Tutorial: Business Academy Topic: Fixed assets depreciation ( 2
nd part) Prepared by : Ing. Jana ustrov Projekt Anglicky v odbornch
pedmtech, CZ.1.07/1.3.09/04.0002 je spolufinancovn Evropskm socilnm
fondem a sttnm rozpotem esk republiky.
Slide 3
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
Slide 4
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 30.9.2011 for CZK 144.000,-, usable life was set
for 3 years (36 months). Depreciation has started since 1.10.2011.
Calculation: monthly depreciation: 144 000/36 = 4 000,-- accounting
depreciation year 2011: 3 x 4 000 = 12 000,--
Slide 5
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 600.000,-. Depreciation basis is estimated
number of kilometres for its useful life that is CZK 150.000,-. In
the first year the car was driven 15.000km. Calculation:
Depreciation for 1 km: 600 000 / 150 000 = CZK 4,- Accounting
depreciation in the first year: 15 000 x 4 = 60 000,-
Slide 6
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
Slide 7
Audio visuals...................................18 months
Software, research & development...36 months Organization
costs.60 months Other intangible assets....................72
months Depreciation starts on the first day of the following month
after the asset is put into use.
Slide 8
The company bought software on 5.4.2011 for CZK 72.000,-.
Calculate the depreciation for a year 2011. Calculation: The
depreciation period of software by ITA is 36 months. Monthly
depreciation: 72 000 / 36 = 2 000,-- Depreciation for 2011:od 1.
5., i.e. 8 months = 8 x 2 000 = 16 000,--
Slide 9
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)
Slide 10
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
Slide 11
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 1 270 000,-. Estimated number of products that should this
production line produce during its service life is 63 500 pieces.
In this year it has been produced 4800 products. Calculate the
amount of depreciation for this year.
Slide 12
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