ACCOUNTING POLICY ON FIXED ASSETS

Abstract

The purpose - to investigate the problematic issues of forming elements of accounting policies for fixed assets, taking into account the legal requirements and practical experience of enterprises Materials and methods. The study used research methods such as monographs and synthesis (when analyzing existing publications), analysis, induction and deduction, comparisons and key components. Research results. Fixed assets are those assets whose classification features are most common. In this regard, the formation of accounting policies for fixed assets should take into account specific features and ensure that all elements are disclosed. The enterprise has been provided with alternative options for choosing the accounting unit of accounting for fixed assets, namely: a complete device with all its accessories and accessories; a structurally separated object intended to perform certain independent functions; a separate complex of structurally connected objects of the same or different purpose, having common facilities, supplies, controls and a common foundation for their maintenance, whereby each object can perform its functions, and the complex does some work only within the complex and not independently; another asset that meets the definition of an item of property, plant and equipment, or part of an asset that is controlled by an entity. Methodological recommendations regulate the conditions for increasing the initial value of fixed assets at the expense of capital repairs. When recognizing an item of property, plant and equipment and placing it on the balance sheet, an entity must determine its useful life. The Guidelines for Fixed Assets Accounting indicate that an entity may extend the classification by dividing into fixed assets (subgroups) the fixed assets for own, leased and in-use, stock, lease, repair, modernization, reconstruction, in partial liquidation, etc. In addition, an entity may establish different methods of depreciation for different accounting groups of property, plant and equipment (except land and pending capital investments). The value of fixed assets, which are reflected in the accounting and balance sheet, may not correspond to their real value. Therefore, businesses have the right to revaluate fixed assets. The applicable standards do not qualify for reassessment as mandatory. Therefore, the company makes its own decisions about the need for its implementation. It should be remembered that when a particular asset of a fixed asset is overvalued, all the assets of the fixed asset group to which that asset belongs must be overestimated. In addition, in the accounting policy order, it is advisable to specify the restriction on the distribution of additional capital, namely: to distribute among the founding members of the company or not to distribute. Conclusions. According to the results of the research, it is established that a balanced accounting policy on fixed assets is able to improve management efficiency, achieve the set goals, optimize the costs of the enterprise. Structuring of persons interested in obtaining accounting information, determining the scope of its application in financial, management accounting, auditing, analysis, management makes it possible to use this tool to improve the quality of management.