Snmek 1
Anglicky v odbornch pedmtech"Support of teaching technical subjects in EnglishTutorial: Business Academy
Topic: Fixed Assets Depreciation (1st part)
Prepared by: Ing. Jana ustrov
Projekt Anglicky v odbornch pedmtech, CZ.1.07/1.3.09/04.0002je spolufinancovn Evropskm socilnm fondem a sttnm rozpotem esk republiky.
Physical as a result of use, by external influence
Moral as a result of technical development
Depreciation = tangible fixed assets depreciation per an accounting period Accumulated depreciation = total depreciation of the fixed assets for the entire period of use
Purchase priceaccumulated depreciation=residual price
Tangible fixed assets depreciation (TFA)
Accounting depreciationThey express the actual assets depreciationThey are in accordance with physical and moral depreciation of assetsThey are based on the Accounting Act. The company determines them in their depreciation schedule.
Tax depreciationThey are based on the Income Tax LawThey express maximum amount that can be as depreciation applied as a tax deductible expenseTypes of depreciation
1. The inclusion of depreciation in the property under the Income Tax ActMethod for calculating the depreciation of tangible fixed assetsDepreciation classMinimumuseful lifeExample13 yearsOffice machinery, computers25 yearsCars, television receivers, pumps310 yearsCranes, lifts, turbines, boilers420 yearsWooden and plastic buildings, chimneys530 yearsProduction buildings, bridges, roads650 yearsOffice buildings, hotels, schools
2. Determination of depreciation methodStraight-line depreciationThe maximum depreciation rates are assigned to the depreciation groupsAnnual depreciation = (input price x annual rate) / 100
Depreciation categoryRate in the 1st yearRate in following years120,040,0211,022,2535,510,542,155,1551,43,461,022.02
Accelerated depreciationThe rules are defined in the Income Tax ActThe basis are coefficients that are assigned to depreciation groupsThe period of depreciation is not shorter, but the depreciation is higher at the beginning in comparison with straight-line depreciation
1. year = input price following years= 2 x residual price k1 k nk1 = coefficient in the 1st year of depreciationk = coefficient for following yearsn = number of years that has been depreciated
Depreciation categoryCoefficient for the 1st yearCoefficient for following years13425631011420215303165051Table of coefficients for accelerated depreciation
Fixed assets that were assigned to use have been depreciatedPieces of land, works of art and collections have not been depreciatedThe selected method of depreciation cannot be changed over the depreciation periodDepreciation is possible up to the amount of the purchase priceTax depreciation has been expressed as annualOwner depreciates the propertyDepreciation should be rounded up to the nearest crownRules for tax depreciation
How have been fixed assets worn?What is the depreciation group?Which law does the tax depreciation govern? What does accumulated depreciation mean?What is the relationship between the accumulated depreciation and the residual price?How do we recognise that the property is fully depreciated?Is it possible to change depreciation method during the depreciation period?
Questions:
tohl, P. Uebnice etnictv 2011 2. dl pro stedn koly a pro veejnost. Znojmo: NAKLADATELSTV TOHL PAVEL ING. VZDLVAC STEDISKO,2011.ISBN 978-80-87237-36-6.varcov J. a kol. Ekonomie -strun pehled, teorie a praxe aktuln a v souvislostech. Zln: TOPPEX, s. r. o., 2009.ISBN 978-80-903433-7-5.Bibliography:
