Accounting for repairs and improvements to own fixed assets
Fixed assets are permanent assets. During operation, fixed assets (OS) are somehow worn out, so they need to be repaired or improved. How to calculate such operations? We will talk about this in the opening article of today's issue.
The company plans to start a major renovation of the building (block roof, replace windows, repeat heating). The repairs will be carried out by the contractor and the company's own efforts. How to reflect this repair in accounting and tax accounting? Do I have to make a decision to withdraw a fixed asset from a business?
ACCOUNTING ACCOUNTING COSTS OF THE FIXED ASSET
TR management involves the implementation of minor works: in relation to the repair or partial replacement of individual parts of OS objects in order to maintain them in working order. Such repairs do not increase the benefits that were planned using a repaired item. Therefore, the costs for this are not included in the cost of the fixed asset (not capitalized) but are included in expense in the period (Dt 91, 92, 93, 94, depending on the scope). TR can be performed both independently and by the performer. Practically every company that has a building in its balance sheet faces the need for maintenance, maintenance and repair costs. In the consultation, we will examine how to properly evaluate these costs and reflect them in the company's accounting and taxation. We assure all our clients: high quality of service and trust in a positive result, understanding the specificity and individuality of each of your questions; optimal cost of services; complete security of personal and commercial information. If the capital repair increases the value of the fixed asset (hereinafter referred to as the OS), it will become clear if we will refer to Accounting Regulation 6/01, "Accounting of Assets", approved by Resolution no. 26n of the Ministry of Finance of the Russian Federation of 30 March 2001 and also the Tax Code of the Russian Federation. In our paper we will answer this question.