Tutorial: Business Academy Topic: Fixed assets – depreciation ( 2 nd part) Prepared by : Ing. Jana Šustrová Projekt Anglicky v odborných předmětech, CZ.1.07/1.3.09/ je spolufinancován Evropským sociálním fondem a státním rozpočtem České republiky.
They objectively reflect the actual rate of property depreciation Accounting Act sets companies to have the depreciation schedule in which calculation of depreciation will be determined Depreciation period is not specified, but it should not be less than 1 year Accounting depreciation is calculated to the nearest month for more accurate business results Accounting depreciation must be accounted to the latest balancing account
Accrued depreciation -Depreciation amounts are calculated according to the estimated serviceable and useful life of the asset -It is usually determined for a month Example: The company bought a copy machine on for CZK ,-, usable life was set for 3 years (36 months). Depreciation has started since Calculation: monthly depreciation: /36 = 4 000,-- accounting depreciation – year 2011: 3 x = ,--
Output depreciation -The calculation is based on the planned output – e.g. Mileage, number of manufactured products, planned capacity provided by the manufacturer Example: The company bought a passenger car for CZK ,-. Depreciation basis is estimated number of kilometres for its useful life that is CZK ,-. In the first year the car was driven km. Calculation: Depreciation for 1 km: / = CZK 4,- Accounting depreciation in the first year: x 4 = ,-
They are accurate to the month Depreciation period depends on whether the company has the fixed-term or unspecific- term assets. Fixed-time property: monthly depreciation = input price/negotiated period Unspecific-time property: monthly depreciation= input price/ periods according to the months
Audio visuals months Software, research & development...36 months Organization costs………………….…60 months Other intangible assets months Depreciation starts on the first day of the following month after the asset is put into use.
The company bought software on for CZK ,-. Calculate the depreciation for a year Calculation: The depreciation period of software by ITA is 36 months. Monthly depreciation: / 36 = 2 000,-- Depreciation for 2011:od 1. 5., i.e. 8 months = 8 x = ,--
Straight-line depreciation: Increased input price x rate for increased price Accelerated depreciation: a) In the year of increased input price 2 x increased residual price/coefficient for increased price b) in the following years 2 x residual price/ coefficient for increased p. (number of years of increased input price depreciation)
According to which law are tangible assets classified into depreciation groups? a) commercial code b) trade law c) income tax law d) accounting law Accumulated depreciation a) positive difference between input price of property and depreciation b)Small repairs c)Positive difference between input price and residual price of property d)Sum of deprecations for the period of use When using accounting depreciation of fixed assets is it possible to write it off earlier than when using tax depreciation? a) yes b) no c) yes, when accelerated tax depreciation
Accounting depreciation of fixed assets: a)They should agree with the actual depreciation of fixed assets. Rates are set by Income Tax Act b)They should agree with the actual depreciation of fixed assets. Rates are set by the company. c)They set a level of maximum depreciation that can be applied as tax deductible expenses. The company has bought a production line, purchase price is CZK ,-. Estimated number of products that should this production line produce during its service life is pieces. In this year it has been produced 4800 products. Calculate the amount of depreciation for this year.
Štohl, P. Učebnice účetnictví 2011 – 2. díl pro střední školy a pro veřejnost. Znojmo: NAKLADATELSTV Í ŠTOHL PAVEL ING. – VZDĚLÁVACÍ STŘEDISKO,2011. ISBN Švarcová J. a kol. Ekonomie -stručný přehled, teorie a praxe aktuálně a v souvislostech. Zlín: TOPPEX, s. r. o., ISBN