which 2,500,000 rubles were materials and labor costs, and 500 thousand rubles were indirect costs. This amount is included in the accounting.

Important.

The initial carrying amount does not change after the facility is put into operation, except in cases of additional equipment, reconstruction or other improvements.

If an automatic control system is added to already installed equipment, the cost of its installation increases the cost of the facility.

How to calculate the initial cost of operating systems purchased or created by the organization itself?

If operating systems are created by an organization independently, their initial cost is based on the costs incurred during the creation process.

Main expenses:

1. Materials — cost of raw materials and components.
2. Remuneration — wages of employees involved in the creation of the facility.
3. Contractor services — if any work was performed by third parties.
4. Equipment and tools — the cost of their use for OS production.
5. Additional costs – for example, electricity or rental of production space.

The company built the warehouse itself. Costs for materials amounted to 2 million rubles, for wages of workers – 500 thousand rubles, and rental of equipment cost 2 thousand rubles. The initial book value of the warehouse will be 2.7 million rubles.

For purchased objects, it is important to include the purchase price and additional costs, and for those created on your own, it is important to take into account both direct and indirect costs.

When an organization receives fixed assets free of charge, their initial value is determined by the market value at the time of transfer.

What does market value include?

1. Average price of an object on the market — determined based on the prices of similar objects.
2. Registration costs — registration, delivery and other related costs.

The organization received a car free of charge.

• The market value of such a car is 800 thousand rubles.
• Transportation costs amounted to 20 thousand rubles.

Then the initial cost of the car will be 820 thousand rubles.

This is an opportunity to write off part of the cost of a fixed asset (FPE) at a time as expenses in the first year of its operation.

This mechanism is provided to simplify accounting and stimulate the renewal of fixed assets, which is especially important for organizations operating in conditions of intensive equipment operation.

If the company decides that it is necessary to use a depreciation bonus, then the fixed asset is recorded at its original cost and the bonus amount is deducted. It can only be applied to those objects that the company has created or acquired.

Let’s talk about the main features of the depreciation bonus.

Award amount:

• For most fixed assets, the premium is up to 10% of the original cost.

• For some objects belonging to depreciation groups 3-7 (for example, equipment, buildings), the amount can reach 30%.

When to use:

• Only when putting the fixed asset into operation.

• Used at the discretion of the organization, if provided for by the accounting policy.

Where not to use:

• For objects transferred under leasing agreements.

• For operating systems created within the framework of targeted financing.

Let’s say an organization purchased equipment for 1,000,000 rubles.

• Initial OS cost – 1 million rubles.
• Depreciation bonus (30%) – 300 thousand rubles.
• The remaining amount (700 thousand rubles) will be written off straight-line through depreciation.

Thus, an organization can immediately include 300 thousand rubles in expenses, which will reduce taxable profit in the current year.

Pros:

• Tax savings. Allows you to reduce income tax in the first year of using the OS.

• Acceleration of payback. Partial reimbursement of costs eases the financial burden.

• Easy accounting. The mechanism is convenient for quickly writing off part of the cost.

Cons:

• Reduced tax effect in the future. Depreciation charges in subsequent years will be less.

• Risks of adjustments. Errors in calculation or incorrect application of the premium may cause claims from the tax authorities.

What documents are needed?

• The act of putting the OS into operation.

• Calculation of bonus depreciation, fixed in the accounting policy.

• Supporting documents for the purchase or creation of an object.

Tips for use:

1. Analyze the economic benefits. For example, if an organization expects significant earnings growth in the future, it may be worth considering using a bonus.
2. Fix the mechanism in the accounting policy. This will help avoid questions from the tax authorities.
3. Check restrictions. Make sure that the object qualifies for the depreciation bonus.

The historical cost method allows you to take into account all costs incurred to purchase or create an operating system. It is important that all expenses are documented and correctly reflected in accounting.

Key aspects:

• For purchased OS The purchase price and additional costs are taken into account.
• For created OS – production costs.
• For gratuitously received — market value of the object.
• Residual original cost can only be recalculated in case of modernization or improvements.

Understanding the components of the initial cost of fixed assets and correct accounting of the initial cost of fixed assets will help you avoid mistakes and effectively manage the company’s assets.

Cover photo: Freepik