What is physical wear and tear? Depreciation of fixed production assets (OPF): types, characteristics

Ministry of Education and Science Russian Federation

Federal State Budgetary Educational Institution

higher professional education

"Altai State Technical University named after. I.I. Polzunov"

Institute of Intensive Education

Coursework in the discipline “Economics of an organization (enterprise)”

Topic: “Depreciation and amortization of fixed production assets of enterprises”

The work was completed by: I.A. Okulova

Student gr. Zr-M-21 signature, acting surname

I checked the work:

Teacher Art. Lecturer at the Department of MB L.A. Tolstopyatova

Zarinsk 2014

Plan

The concept of depreciation of fixed assets

1 Composition and classification of the organization’s fixed assets

2 Depreciation of fixed assets

Types of wear

Depreciation of fixed assets and calculation of depreciation charges

Depreciation methods

Analysis of the use of fixed assets in the housing and communal services of the village. Virgin

1 Characteristics of the organization

2 Depreciation of fixed assets in the housing and communal services of the village. Virgin

Conclusion

Bibliography

Introduction

Any production process is a process of transformation of objects of labor, carried out by living labor with the help of means, labor.

The totality of means and labor forms the main production assets, which are used in several production cycles, gradually wear out and transfer their value to manufactured products in parts throughout the entire service life, without losing their natural form. This feature of fixed assets makes it necessary to use them as efficiently as possible.

Fixed production assets, consisting of buildings, structures, machines, equipment and other means of labor that participate in the production process, are the most important basis for the activity of the enterprise. Without their presence, hardly anything could have happened.

Numerical growth and qualitative improvement of means and labor based on continuous scientific and technological progress are a decisive prerequisite for the steady growth of labor productivity. In conditions of rapid technological progress, technology is constantly being improved, new, more highly productive types of mechanisms and devices are being created to replace old technology.

The useful life (service life) of fixed assets in the production process is becoming increasingly important, both from the point of view of technical progress and from the point of view of a more correct, highly efficient use of those capital investments that are spent on the creation of new fixed assets.

The main production assets of enterprises undergo an economic cycle consisting of the following stages: wear and tear, depreciation, accumulation of funds for the complete restoration of fixed assets, their replacement through capital investments. All fixed assets are subject to physical and moral wear and tear, i.e. under the influence of various factors they lose their properties, become unusable and can no longer perform their functions. Physical wear and tear can be partially offset through repairs, renovations and upgrades.

Obsolescence is manifested in the fact that fixed assets are inferior in all their characteristics the latest designs. Therefore, from time to time there is a need to replace fixed assets, especially their active part.

Moreover, in the modern economy, the main factor determining the need for replacement is obsolescence.

The subject of the study is the main production assets.

The object of study is wear and depreciation.

The purpose of the study is depreciation and amortization of fixed production assets.

In connection with the goal, the following tasks are identified:

consider the composition of the organization’s fixed assets, their characteristics;

methods for assessing fixed assets;

depreciation of fixed assets;

depreciation of fixed assets;

methods of calculating depreciation;

analysis of the use of fixed assets in the organization of housing and communal services of the village. Virgin

. The concept of depreciation of fixed assets

.1 Composition and classification of the organization’s fixed assets

The material base of the enterprise is formed by means of labor and objects of labor, which are combined into means of production. Instruments of labor are accounted for in the form of fixed assets.

Fixed production assets are that part of the means of production that is fully involved in a number of production cycles, while retaining its completely natural form, has value and gradually transfers it to the newly created product.

Fixed assets are objects with a useful life of more than 12 months, regardless of their cost.

For accounting, evaluation and analysis, fixed assets are classified according to a number of characteristics:

According to their functional purpose, fixed assets are divided into main production and main non-production. Production fixed assets include funds that are directly involved in the production process (machines, equipment, machine tools, etc.) or create conditions for the production process (industrial buildings, pipelines, etc.).

Non-productive fixed assets are objects of household and cultural purposes. These include kindergartens, medical institutions, holiday camps, residential and communal facilities, which are on the balance sheet of the enterprise. They are not used in production; their purpose is to serve the employees of the enterprise.

Based on ownership, fixed assets are divided into owned and leased.

Depending on the sectors of the national economy, they are divided into the main production assets of industry, agriculture and forestry, construction, transport, trade, etc.

In accordance with the All-Russian Classifier of Fixed Assets, based on the principle of material and natural composition, fixed assets are divided into the following groups (Table 1).

Table 1 Classification of fixed assets

Classification of fixed assets is necessary to determine the role of individual groups in the production process, to determine the optimal directions of capital investments in order to increase the efficiency of their use. Since their classification for calculating depreciation charges is developed on the basis of the type classification of fixed assets, it is also necessary for planning the depreciation fund and analyzing the dynamics of changes in depreciation rates.

In the above classification, some of the elements of fixed assets (machinery and equipment) are directly involved in the production process and therefore belong to the active part of fixed assets; others (industrial buildings and structures) ensure the normal functioning of the production process and are a passive part of fixed assets.

This division into active and passive parts is largely arbitrary. In a number of industries, due to technological features, the active part of fixed assets also includes certain types of structures, such as blast furnaces in metallurgy.

The ratio of individual groups of fixed assets to their total value constitutes the type structure of fixed assets, which depends on the technical and economic characteristics of industries.

The type structure of fixed assets is different in industries. For example, the share of buildings in the total cost of fixed assets is greatest in the food industry (44%), structures - in the fuel industry (17%), transmission devices - in the electric power industry (32%), machinery and equipment - at enterprises of the mechanical engineering complex (45% and above).

The type structure of fixed assets of Russian industry is shown in Table. 2.

table 2

Type structure of fixed assets of Russian industry

The composition and structure of fixed assets depend on the specifics of the industry’s specialization, the type of final product, the level of scientific and technical progress, etc.

The age structure of OPF characterizes their distribution by age groups (up to 5 years; from 5 to 10 years; from 10 to 15 years; from 15 to 20 years; over 20 years). The average age of equipment is calculated as a weighted average.

The main task at the enterprise should be to prevent excessive aging of the OPF.

Based on ownership, fixed assets are divided into: own and leased.

Based on use - those in operation (active), in reconstruction and technical re-equipment, in reserve (stock) and in conservation.

This division allows you to correctly calculate the amount of depreciation.

For objects in operation, depreciation is accrued for full restoration and, if necessary, a repair fund is created; for reserve objects, the amount for full restoration is accrued, and for objects in conservation, depreciation is not accrued at all.

.2 Depreciation of fixed assets

Depreciation characterizes the aging process of existing fixed assets, both physically and economically. Depreciation of fixed assets is determined and accounted for buildings and structures, transmission devices, machinery and equipment, vehicles, production and household equipment, draft animals, perennial plantings that have reached operational age, and intangible assets.

Depreciation of fixed assets is determined for a full calendar year (regardless of what month of the reporting year they were acquired or constructed) in accordance with established standards. Depreciation is not charged in excess of 100% of the cost of fixed assets. Accrued depreciation in the amount of 100% of the cost of objects (items) that are suitable for further use cannot serve as a basis for writing them off due to wear and tear.

Means of labor are repeatedly involved in production processes.

However, their operating time has certain limits: sooner or later they wear out, lose their properties and are removed from the production process.

Depreciation of fixed assets is the partial or complete loss of fixed assets of consumer properties and value, both during operation and during their inactivity.

A distinction is made between physical (material) and obsolescence of fixed assets.

Physical wear and tear means the gradual loss of the tools of labor of their consumer properties, i.e. quantitative and qualitative characteristics. Physical wear and tear is most common for equipment and transport; Much later, physical wear and tear of buildings and structures occurs.

Physical wear and tear occurs for two reasons: due to machine operation and inactivity, and also due to natural disasters. Physical wear and tear can be partially offset through repairs, renovations and upgrades. Therefore, in order to reduce physical wear and tear, it is necessary to reduce the share of inactive equipment and reduce the time required to replace equipment.

Obsolescence of fixed assets consists of a decrease in their value under the influence of scientific and technological progress, i.e. PFs that can be used are already economically ineffective. There are obsolescence of the first and second types.

Obsolescence of the first type is not related to the service life of the equipment, nor to the degree of its physical wear and tear. Depreciation is associated with the pace of technical progress, leading to a decrease in the cost of manufacturing products due to an increase in labor productivity and the industry producing new fixed assets, i.e. The production of previously produced machines is carried out with less labor and they become cheaper.

Obsolescence of the second type is associated with the emergence of new, more highly productive equipment produced at the same costs, which leads to a decrease in the relative usefulness of obsolete fixed assets.

Depreciation can be complete or partial.

When completely worn out, fixed assets are subject to liquidation and replacement with new fixed assets.

Partial wear and tear - fixed assets are subject to restoration through repairs.

The problem of obsolescence can be solved by implementing a number of economic and organizational measures. First of all, machines and mechanisms must be used at maximum capacity in order to accelerate the return of their beneficial effect before the onset of aging.

That is why it is so important to reduce the construction time of new facilities and the service life of machinery and equipment, and to ensure that manufactured machines are not delayed in warehouses or in installation.

. Types of wear

There are two types of wear and tear - physical and moral.

To determine the physical depreciation of fixed assets, two calculation methods are used:

by volume of work is based on the comparability of actual and standard service lives or volumes of work. The coefficient of physical wear and tear can be determined only for those objects that have a certain productivity (machines, machine tools). This coefficient can be determined by the formula:

where is the coefficient of physical wear;

The number of years actually worked by the machine;

Average volume of products actually produced per year, in kind. units;

Standard service life, years;

Annual production capacity (or standard productivity) of equipment, natural. units

The service life is based on data on the technical condition of labor equipment installed during the inspection process.

The physical depreciation coefficient can be applied to all types of fixed assets. Then the coefficient of physical wear is determined by the formula:

Obsolescence is manifested in the loss of economic efficiency and expediency of using fixed assets before the expiration of complete physical wear and tear.

Obsolescence of the first type is a decrease in the cost of machinery or equipment due to the reduction in the cost of their reproduction in modern conditions. In this case, the relative amount of obsolescence is calculated using the formula:

(3)

where is the obsolescence coefficient; - initial cost of fixed assets, rub.;

Accordingly, the replacement cost of fixed assets, rub.

Obsolescence of the second type is due to the creation and introduction into production of more productive and economical types of machinery and equipment. Obsolescence of the second type can be partial or complete, and also have a hidden form. It is determined by the formula:

(4)

where and is the replacement cost of outdated and modern machines, rubles; and - productivity (or production capacity) of outdated and modern machines, respectively, in nature. units

Partial obsolescence is a partial loss of use value and value of the machine. Its constantly increasing size may be the reason for using this machine in other operations, where it will still be quite effective.

Complete obsolescence is a complete depreciation of a machine, making its further use unprofitable.

The hidden form of obsolescence implies the threat of depreciation of the machine due to the fact that the task for the development of new, more productive and economical equipment has been approved.

Accounting for fixed assets is determined not only by the need to know what fixed assets and in what volume the enterprise has, but also by the requirements of production economics. This is due to the fact that the share of fixed assets in the total amount of funds at the disposal of the enterprise reaches 70% or more.

Consequently, the development (state) of its economy depends on how they are used.

. Depreciation of fixed assets and calculation of depreciation charges th

A sinking fund is a cash fund in which depreciation charges (depreciation) are accumulated after the sale of products. Its value depends on the cost of fixed assets, their composition, structure and depreciation rates.

Depreciation of fixed assets and intangible assets means gradual reimbursement of the costs of their acquisition, production or improvement within the established depreciation rates. Depreciation charges reduce the adjusted gross income of the enterprise and cannot be withdrawn in whole or in part to budgets or other centralized funds without the consent of the enterprise.

For non-productive fixed assets, depreciation is also charged according to established depreciation rates, but it does not reduce the adjusted gross income of the enterprise. The following expenses are subject to depreciation:

) acquisition of fixed assets and intangible assets for own production use;

) costs of purchasing breeding stock;

) acquisition, planting and cultivation of perennial plantings before fruiting begins;

) independent production of fixed assets for one’s own production needs, including the cost of paying wages to employees who were engaged in the production of such fixed assets;

) carrying out all types of repairs, reconstruction, modernization and other types of improvement of fixed assets;

) improving the quality of land not related to construction.

The following expenses are not subject to depreciation and are fully included in the gross expenses of the enterprise:

) acquisition and fattening of productive livestock;

) growing perennial fruit-bearing plants;

) acquisition of fixed assets or intangible assets for the purpose of their further sale to other persons or their use as components (components) of other fixed assets intended for further sale to other persons;

The following are not subject to depreciation and are made at the expense of appropriate sources of financing:

Budget expenditures for the construction and maintenance of improvement structures and residential buildings, acquisition and storage of library and archival funds;

Budget expenditures for the construction and maintenance of public roads;

Expenses for the acquisition, repair, reconstruction, modernization and other improvements of non-productive assets.

The term “non-productive assets” should be understood as capital assets that are not used in the economic activities of the enterprise. Such non-productive funds include:

)capital assets (or their structural components) falling within the definition of group 1 fixed assets, including leased assets.

) capital assets that fall within the definition of groups 2 and 3 of fixed assets, which are an integral part.

Located or used to support the activities of non-productive assets falling under the definition of a group of fixed assets or withdrawn from the place of business of an enterprise and transferred for free use by an enterprise that does not carry out economic activities related to making a profit.

However, depreciation on non-productive assets can be carried out at the expense of the enterprise’s own funds.

Thus, depreciation (depreciation charges) is a part of the initial (replacement) cost of fixed assets and intangible assets transferred to finished products, which moves independently and accumulates in the depreciation fund.

The economic content of depreciation is that the funds of the depreciation fund are a source of compensation for fixed assets retired due to physical and moral wear and tear, that is, reproduction of fixed assets occurs from this fund.

In addition, since depreciation charges accumulate gradually, and are spent on the restoration of fixed assets at a time, only after the expiration of their service life, accrued depreciation until the replacement of retired fixed assets is temporarily free and serves as an additional source of expanded reproduction.

Technical progress creates additional opportunities for expanded reproduction through the depreciation fund, since the same amount of money is embodied in more advanced means of labor.

Therefore, with an increase in the volume of fixed assets and the acceleration of technical progress, the role of depreciation as a source of financing for expanded reproduction increases.

In addition, depreciation is an important lever of the state’s economic policy, stimulating technical progress, increasing the load on fixed assets, and saving repair resources.

The depreciation rate is the main lever of the state's depreciation policy. Through the norm, the rate of turnover of fixed assets is regulated and the process of their reproduction is intensified.

In each period of economic development, the level of standards cannot be the same.

Depreciation rate represents the ratio of the annual amount of depreciation to the original cost of the instrument of labor, expressed as a percentage.

Service life or useful life is the period during which the use of fixed assets generates income and serves the goals of the organization.

The level of depreciation rate is determined by the accepted standard service life of various types of fixed assets. The choice of its value is determined by a number of factors: the pace and direction of technical progress, the capabilities of the production apparatus to produce new types of equipment, the relationship between needs and resources in various types of fixed assets, etc.

Calculations of depreciation periods for specific types of fixed assets take into account many factors that reflect their specific qualities and purpose. Thus, depreciation periods for many types of structures and equipment in the mining industry are determined by the period of depletion of raw materials, and for equipment operating in an aggressive environment, by the period of their physical wear, etc.

In the former USSR and in the Russian Federation, depreciation standards were revised 8 times (except for local clarifications and revisions): in 1923, 1930, 1938, 1949, 1951, 1955, 1963, 1975 and 1997.

During the years of revolution and civil war, the process of reproduction of fixed assets was interrupted, the depreciation fund disappeared.

The practice of calculating depreciation was restored during the NEP years. But depreciation standards were not established; the accrual was made arbitrarily. In 1923, the Supreme Economic Council approved the first depreciation rates, differentiated by three groups of fixed assets: for stone buildings and capital structures - 3.5%, for wooden buildings, machinery and equipment - 5-10%, for vehicles, inventory and tools - 10-15%. The standards were set as a percentage of the original cost.

In 1930, new depreciation standards were approved. Their main feature was that they were differentiated by specific types of fixed assets, in accordance with the expanded classification of fixed assets.

The standards took into account the shift and loading of equipment. The differentiated standards of 1930 were applied until 1963, although they to a small extent reflected obsolescence. In 1928, industry average depreciation standards were introduced. They operated along with the differentiated norms of 1930 and served as a limit determining the volume of the depreciation fund for the industry and each enterprise.

The distribution of the accrued fund for inclusion in the cost of each type of product was carried out according to the standards established in 1930. The second most important feature of the 1938 standards is the allocation of depreciation rates allocated for major repairs. A trust fund of financial resources for capital repairs was created, which was due to the need to ensure the proper technical condition of the funds, labor and their safety.

Financing capital repairs at cost, carried out before 1938, did not provide a solution to these problems.

In 1949, 1951 and 1955 industry average standards were revised with virtually no change in the overall level of standards, which amounted to 5.0 -5.5% of the value of fixed assets.

The standards for individual industries were clarified, as well as the share of capital repairs. During this period, a gap formed and gradually deepened between the differentiated standards in force in 1930 and the approved industry average standards, which negatively affected the reproduction of fixed assets and the entire economy.

An important milestone in depreciation policy was the development and introduction of new standards in January 1963.

The share of capital repairs included the costs of medium-sized repairs and modernization of facilities and labor. Thus, the norms of 1963 significantly accelerated the turnover of fixed assets, increased the renovation part of the depreciation fund, limited the scale of capital repairs, and optimized the entire reproduction process of fixed assets.

In 1975, depreciation standards were clarified, the need for revision of which was caused by the revaluation of fixed assets carried out on January 1, 1972. When clarifying the 1975 standards, the basic principles and methodology for developing the 1963 standards were retained.

Distinctive points of these standards: a more expanded classification, an increase in the number of standards (1780), a decrease in the share of capital repairs, and an increase in the share of renovation.

In 1991, new depreciation standards were introduced, which are in force in the Russian Federation to this day. The main feature of these standards is the elimination of the share of depreciation allocated for major repairs.

Since 1991, depreciation has been charged only for the complete restoration of fixed assets. Renovation standards have been significantly increased, a significant part of the standards have been unified, especially for metalworking equipment.

Since 01/01/1997, new rules for the depreciation procedure have been established, according to which all property subject to depreciation is combined into the categories presented in the following table 3:

Table 3 - Depreciation rates, percentage

The economic role of depreciation is the actual replacement of existing fixed assets. Thus, the purpose of economic depreciation should be to determine the actual costs of the enterprise associated with the full reproduction of the means of labor, and, consequently, the cost of products (services).

Depreciation charges in this case reflect the real depreciation of fixed capital in the production process and are attributed to the costs of activity of business entities.

The economic depreciation produced should be used within the framework of management accounting, and enterprise managers can choose the norms and rules of accrual independently.

In economic depreciation, the duration of the depreciation period should be equal to the actual service life before the write-off or disposal of a specific instrument of labor at each enterprise.

This period in the Accounting Regulations (standard) “Fixed Assets” dated May 18, 2000 is called the useful life (operation) period.

The actual service life before the write-off of a particular piece of labor may be economically rational, which is most beneficial for the enterprise, or for various reasons it may differ from it in any direction.

The tax role of depreciation is to financially compensate fixed capital by reducing taxable profit by the amount of depreciation deductions and obtaining a tax discount.

Effective use of depreciation creates financial incentives for the development of scientific and technological progress. These include:

) accelerated depreciation mechanism, which means, as a rule, doubling the depreciation rate. Consequently, the payback period is halved, the retirement of old fixed assets is accelerated, and this means that financial investments in new ones are stimulated.

Even if fixed assets that have paid for themselves thanks to accelerated depreciation have not physically worn out, their disposal will make it possible to introduce into production more efficient equipment that is newly emerging in the context of the development of scientific and technological progress.

)Income tax benefits are associated with the mandatory and full use of depreciation for renovation only to finance capital investments (industrial and housing).

Only in this case, profit going to the same purpose is exempt from income tax.

)Adjustment of the cost of fixed assets and depreciation rates, legally regulated by the state, in addition to taking into account inflation and its smoothing, as a measure of financial impact, predetermines a unified technical policy and preferences in the development of certain industries and productions.

) A special regime for the calculation and use of depreciation for certain commercial structures of small and medium-sized businesses creates additional incentives for updating equipment at these enterprises.

. Depreciation methods

fixed assets depreciation and amortization

The following depreciation methods are used in business practice in various countries:

) straight (uniform);

) degressive;

) progressive;

) production.

Straight-line depreciation(depreciation in equal amounts per year): the costs of acquiring or producing an object are written off evenly, based on the expected life of the fixed asset.

In this case, the rate and amount of depreciation charges remain unchanged during the depreciation period.

Degressive depreciation(depreciation in decreasing amounts per year): In the first years of the asset's use, higher amounts are written off as expenses than in subsequent years. The following forms of degressive depreciation are distinguished: decreasing residual value (geometrically degressive method), arithmetically degressive (cumulative) method, diminishing balance methods, accelerated reduction of residual value and depreciation based on decreasing step rates.

Under the geometrically degressive method, depreciation is calculated by applying a fixed percentage depreciation rate to the last book value of the item (residual value depreciation).

In this case, depreciation charges are gradually reduced, and the value of fixed assets is never completely written off. Deductions are always less than the residual value (even the cost of scrap metal).

According to the arithmetically degressive (cumulative) method, the annual amount of depreciation is determined as the product of the depreciable cost and the cumulative coefficient.

The cumulative ratio is the ratio of the number of years remaining until the end of the expected life of a fixed asset to the sum of the number of years of its useful use.

This method is characterized by the fact that the amount of annual deductions decreases and by the end of the period of use the cost is completely written off.

Declining Balance Method consists in the fact that a fixed depreciation rate is applied, and the depreciation calculation base is calculated by groups to the book value, however, the book value is not considered the full original cost at the beginning of the reporting period, but the residual value. In particular, elements of this method are currently used in Ukraine.

According to the accelerated depreciation method, the annual depreciation rate is calculated based on the useful life of the asset and is doubled. The annual depreciation amount is determined as the product of the residual value of the object at the beginning of the reporting year and the annual depreciation rate.

Along with the above methods, degressive depreciation can include a method based on decreasing step rates.

This method assumes fixed depreciation rates, progressively decreasing at certain intervals as the useful life of the object increases.

Progressive depreciation (depreciation in increasing amounts over the year): at the beginning of an asset's use, a lesser amount is written off as an expense than at the end of its useful life. Depreciation is calculated by analogy with degressive depreciation, but with an increase in the regular amount of depreciation.

Production depreciation (depreciation depending on the output and degree of operation of the facility): in contrast to the considered depreciation methods associated with the time factor, when applying this method for the initial value, a depreciation quota is calculated, depending on productivity.

Write-off based on this method comes closest to the actual technical decrease in the value of the object. The use of this method is economically justified in the case of significant fluctuations in production, as well as in the case of the possibility of determining the volume of production for the year.

The methods proposed above can be divided into non-accelerated And accelerated.

Non-accelerated depreciation should be considered such a system of its calculation, which, during the entire economically rational service life of assets and labor, will ensure that the accumulated amount of depreciation charges coincides with the actual rate of loss of consumer properties and value of assets.

From this we can conclude that the duration of the depreciation period when using non-accelerated depreciation should be equal to the economically rational service life of assets and labor.

In addition, in conditions of high inflation rates, timely and complete indexation of fixed assets should be ensured.

Taking into account these features, non-accelerated depreciation includes straight-line and production methods of its calculation.

The straight-line method is focused on uniform physical and moral wear and tear of fixed assets. This assumption is quite legitimate in relation to physical wear and tear. However, this is not the case with obsolescence.

Obsolescence of fixed assets in most cases occurs at an accelerated, rather than uniform pace, as provided for in depreciation rates. Therefore, an entrepreneur must have depreciation allowances that provide him with the opportunity to replace existing fixed assets in the event of accelerated obsolescence.

TO shortcomings Straight-line depreciation should include:

) a obviously fixed, constant amount of the depreciation period;

) insufficient incentive impact on increasing the efficiency of use of fixed capital;

) the possibility of under-depreciation due to insufficient consideration of the impact of obsolescence;

) insufficient consideration of the conditions for intra-shift use of fixed capital.

Accelerated depreciation should be considered such a system of its calculation and procedure for the revaluation of assets and labor, in which during the first years or the entire depreciation period the accelerated growth of the accumulated amount of depreciation charges is ensured in comparison with the actual rate of loss of consumer properties and value of assets. With its help, the harshness of non-accelerated depreciation methods is softened.

Provided that the depreciation period is equal to the economically rational service life of assets and labor, degressive depreciation methods can also be classified as non-accelerated methods. If the enterprise establishes an underestimated useful life of funds and labor, all considered depreciation methods become accelerated.

The voluntary nature of choosing an accelerated depreciation mode has its own meaning. Increased depreciation rates are only valid for successfully operating enterprises.

The success of business in this case has clearly defined guidelines: the cost of products produced by the enterprise is significantly lower than the price dictated by the market.

In other words, for the enterprise there is a reserve for increasing costs (due to an increase in depreciation charges) without increasing the selling (wholesale) price of product sales.

The situation changes if the cost of production is critically close to the price level on the market. Any increase in cost (in this case due to depreciation) may force an increase in the selling price, which, as a rule, leads to a drop in sales volume.

In such a situation, enterprises are not interested in increasing depreciation rates. Moreover, there are cases when enterprises took measures to reduce normal depreciation rates. Such situations arose when industrial enterprises lost most of their order portfolio (were loaded at 20-40% capacity).

Some enterprises approached the ministry with a request to mothball part of their capacities. In economic terms, this meant the suspension of the depreciation regime for fixed assets. This mode is called deferred depreciation.

Another case where it is unprofitable to increase depreciation rates is the situation when an enterprise adheres to a strategy of lower prices (compared to competitors).

The advantages of accelerated depreciation can be considered in two aspects:

) faster reproduction of fixed assets;

) reducing the tax burden for the enterprise.

In a market economy, it is necessary to constantly monitor the competitiveness of products. Therefore, the manufacturer must always be prepared to quickly switch to more advanced or cost-effective technology.

The manufacturer covers part of the need for capital investments for this through depreciation savings, which, with the accelerated depreciation method, make it possible to provide more than 50% of the cost of the equipment being replaced only in the first three years of operation of fixed capital.

Accelerated depreciation allows you to more fully take into account obsolescence and reduce the possibility of over-depreciation.

At the same time, the policy of accelerated depreciation is an important tool for intensifying the investment activity of enterprises and allows stimulating the renewal of products and production equipment.

. Analysis of the use of fixed assets in the housing and communal services of the village. Virgin

.1 Characteristics of the organization

Organization of housing and communal services management of the village. Tselinny in its activities is guided by the Constitution of the Russian Federation, federal constitutional laws, federal laws and other regulatory legal acts of the Russian Federation, the budget code, and the city charter.

The organization is a legal entity, operates on the basis of estimates of income and expenses, has personal accounts with the treasury authorities, and an independent balance sheet. The organization is a non-profit organization that does not have profit as its main activity and does not distribute the profits received among participants.

Functions of the organization: independently carries out financial and economic activities; requests and receives, in accordance with the established procedure, from authorities and local self-government bodies the information necessary to perform the functions assigned to the Department. To purchase and rent fixed and working capital for business activities at the expense of funds provided for in the budget of income and expenses.

Thus, the main task of the housing and communal services is: maintenance and repair of housing and communal services, performing the functions of a manager of local budget funds, monitoring the use of budget funds, logistics for maintenance and repair of housing and communal services.

.2 Depreciation of fixed assets in the housing and communal services of the village. Virgin

To perform the statutory functions of a budgetary organization, fixed assets (equipment of labor) are required. They repeatedly participate in the production process, transferring their value in parts to the created product, without changing their material and natural form.

Objects of fixed assets in budget accounting include material objects used in the course of the activities of an institution when performing work or providing services or for the management needs of the institution, regardless of the cost of objects of fixed assets with a useful life of more than 12 months. Fixed assets, in particular, include residential and non-residential premises, structures, machinery and equipment, vehicles, industrial and household equipment, and other fixed assets.

To be reflected in accounting, fixed assets are subject to valuation at initial, replacement and residual values. The unit of budget accounting of fixed assets is an inventory object. An inventory object of fixed assets is an object with all fixtures and accessories, or a separate structurally isolated object, intended to perform certain independent functions, or a separate complex of structurally articulated objects, representing a single whole, and intended to perform a specific job.

Housing and communal services of the village Tselinny was created in January 2009. and did not yet have fixed assets on its balance sheet. During the year, the organization periodically replenished its material base. These are mainly computers, furniture, because... it was necessary to create all conditions for the normal functioning of the organization. Fixed assets were also transferred from other budgetary organizations, which were also taken into account in the organization’s assets.

Acceptance and transfer of objects between organizations for inclusion in fixed assets for the recipient organization or disposal of it (them) from fixed assets for the donating organization is formalized by general documents in Form N OS-1 (act of acceptance and transfer of fixed assets), which approved by the heads of the recipient organization and the donating organization and drawn up in at least two copies.

The act is also accompanied by technical documentation related to this object. The initial cost of fixed assets received by an institution for use is recognized as their current market value as of the date of acceptance for accounting.

Our organization has rules for calculating depreciation:

depreciation is not charged for fixed assets worth up to 3,000 rubles inclusive;

for fixed assets worth from 3,000 rubles to 20,000 rubles inclusive, depreciation is accrued in the amount of 100% of the book value when the object is put into operation;

For fixed assets worth more than 20,000 rubles, depreciation is accrued in accordance with the norms calculated in accordance with the established procedure.

Thus, for a fixed asset worth, for example, 5,000 rubles. depreciation must be charged once, and at a cost of 25,000 rubles. - monthly throughout the useful life, distributing the annual depreciation amount by month.

The depreciation method used in the organization is linear, i.e. depreciation charges are calculated at the same rate based on the original cost of fixed assets.

In March 2009, a computer was purchased (complete) worth 25,000 rubles. In accordance with the Instructions for Budget Accounting, depreciation on property worth over 20,000 rubles. is accrued monthly from the 1st day of the month following the month the property was accepted for accounting. Therefore, depreciation was calculated from April 1. According to the classification, the computer belongs to the second depreciation group, and its useful life is from 2 to 3 years inclusive, i.e. The maximum period was 3 years.

The annual depreciation rate is: 1/3 year * 100% = 33.33%.

The annual depreciation amount will be: 25,000 * 33.33% = 8,332.5 rubles.

Every month we must charge depreciation in the amount of 1/12 of the annual amount, i.e. 8,332.5/12 months = 694.38 rub.

In modern society, without information technology, it is impossible to establish effective operation of the management structure, increase the speed of processing and decision-making, and reduce the likelihood of management errors. New business conditions require the introduction of modern computer technology and processing of accounting and financial information.

To do this, you only need to enter the initial cost of the object, the name of the object, the date of commissioning, quantity, determine OKOF and the depreciation method, the rest is done and calculated by the computer itself.

As a result, it turns out that the amount of depreciation for ten months was 6943.80 rubles. Thus, depreciation will accrue for another 26 months and after the end date in March 2012, the entire cost of the computer will be fully repaid. When transferring free of charge, fixed assets are transferred at their book value.

The receiving party also receives the amount of depreciation accrued at the time of transfer. Depreciation of most fixed assets is equal to 100% for such groups of fixed assets as machinery and equipment, production and business equipment.

For these groups of fixed assets, the residual value is zero, therefore, they can be written off as they wear out, while the fixed assets continue to be in operation. Depreciation accrual stops on the 1st day of the month following the month in which the cost of the object was completely written off.

Housing and communal services, how non-profit organization, annually provides a statistical report “Information on the availability and movement of fixed assets” (form No. 11 (short)). In the process of analysis, the composition, structure and dynamics of fixed production assets are established. An increase in fixed assets can occur both due to an increase in their quantity, and due to an increase in their value as a result of revaluation.

According to the data obtained, it follows that the receipt of fixed assets through the acquisition of used OFs amounted to a greater value of 69,657 thousand rubles than simply acquired ones, of which buildings worth 68,190 thousand rubles were purchased.

Conclusion

The course work examined issues related to depreciation and depreciation. During the course work, the economic essence of depreciation was revealed. Various accrual methods are described, such as: uniform (linear) method; accelerated (non-linear) depreciation method; cumulative method (“sum of numbers method”); reducing balance method.

I see the best method for calculating accelerated depreciation, because... it allows you to quickly restore the funds spent on the acquisition of fixed assets and acquire new, more modern ones. This fact is especially important when scientific and technical progress is being introduced into our lives especially quickly, bringing new equipment and highly efficient technologies.

As for wear and tear, it can be physical and moral. Depreciation is offset by depreciation charges. Any enterprise must monthly deduct part of the funds received from the sale of finished products to the depreciation fund.

Fixed production assets make up a significant part of the country's wealth. The financial success of any enterprise can be achieved subject to the good technical condition of its production base, timely technical re-equipment of production and renewal of fixed assets. If we take Western countries, for example, their fixed assets are renewed every 5-10 years, due to this, manufacturing companies and factories increase production volumes and exports.

In our country, everything is different, many factories are idle and only some are functioning, because... Basically, all the equipment is outdated or has not been used for a long time, which is why our productivity is much lower than that of Western countries. More complete and rational use of fixed assets helps to improve all its technical and economic indicators, increase labor productivity, and increase production output.

For successful work For any enterprise, the renewal and efficiency of the equipment and technology used must be of decisive importance. Only constant updating of fixed production assets will allow enterprises to produce competitive products, satisfy demand, which is rapidly changing, and adapt to the conditions of market competition.

To carry out successful production activities, enterprises need to look for possible sources of financing to update production assets.

The tasks of the budgetary organization for accounting of fixed assets are control over their availability and safety from the moment of acquisition to the moment of disposal at the places of their operation and for financially responsible persons; correct and timely calculation of depreciation; control over the correct and effective use of funds for reconstruction, modernization and repair of fixed assets; obtaining data for the preparation of statistical and accounting reports on the availability and movement of fixed assets.

In modern conditions, depreciation charges are the main source of financing capital investments in developed countries.

Therefore, the state often allows companies accelerated depreciation, which allows, based on high depreciation rates, to write off the value of fixed assets quickly, over several years.

Typically, accelerated depreciation is allowed for the active portion of fixed assets. However, this may result not only in the rapid renewal of fixed capital, but also in an increase in that part of production costs that falls on depreciation charges.

Having analyzed the results of calculating depreciation charges using various methods, one can come to quite definite conclusions.

Accelerated depreciation differs from other methods by inflated depreciation rates.

It is obvious that underestimated rates of depreciation deductions slow down the renewal of funds and labor and slow down technical progress, while overestimated rates, on the contrary, lead to accelerated replacement of equipment.

Those. It is advisable to use accelerated depreciation of the active part of fixed assets if there is a need for structural restructuring of the organization's fixed assets and their modernization.

It can be said that the purpose of this policy is to stimulate investment.

However, it should be remembered that overestimation of depreciation charges is equivalent to an increase in costs in the short term and a decrease in the profitability of the enterprise. Therefore, in practice, the linear depreciation method is often used.

The proportional method, in turn, can be a compromise solution when choosing between linear and accelerated methods.

In general, the socio-economic progress of society largely depends on the depreciation policy pursued in the country.

To carry out successful production activities, enterprises need to look for possible sources of financing to update production assets.

Bibliography

1. Current problems of modern management and economics: Interuniversity. Sat. scientific tr. /Ed. S.D. Ilyenkova. - M.: INION RAM, 2008. - 164 p.

Accounting: Textbook. - 2nd ed., revised. And additional - M.: INFRA-M, 2000.

Financial accounting: Textbook / E.V. Akchurina, L.P. Solodko. - M.: Publishing house "Exam", 2004.

Civil Code of the Russian Federation. Part 1.2. - M., 2010.

Makarenko M.V., Makhalina O.M. Production management: Textbook for universities. - M.: PRIOR Publishing House, 2007.

Fixed means of production are a necessary component of the activities of any enterprise. The production performance of the organization depends on the condition of fixed assets and the level of their productivity. To analyze the condition of fixed assets, the depreciation coefficient is used. Today we will talk in the article about what the depreciation rate of fixed assets means, how to calculate it, what standards are established for it, and we will also tell you what analytical data can be obtained based on the depreciation rate of fixed assets.

General information on fixed assets

In the process of conducting business, all business entities use fixed assets (fixed assets). The number of fixed assets and their cost depends on the specifics of the enterprise, production volume, field of activity, etc. Read also the article: → “”. Fixed assets include not only equipment that is directly involved in the production process, but also:

• buildings, premises housing production workshops, offices, retail outlets, etc., that is, real estate used for the production and sale of goods, work and services;
• transport and other movable property that is used for production purposes;
• furniture, computer equipment and other property necessary to support the production process.

Fixed assets recorded on the balance sheet of an enterprise are subject to depreciation. As a result of monthly deductions, part of the cost of the equipment is written off as depreciation, so the balance sheet reflects the residual (real) value of the property based on the period of its use.

What is wear coefficient and what does it show?

In order to determine the degree of depreciation of production assets, a coefficient is used, which is defined as the ratio of the amount of accrued depreciation to the original cost of the property. Read also the article: → “”. The wear coefficient can be determined in terms of:

• physical wear and tear of fixed assets;
• moral condition of production equipment;
• correspondence of the value of the property to the market price.

The depreciation coefficient shows the degree of depreciation of fixed assets; the value of the indicator demonstrates how depreciated the fixed assets of a particular group and for the enterprise as a whole are. In other words, the depreciation rate gives an idea of ​​the state of fixed assets and determines the volume of worn-out equipment in the total number of fixed assets

Based on the wear rate indicator, it is possible to analyze the state of fixed assets and make a decision regarding the need to replace production equipment or increase its quantity.

How to calculate OS wear rate

To calculate the depreciation rate of fixed assets, you will need two indicators: the original cost of the property and the amount of accrued depreciation. The formula for calculating the coefficient looks like this:

CoefficientIzn = Depreciation / FirstSt * 100%,

• where Depreciation is the amount of depreciation accrued for the entire period of use of the equipment;
• FirstSt – the initial cost of the property according to accounting data.

Please note that when calculating the coefficient, the initial cost of the property is used, taking into account the improvements and modernization carried out, if any.

Example No. 1. JSC Steel Prokat has 13 machines on its balance sheet, the initial cost of which as of 02/01/17 is 10,461,360 rubles. (RUB 804,720 each). In March 2017, 2 machines out of 13 were modernized, as a result of which the cost of 2 units increased by 22,302 rubles. and amounted to 827.022 rubles. every.

The amount of depreciation accrued on the production equipment of Steel Prokata as of 04/01/17 amounted to 4,003,540 rubles. The accountant at Stal Prokata calculated the equipment wear rate as of 04/01/17:

• The initial cost of the property as of 04/01/17, taking into account the modernization carried out:

RUR 804,720 * 11 units + 827.022 rub. * 2 units = 10,505,964 rub.

• Wear rate as of 04/01/17:

4,003,540 rub. / 10,505,964 rub. * 100% = 38%.

Standard wear rate indicator

Legislative acts do not provide a standard value for the wear coefficient. Each enterprise determines the standard indicator individually, its value is fixed in the provisions of the accounting policy. Practice shows that most organizations consider the value of 50% to be the limiting rate of depreciation of fixed assets. What does it mean?

Let's say an enterprise accountant has calculated the wear rate of equipment in a production workshop, the result of the calculation is a value greater than or equal to 50%. In this case, the result indicates a high degree of wear and tear on fixed assets in this group and the need for their prompt replacement. If, according to the calculation results, an indicator below the level of 50% is obtained, this indicates that, in general, the degree of equipment wear corresponds to the established norm.

Suitability coefficient as an additional indicator of OS analysis

To obtain a complete picture of the condition and structure of the enterprise's fixed assets, along with the depreciation rate, the property suitability indicator is calculated. To do this, use the following formula:

CoefficientG = ResT / FirstSt * 100%,

• where ResSt is the residual value of the property minus accrued depreciation;
• FirstSt – the initial cost of fixed assets, taking into account the modernization and additional equipment carried out.

If the depreciation coefficient shows how depreciated the equipment is, then the fitness indicator shows the share of the residual value of fixed assets in relation to the amount of equipment according to the balance sheet (initial) accounting. Based on these coefficients, one can generally judge the technical and moral condition of fixed assets. Similar to the depreciation coefficient, the standard fitness indicator is stated in the accounting policy of the organization; its value should be no lower than 50%.

Example No. 2. JSC "Gallery" is engaged in the production of glass souvenirs. The table below provides information on the cost of fixed assets in the accounting of “Gallery” as of 02/01/17:

The Gallery's accountant calculated the wear and tear rates. The calculation results were presented in the form of a statement:

The following standards are approved in the accounting policy of the Gallery: for the wear rate - 50% and below, for the serviceability rate - 50% and above. Based on the calculations carried out, the following conclusions can be drawn:

• the degree of deterioration of production premises corresponds to the norm;
• the technical condition of the equipment can be assessed as good (degree of wear - 25%);
• computer equipment requires prompt replacement (degree of wear - 65%);
• the state of wear and tear of furniture slightly exceeds the norm and amounts to 51%; a detailed analysis of fixed assets by subgroups is required.

The general state of wear and tear of the Gallery's fixed assets can be assessed as satisfactory (42%).

Rubric “Question and answer”

Question No. 1. JSC Favorit is engaged in retail trade food products, for which he uses street refrigerators and trading trays. In the retail sector, the standard value for street wear commercial equipment accepted at 45%. Can Favorit fix the value of this indicator at 50% in its accounting policy?

“Favorite” has the right to accept a wear rate of 50% or lower as the norm. However, given the specifics of the industry, the indicator will not reflect the real picture of the state of fixed assets of this group. It is advisable for “Favorite” to take into account the figure of 45% and lower as the wear rate for street trading equipment.

Question No. 2. According to the calculation results, the wear rate of computer equipment at Globus LLC is 68%. The wear rate on the Globus is set at 50% and below. Is Globus obliged in this case to urgently replace the computer equipment used at the enterprise?

The legislation does not contain direct requirements regarding the replacement of fixed assets if the depreciation rate does not meet standard indicators. However, an analysis of the wear indicator at Globus suggests that the equipment is outdated and requires urgent replacement. If Globus does not have the opportunity to replace all computer equipment with newer ones, then it is advisable to conduct an additional analysis of the equipment in the context of subgroups (computer equipment, multifunctional devices, etc.) and identify which equipment requires priority replacement and which - No.

Main production assets of the enterprise- this is that part of the assets that is designed to be used by the enterprise for a long period of time (more than one year) and gradually (in parts) loses its value.

During operation, fixed assets are subject to wear and tear. A distinction is made between physical and moral wear and tear.

Physical deterioration means loss of use value of fixed assets. This includes mechanical wear, fatigue wear of metal and other structural materials, deformation of individual structures as a result of sedimentary phenomena, etc. The degree of physical wear depends on a number of factors, primarily the intensity of use of fixed assets, time of actual use, qualifications of maintenance personnel, structural features and operating conditions of the equipment.

There are two methods for determining the degree of physical wear:

• according to the technical condition based on an expert assessment of the object;
• by service life or volume of work. Physical deterioration occurs unevenly even among identical elements of fixed assets.

A distinction is made between complete and partial wear and tear.

When the existing fixed assets are completely worn out, they are replaced with new ones, for example, capital construction or ongoing replacement.

Partial wear and tear is compensated by repair.

Obsolescence is expressed in the relative depreciation of fixed assets due to the emergence of new types of equipment before the end of the service life of fixed assets in use. There are obsolescence of the first and second kind.

Obsolescence of the first kind is caused by an increase in labor productivity in industries producing fixed assets, as a result of which similar types of machinery, equipment, etc. become cheaper than previously produced and more competitive as a result of lower prices.

Obsolescence of the second kind is the result of the creation of more advanced and more cost-effective machines, equipment and other types of fixed assets.

Taking into account obsolescence is of great importance in the context of the rapid implementation of scientific and technological progress, as a result of which new (and sometimes completely new) types of machines and equipment appear that have higher productivity and better operating conditions. Under normal (crisis-free) functioning of the economy, the replacement of obsolete models of machines, equipment, transmission devices and other fixed assets is necessary for the production of competitive products with lower production costs than before the replacement of obsolete fixed assets.

The main source of covering costs associated with updating fixed assets is the enterprise's own funds. They accumulate over the entire service life of fixed assets in the form of depreciation charges.

During operation, fixed production assets are subject to physical and moral wear and tear.

Under physical wear and tear understand the loss of fixed production assets of their consumer properties and value as a result of their operation (1st form) and the influence of the environment (2nd form). The rate of physical wear of equipment depends on the quality of its manufacture, operation, technological and repair maintenance, the level of extensive and intensive use, the type of material being processed, climatic features, etc. Physical wear and tear leads to a decrease in the consumer properties and cost of labor tools. The physical wear and tear of equipment during current, medium and major repairs is partially eliminated.

Obsolescence means of labor is a consequence of scientific and technological progress and means the loss of part of their value without corresponding physical wear and tear. This phenomenon was first studied by K. Marx, but scientific debate continues to this day.

There are obsolescence of the first and second forms. Obsolescence of the first form is a consequence of an increase in labor productivity in the manufacturing sector and a decrease in costs and prices for tools of labor that are similar in technical and economic indicators to the current ones. This means a reduction in their replacement cost. The amount of obsolescence of the first form ( M 1) can be determined by the formula:

Where CPU, Color- respectively, the initial and replacement cost of a given means of labor in comparable monetary units.

As a percentage, obsolescence of the first form () is equal to:

Obsolescence of the second form is a consequence of the emergence of more advanced and economical machines and equipment, which make it possible to satisfy a particular need better and at lower costs. Obsolescence of the second form can affect both existing obsolete machines and those that have not been in operation, that is, not yet an element of the OPF. To do this, it is necessary that more advanced machines not only be mastered in production, but also enter the market in quantities sufficient to compete with existing ones. For universal-purpose labor tools, the maximum possible amount of obsolescence of the second form is directly proportional to the size of the gap in socio-economic efficiency compared to more advanced ones.

For tools that have not been in use, the amount of obsolescence of the second form ( M 2) is determined by the difference between the price of their acquisition ( C) and new price ( Tsn) in comparable monetary units:

At the same time, the new price of an obsolete machine cannot be less than its value at the price of scrap metal or proceeds from sales for spare parts or for secondary uses.

Obsolescence ( M 2) an existing obsolete tool of labor occurs when it is economically justified to replace it with a more advanced one before the optimal service life (resource) for material wear and tear is exhausted, which leads to the loss of part of the labor embodied in it. The greater the amount of underutilized resource of the replaced tool, the greater and M 2, and vice versa. Losses from M 2 are compensated by the effect of using a more advanced tool.

The issues of quantitative assessment of the physical and moral deterioration of OPF are debatable. This is especially evident in the example of machinery and equipment. In accordance with the accepted accounting system, the physical wear and tear of the machine in value terms ( If) is determined by the amount of accrued depreciation for renovation. When using the uniform method, the amount of wear was calculated using the formula:

Where Tf- time the machine was in operation at the time of wear determination, years;

Na- annual depreciation rate for renovation, %.

Sp(e)- the original or replacement cost of the machine.

When revaluing the general fund, the amount of depreciation is also indexed.

The amount of physical wear and tear on the machine as a percentage ( Ifp) is determined by the formula:

Where TN- standard service life of the machine, years;

Residual value of the car ( So) is calculated as the difference between the original or replacement cost ( Sp(e)) and the amount of wear ( If):

This assessment of wear and tear and residual value of machines is very conditional, since the accrued amounts of depreciation in most cases do not reflect the real loss of value of machines due to large differences in the level of use, quality Maintenance, repair, operation, etc. It does not take into account the fact that as a result of repairs, especially capital and medium repairs, the physical wear and tear of the machine is significantly reduced. In addition, the standard service life of a machine, as a rule, differs from the economically rational one.

In Fig. 4.1 shows the dynamics of wear and tear and residual value of the machine in accordance with the current method of their assessment.

In Fig. 4.2 shows the nature of the actual change in wear and tear and the residual value of a machine, during the operation of which one major repair is carried out. In this case, it was carried out at time tp, which reduced the amount of wear from the value I1 to I2. The residual value of the machine after completion of the overhaul increased from the value S1 to S2. Complete physical wear and tear of a machine occurs at the moment of exhaustion of its optimal service life (resource) in terms of material wear and tear (To).

The considered nature of the change in the residual value of machines was first established by Professor R.N. Kolegaev.

If at the moment Tm this machine is effectively replaced by a more economical one and written off as scrap metal, then its physical wear and tear as a percentage will be equal to Im, and the residual value of the machine will be Sm.

Nf, % (machine wear) So, UAH. (residual value)

100 Sp, UAH. (initial cost)

0 Tn 0 Tn T

Rice. 4.1. Dynamics of wear and tear (a) and residual value of the machine (b) in accordance with current valuation methods using the usual straight-line depreciation method

If machine wear and tear So residual value

0 tp Tm To T 0 tp Tm To T

a) service life, years b) service life, years

Rice. 4.2. Dynamics of wear and tear (a) and residual value (b) of the machine,

which reflects real patterns

The amount of obsolescence of the machine ( M 2) equal to the difference between the residual value ( Sm) and proceeds from writing off the car or scrapping it, minus sales costs ( IN).

Replacement of an outdated machine at the moment of exhaustion of its resource due to material wear and tear ( T0) or later does not cause obsolescence. However, the consumer will suffer losses from using an obsolete machine.

Effective ways to reduce losses from obsolescence are a high level of use of labor tools in terms of time and power, their timely modernization or sale to other areas of use where their operation will be effective.

Compensation for physical wear and tear of labor equipment is carried out through major repairs (partially) or replacement with new ones (entirely). Compensation for obsolescence is carried out by modernization (partially) or replacement with more productive and economical tools of labor (completely). At the enterprise, it is necessary to maintain a rational relationship between modernization, replacement and additional introduction of new tools in order to achieve maximum socio-economic efficiency of reproduction of means of labor.