The estimated cost of work on the reconstruction of the facility is 1,416,000 rubles. (including VAT RUB 216,000). Payment for work is made in in full after acceptance of the completed work.

The initial cost of the building in accounting and tax accounting is RUB 9,600,000, period beneficial use– 384 months (the object belongs to the tenth depreciation group), depreciation is calculated using the straight-line method. The organization does not use the right to use bonus depreciation.

As a result of the reconstruction, the area of ​​the building increased, but the useful life did not change. As of the date of completion of reconstruction work, the remaining useful life of the building is 144 months, the amount of accrued depreciation in accounting and tax accounting is 6,000,000 rubles.

Civil relations

The legal relations of the parties when performing work on the reconstruction of the building are regulated by an agreement concluded between the parties construction contract(Clause 2 of Article 740 Civil Code RF).

Contract price in in this case is defined as the estimated cost of the work and is paid in full at a time after acceptance of the work by the customer, which is provided for in clause 1 of Art. 743, paragraph 2 of Art. 746 of the Civil Code of the Russian Federation.

Accounting

The costs of reconstructing a building accounted for as part of the operating system are long-term investments and increase initial cost this building. This follows from paragraphs 14, 27 of the Regulations on accounting“Accounting for fixed assets” PBU 6/01, approved by Order of the Ministry of Finance of Russia dated March 30, 2001 N 26n, clause 1.2 of the Accounting Regulations long term investment, approved by Letter of the Ministry of Finance of Russia dated December 30, 1993 N 160.

Costs for reconstruction carried out by contract are taken into account in an amount equal to the cost of reconstruction work (excluding VAT, subject to tax deduction), accepted from the contractor, and are preliminarily reflected as investments in fixed assets(clause 2.3, paragraph 3, clause 3.1.2 of the Regulations on accounting for long-term investments, clauses 42, 70 Guidelines on accounting of fixed assets approved by Order of the Ministry of Finance of Russia dated October 13, 2003 N 91n (hereinafter referred to as the Guidelines)).

Upon completion of the work, reconstruction costs, accounted for as investments in non-current assets, increase the initial cost of the fixed assets and are written off as a debit to the fixed assets accounting account (paragraph 2 of clause 42 of the Methodological Instructions).

By the amount of increase in the initial cost of the building, the data in the building’s inventory card is adjusted (clause 40 of the Methodological Instructions).

According to para. 6 clause 20 PBU 6/01, clause 60 of the Methodological Instructions, upon completion of reconstruction, the useful life of the building is reviewed and a new one is determined annual amount depreciation on it based on residual value building (initial cost minus accrued depreciation), increased by the amount of reconstruction costs, and a new useful life.

In this case, the useful life of the building has not changed, and the residual value of the building, taking into account reconstruction costs, is RUB 4,800,000. (9,600,000 rub. – 6,000,000 rub. + (1,416,000 rub. – 216,000 rub.))

Consequently, the amount of monthly depreciation for the reconstructed building (from the month following the month in which the original cost of the building increased) will be 33,333.33 rubles. (RUB 4,800,000 / 144 months).

The amounts of monthly accrued depreciation for the building are recognized as expenses for common types activities (clauses 5, 16 of the Accounting Regulations “Expenses of the Organization” PBU 10/99, approved by Order of the Ministry of Finance of Russia dated May 6, 1999 N 33n).

Accounting records for the transactions under consideration are made in accordance with the Instructions for the application of the Chart of Accounts for accounting the financial and economic activities of organizations, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n, and are shown below in the table of transactions.

Value added tax (VAT)

VAT presented by the contractor for the work performed on the reconstruction of the building is accepted for deduction on the basis of the contractor’s invoice, drawn up in accordance with the requirements of the law, provided that the result of the work is accepted for accounting (in the account for accounting for investments in non-current assets), the availability of appropriate primary documents and the use of the reconstructed building for carrying out operations subject to VAT (paragraph 1, paragraph 6, article 171, paragraph 5, article 172 of the Tax Code of the Russian Federation). The Federal Tax Service of Russia adheres to a similar position (Letter dated January 20, 2016 N SD-4-3/609@).

Corporate income tax

In tax accounting, the cost of the reconstruction of a building related to the OS increases the initial cost of the building (clause 2 of Article 257 of the Tax Code of the Russian Federation).

According to paragraph 2 of Art. 259.1 of the Tax Code of the Russian Federation, when applying the linear method, the amount of depreciation accrued per month in relation to an asset is determined based on its original cost and the depreciation rate determined for this object.

Changes in the depreciation rate determined at the time the facility was put into operation, including after its reconstruction, Ch. 25 of the Tax Code of the Russian Federation is not provided for. In this regard, according to the explanations of the Ministry of Finance of Russia, after the reconstruction, the fixed asset continues to be depreciated at the rate established when it was put into operation (see, for example, Letter dated July 10, 2015 N 03-03-06/39775).

Let us note that this position is not indisputable. Available court decisions, which indicate that in such situations the organization has the right to charge depreciation based on the residual value of the fixed assets, increased by the amount of reconstruction costs, and the remaining useful life (see, for example, Resolution of the Federal Antimonopoly Service of the Moscow District dated September 21, 2010 N KA-A40/ 10411-10). However, such a position will most likely have to be defended in judicial procedure. Detailed information on this issue, see the Practical Guide to Income Tax.

In this consultation, we proceed from the fact that the organization calculates depreciation on the building after reconstruction, guided by the point of view of the Russian Ministry of Finance.

In this case, the amount depreciation charges for the reconstructed building, monthly included in the costs associated with production and sales, will be 28,125 rubles. ((9,600,000 rub. + (1,416,000 rub. – 216,000 rub.)) x (1 / 384 x 100%)) (clause 3, clause 2, article 253, clause 3, article 272 of the Tax Code of the Russian Federation ).

The calculation of depreciation on the reconstructed building in the specified amount begins on the first day of the month following the month in which the reconstruction was completed and the initial cost of the building increased, which follows from clause 4 of Art. 259 of the Tax Code of the Russian Federation. For more information on the issue of calculating depreciation based on the increased initial cost of the object, see Practical guide on income tax<*>.

Note that with this approach, at the end of the remaining useful life (144 months), the cost of the building will not be fully depreciated. According to paragraph 5 of Art. 259.1 of the Tax Code of the Russian Federation, the accrual of depreciation stops, including from the first day of the month following the month when the cost of the depreciable property was completely written off.

That is, depreciation on the reconstructed building will be accrued at the end of the useful life of this object. A similar point of view was expressed in Letter of the Ministry of Finance of Russia dated 07/05/2011 N 03-03-06/1/402.

In this case (provided that the building is not removed from the depreciable property), depreciation on the reconstructed building will be accrued over 171 months ((9,600,000 rubles - 6,000,000 rubles + (1,416,000 rubles - 216,000 rubles .)) / 28,125 rub.). At the same time, the amount of depreciation in tax accounting in last month depreciation will be 18,750 rubles. (RUB 9,600,000 – RUB 6,000,000 + RUB 1,416,000 – RUB 216,000 – RUB 28,125 x 170 months).

Application of PBU 18/02

Due to the fact that the amount of depreciation after reconstruction according to accounting data exceeds the amount of depreciation in tax accounting, during the remaining useful life in accounting, deductible temporary differences (DTD) arise monthly in the amount of the excess accounting depreciation above the tax tax and the corresponding deferred tax assets (DTA) are reflected. Provided that the building does not leave the depreciable property, the specified VVR and ONA are reduced (up to full repayment) during the remaining 27 months (171 months - 144 months) of depreciation in tax accounting (clauses 11, 14 , 17 Accounting Regulations “Accounting for calculations of corporate income tax” PBU 18/02, approved by Order of the Ministry of Finance of Russia dated November 19, 2002 N 114n).

Analytical account symbols used in the posting table

To balance sheet account 68 “Calculations for taxes and fees”:

68-VAT “Calculations for VAT”;

68-pr “Calculations for income tax.”

Contents of operations	Debit	Credit	Amount, rub.	Primary document
When accepting reconstruction work
The cost of work performed by the contractor is reflected (1 416 000 – 216 000)	08-3	60	1 200 000	Certificate of acceptance of completed work, Certificate of cost of work performed and expenses
VAT claimed by the contractor is reflected	19	60	216 000	Invoice
VAT claimed by the contractor is accepted for deduction	68-VAT	19	216 000	Invoice
Increased initial cost of the building	01	08-3	1 200 000	Certificate of acceptance and delivery of fixed assets, Inventory card for recording a fixed asset item
When paying for work performed
Payment was made to the contractor for the work performed	60	51	1 416 000	Bank account statement
Monthly starting from the month following the month of completion of reconstruction for 144 months
Depreciation accrued	20	02	33 333,33	Accounting certificate-calculation
SHE is reflected ((33,333.33 – 28,125) x 20%)

If an institution has reconstructed a building, the accountant often has questions related to the recording of transactions in accounting. How to account for costs? Do you need to increase the initial cost of an asset? We analyzed the current standards taking into account innovations.

Conclusion of an agreement

When concluding a construction contract for the reconstruction of a building, you must be guided by the rules. According to Article 10 of this law, an order can be placed through bidding in the form of a competition or auction, as well as without bidding (in the form of a request for quotations from a single supplier). Work on the reconstruction of the building is included in the goods (works, services), the placement of orders for supplies (execution, provision) of which is carried out through an auction (approved).

However, if the amount of purchases for the types of work performed does not exceed during the quarter established by the Bank of Russia size limit cash settlements between legal entities for one transaction, the institution has the right to place an order with a single contractor (). Therefore, if during the quarter there are no similar works for the reconstruction of a building, the institution has the right to enter into an agreement for their implementation with a single contractor without holding a tender.

Don't confuse the terms

This point is also important. Reconstruction costs increase the original cost of the asset. But expenses, for example for major repairs, have nothing to do with the original cost. Therefore, it is necessary to clearly determine what took place: repair or reconstruction.

There are no clear definitions in accounting regulations. From the analysis of the standards for the application of the Unified Chart of Accounts, we can conclude that if, as a result of the work performed, there is an improvement (increase) in the initially adopted standard indicators of the functioning of a fixed asset object (useful life, capacity, quality of use, etc.), then these works relate to reconstruction. For a clearer understanding of the situations, let us turn to construction regulations.

Until recently, the concepts of “major repairs”, “reconstruction” of buildings (structures), as well as “construction” itself, were used to establish organizational requirements in the aggregate. Now these concepts are delimited by the Federal Laws of July 18, 2011 and, as amended.

Reconstruction of objects capital construction - changing the parameters of capital construction projects, their parts (height, number of floors, area, volume), including:

• superstructure, reconstruction and expansion of capital construction projects;
• replacement and (or) restoration of load-bearing building structures of objects, with the exception of replacement individual elements such structures for similar or other elements that improve the performance of such structures and (or) restoration of these elements.

However, changes in the production capacity of capital construction projects and changes in the quality of engineering and technical support in themselves are no longer considered reconstruction.

Before the changes under consideration, he explained the concept of “reconstruction” as a change in the parameters of capital construction projects, their parts (height, number of floors, area, production capacity indicators, volume) and the quality of engineering and technical support.

But major repairs of buildings (structures) is replacement (restoration):

• building structures (except for load-bearing ones) or their elements;
• systems and networks of engineering support or their elements;
• individual elements of load-bearing building structures.

Reflection of the situation in accounting

The institution's expenses for the reconstruction of fixed assets are collected as “Investments in non-financial assets.” Upon completion, the amounts are debited to the corresponding account opened for “Fixed Assets”. But what if, for example, after reconstruction the residential premises are transferred to non-residential premises? In this case, according to the author, it is enough to make internal postings to analytical accounts opened to accounts and.

	Debit	Credit
Reflected expenses in the amount replacement cost an item of fixed assets (it is assumed that the increase in the initial cost is reflected before the transfer of the item to another category)	101 12 310 "Increasing value non-residential premises - real estate institutions"	101 11 410 “Reducing the cost of residential premises - real estate of the institution”
The amount of previously accrued depreciation is reflected	104 11 410 “Reduction through depreciation of the cost of residential premises - real estate of the institution”	104 12 410 “Reduction through depreciation of the cost of non-residential premises - real estate of the institution”

Information about the reconstruction carried out is entered into the Inventory card for recording fixed assets.

Please note that as a result of reconstruction and modernization work (which involves changes in basic operational characteristics), as a rule, the depreciation rate also changes. That is, in the new analytical account, the newly accrued depreciation will be reflected in different amounts. At the same time, changes must be made to the registers analytical accounting, in particular, in the Inventory card for recording fixed assets (

FEATURES OF REFLECTING COSTS IN ACCOUNTING DURING REPAIR, RECONSTRUCTION AND MODERNIZATION OF BUILDINGS, STRUCTURES AND EQUIPMENT

Specifics various industries national economy somewhat complicates a unified understanding of such terms and definitions as major, current and medium repairs, reconstruction, modernization, restoration, etc., on which their correct application in practice depends: when writing off the costs of such work to the cost of production (work, services) or an increase in the cost of objects and, as a consequence, when calculating depreciation and calculating VAT.

When classifying the work being carried out as one of the types under consideration, it is first of all necessary to be guided by industry standards and rules, as well as those in force in this area regulatory documents. Such documents include in particular:

"Investments in non-current assets",

subaccount 5

“Costs to increase the value of fixed assets”

By the amount of the increase in the cost of fixed assets when putting a fixed asset object into operation (the costs of performing work are attributed to the increase in the cost of fixed assets)

If the work is carried out in an economic way, the following entries are made:

10, 25, 26, 51, 60, 76

By doing repair work The contractor prepares the following entries for the amount of repairs performed:

If the second option is used by the organization, in order to evenly attribute the costs of repairs to the cost of products (works, services), a repair fund can be created. His education must be provided for in accounting policy organizations. The size of the annual repair fund is determined based on the approved repair schedule and the annual planned estimate for its implementation.

Creation of a fund (reserve) by monthly accrual 1/12 of its estimated annual amount, determined in the order on accounting policies, is reflected in the accounting registers by the entry:

The correctness of the formation and use of repair fund amounts according to actual estimates and calculations is periodically (and always at the end of the year) checked and, if necessary, adjusted. The excess of the accrued amounts of the repair fund over the actual costs of its implementation is reflected in accounting using similar entries using the “red reversal” method.

If the amount of the accrued repair fund is not enough, then at the end of the year (quarter) it is additionally accrued for the missing amount.

Reflection in accounting of repair costs at the expense of the repair fund is carried out using the following entries:

IN reporting period the amount of repair costs recorded on account 97 can be written off in equal installments over the number of months or years planned by the organization. The following entries are made:

For the actual amount of costs for repairs of fixed production assets	20, 23, 25, 26, 44

As for the calculation of VAT, in accordance with the Law of the Republic of Belarus dated November 16, 1999 No. 324-Z “On Amendments and Additions to the Law of the Republic of Belarus “On Value Added Tax”, the value added tax relating to this species works, is subject to deduction in full within the amount of VAT calculated on the proceeds from the sale of products (works, services). The following accounting entries are prepared:

The amount of materials received used in the repair of fixed assets
For the cost of contract work performed by third parties during the repair of fixed assets
For the amount of VAT allocated by suppliers and contractors	"Value added tax"
For the amount of paid goods material assets and work used in the repair of fixed assets
For the amount of VAT paid	“Value added tax on purchased inventory, works, services
For the amount of VAT accepted for deduction

The same procedure applies when reflecting in accounting the repair of leased fixed production assets, provided that the costs of maintaining them in working order are borne by the party to the agreement - the lessee or the lessor.

October 16, 2006

Vladimir Gmyzin, economist

From the editor: From February 21, 2007, the resolution of the Ministry of Taxes and Duties of the Republic of Belarus dated January 31, 2004 No. 16 “On approval of the Instructions on the procedure for calculating and paying value added tax” on the basis of the resolution of the Ministry of Taxes and Duties dated February 5, 2007 No. 22 became invalid .

What needs to be done, what documents need to be drawn up and within what period of time before capital construction using economic and mixed methods and putting the facility into operation. Please send us forms and samples of these documents. Clarification: We are going to reconstruct the OS object (our own). How to document and record this

In this situation, the organization takes into account all costs for the reconstruction of the operating system on account 08 until the reconstruction is completed. After the reconstruction is completed, all costs from account 08 are written off to account 01, increasing the initial cost of the fixed assets.

Accounting for the costs of reconstruction of fixed assets depends on the following factors: when the reconstruction was completed; whether the original cost of fixed assets has been written off as expenses.

If the reconstruction of a fixed asset was carried out before its commissioning, then include these costs in the initial cost of the property.

If the reconstruction of a fixed asset was carried out after its commissioning and the cost of the object has not yet been completely written off, increase the initial cost of the property by these costs. If the reconstruction of a fixed asset was carried out after its commissioning, but the cost of the object has already been completely written off as expenses, take these costs into account in reducing the tax base on a separate basis.

The decision to reconstruct fixed assets must be formalized by order of the manager. Upon completion of the reconstruction, draw up an acceptance certificate in form No. OS-3. It is filled out regardless of whether the reconstruction was carried out economically or by contract. When carrying out reconstruction partially with the help contractor draw up a contract.

In addition to the act in form No. OS-3, an acceptance certificate in form No. KS-2 and a certificate of the cost of work performed and expenses in form No. KS-3, approved by Resolution of the State Statistics Committee of Russia dated November 11, 1999 No. 100, must be signed.

Reflect the costs of reconstruction on the fixed asset inventory card.

When calculating income tax, reconstruction costs are not taken into account - since they are included in the original cost of the property - they transfer their value to expenses through depreciation. When reconstructing buildings, structures and premises using economic methods, VAT must be charged. An organization has the right to deduct input VAT in general procedure. The organization also has the right to deduct VAT accrued on construction and installation work (on the last day of each quarter).

The rationale for this position is given below in the materials of the Glavbukh System

Recommendation: How to carry out and reflect in accounting and taxation the reconstruction of fixed assets

During operation, fixed assets wear out morally and physically. Reconstruction is one of the ways to restore a fixed asset (clause 26 of PBU 6/01).

Reconstruction of fixed assets can be performed:

• economically (i.e., using the organization’s own resources);
• contract method (i.e. with the involvement third party organizations(entrepreneurs, citizens)).*

Documenting

The decision to reconstruct fixed assets must be formalized by order of the head of the organization, which must indicate:

• reasons for reconstruction;
• timing of its implementation;
• persons responsible for the reconstruction.*

This is explained by the fact that all operations must be documented (Article 9 of the Law of December 6, 2011 No. 402-FZ).

If the organization does not carry out the reconstruction on its own, then a contract must be concluded with the contractors (Article 702 of the Civil Code of the Russian Federation).*

When transferring a fixed asset to a contractor, issue an act of acceptance and transfer of fixed assets for reconstruction. Since there is no unified form of the act, the organization can develop it independently. If the fixed asset is lost (damaged) by the contractor, the signed act will allow the organization to demand compensation for losses caused (Article and Civil Code of the Russian Federation). In the absence of such an act, it will be difficult to prove the transfer of fixed assets to the contractor.

When transferring a fixed asset for reconstruction to special unit An organization (for example, a repair service) should draw up an invoice for internal movement in form No. OS-2. If the location of the fixed asset does not change during reconstruction, no transfer documents need to be drawn up. This order follows from the approved instructions.

Upon completion of the reconstruction, an acceptance certificate is drawn up in form No. OS-3. It is filled out regardless of whether the reconstruction was carried out economically or by contract. Only in the first case, the organization draws up the form in one copy, and in the second - in two (for itself and for contractors). The act is signed by:

• members of the acceptance committee created in the organization;
• employees responsible for the reconstruction of the fixed asset (or representatives of the contractor);
• employees responsible for the safety of fixed assets after reconstruction.

After this, the act is approved by the head of the organization and handed over to the accountant.*

If the contractor carried out the reconstruction of a building, structure or premises, which relates to construction and installation work, then in addition to the act in form No. OS-3, an acceptance certificate in form No. KS-2 and a certificate of the cost of work performed and expenses in form No. must be signed. KS-3, approved by Resolution of the State Statistics Committee of Russia dated November 11, 1999 No. 100.*

State registration of changes

As a result of reconstruction, the characteristics of the building (structure), which were originally indicated during its state registration, may change. For example, the total area or number of floors of a building has changed. In this case, the new characteristics of the building (structure) must be registered in the state register (clause 67 of the Rules, approved by Decree of the Government of the Russian Federation of February 18, 1998 No. 219). In this case, the building (structure) is not re-registered, but only an entry is made in the register about changes in its characteristics.*

To register changes in territorial office Rosreestr needs to submit:*

• application for amendments to the state register of rights to real estate and transactions with it;
• documents confirming changes in the relevant information previously entered into the state register (for example, a certificate from the BTI);
• payment order to pay state duty in the amount of 600 rubles. (Subclause 27, Clause 1, Article 333.33 of the Tax Code of the Russian Federation).

Accounting

Costs for the reconstruction of fixed assets change (increase) their initial cost in accounting (clause 14 of PBU 6/01).

The organization is obliged to keep records of fixed assets according to the degree of their use:

• in operation;
• in stock (reserve);
• for reconstruction, etc.*

Accounting for fixed assets by degree of use can be carried out with or without reflection in additional subaccounts to accounts 01 (). Thus, during long-term reconstruction, it is advisable to account for fixed assets in a separate sub-account “Fixed assets for reconstruction”. This approach is consistent with paragraph 20.

Debit 01 (03) subaccount “Fixed assets for reconstruction” Credit 01 (03) subaccount “Fixed assets in operation”
– the fixed asset was transferred for reconstruction.

Upon completion of the reconstruction, make the wiring:

Debit 01 (03) subaccount “Fixed assets in operation” Credit 01 (03) subaccount “Fixed assets under reconstruction”
– adopted from the reconstruction of the main asset.

Accounting for reconstruction costs

Costs for the reconstruction of fixed assets are taken into account on account 08 “Investments in non-current assets” (clause 42 of the Methodological Instructions approved by Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n). To ensure the ability to obtain data by type capital investments, to account 08 it is advisable to open a subaccount “Reconstruction Expenses”.

The costs of carrying out the reconstruction of fixed assets using economic methods consist of:

• from the cost of consumables;
• from employee salaries, deductions from it, etc.*

Reflect the costs of carrying out reconstruction on your own by posting:*

Debit 08 subaccount “Reconstruction expenses” Credit 10 (16, 23, 68, 69, 70...)
– the costs of reconstruction are taken into account.

If an organization carries out the reconstruction of fixed assets with the involvement of a contractor, then reflect his remuneration by posting:

Debit 08 subaccount “Reconstruction expenses” Credit 60
– the costs of reconstruction of fixed assets carried out by contract are taken into account.*

Upon completion of the reconstruction, the costs recorded on account 08 can be included in the initial cost of the fixed asset or taken into account separately on account 01 (). This is stated in paragraph 2 by order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n.

When including reconstruction costs in the initial cost of a fixed asset, make the following entry:

Debit 01 (03) Credit 08 subaccount “Reconstruction expenses”
– the initial cost of the fixed asset was increased by the amount of reconstruction costs.

In this case, reflect the costs of reconstruction in the inventory card for accounting for fixed assets in form No. OS-6 (OS-6a) or in the inventory book in form No. OS-6b (used by small enterprises). This is stated in the instructions approved by Resolution of the State Statistics Committee of Russia dated January 21, 2003 No. 7. If it is difficult to reflect information about the reconstruction carried out in the old card, open a new one instead (clause 40 of the Methodological Instructions approved by Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n).

When accounting separately, write off the costs of reconstruction to a separate subaccount to account 01 (). For example, the subaccount “Expenses for the reconstruction of fixed assets”:

Debit 01 (03) subaccount “Expenses for the reconstruction of fixed assets” Credit 08 subaccount “Expenditures for reconstruction”
– costs for reconstruction of fixed assets are written off to account 01 (03).

In this case, for the amount of expenses incurred, open a separate inventory card in form No. OS-6. This is stated in paragraph 2 of paragraph 42 of the Methodological Instructions, approved by order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n.

Depreciation during reconstruction

When carrying out reconstruction with a period of no more than 12 months, calculate depreciation on the fixed asset. If the reconstruction of a fixed asset takes more than 12 months, then suspend depreciation on it. In this case, resume depreciation after the reconstruction is completed. This procedure is established in paragraph 23 of PBU 6/01 and paragraph 63 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n.*

Situation: from what point in accounting should you stop and then resume depreciation on a fixed asset transferred for reconstruction for a period of more than 12 months

For accounting purposes, the specific moment of termination and resumption of depreciation on fixed assets transferred for reconstruction for a period of more than 12 months is not established by law. Therefore, the month from which the accrual of depreciation for accounting purposes for such fixed assets stops and resumes must be established independently by the organization.*

Wherein possible options can be:

• depreciation is suspended from the 1st day of the month in which the fixed asset was transferred for reconstruction. And it resumes from the 1st day of the month in which the reconstruction was completed;
• depreciation is suspended from the 1st day of the month following the month in which the fixed asset was transferred for reconstruction. And it resumes from the 1st day of the month following the month in which the reconstruction was completed.

Selected option to suspend and resume depreciation.*

The chief accountant advises: in your accounting policy for accounting purposes, establish the same procedure for stopping and resuming depreciation on fixed assets transferred for reconstruction for a period of more than 12 months, as in tax accounting.

Lifetime of OS after reconstruction

Reconstruction work can lead to an increase in the useful life of the fixed asset. In this case, for accounting purposes, the remaining useful life of the reconstructed fixed asset must be revised (clause 20 PBU 6/01, clause 60 of the Methodological Instructions approved by Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n). It does acceptance committee when accepting a fixed asset from reconstruction:

• based on the period during which it is planned to use the fixed asset after reconstruction for management needs, for the production of products (performance of work, provision of services) and other generation of income;
• based on the period after which the fixed asset is expected to be unsuitable for further use (i.e., physically worn out). This takes into account the mode (number of shifts) and negative operating conditions of the fixed asset, as well as the system (frequency) of repairs.

The acceptance committee must indicate that the reconstruction work did not lead to an increase in useful life in the act in form No. OS-3.

The results of the review of the remaining useful life in connection with the reconstruction of a fixed asset must be formalized by order of the manager.

Situation: how to calculate depreciation in accounting after reconstruction of a fixed asset*

The procedure for calculating depreciation after the reconstruction of a fixed asset is not defined by accounting legislation. Paragraph 60 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n, provides only an example of calculating depreciation charges using the linear method. So according to the example, when linear method the annual amount of depreciation charges for fixed assets after reconstruction is determined in the following order.

Calculate the annual depreciation rate of fixed assets after reconstruction using the formula:

Then calculate the annual depreciation amount. To do this, use the formula:

The amount of depreciation that must be accrued monthly is 1/12 of the annual amount (paragraph 5, clause 19 of PBU 6/01).

If an organization uses other methods of calculating depreciation (the reducing balance method, the method of writing off value by the sum of the numbers of years of useful life, the method of writing off value in proportion to the volume of production (work)), then the annual amount of depreciation charges can be determined in the following order:

• similar to the order given in the example for the linear method;
• independently developed by the organization.

The applied option for calculating depreciation on fixed assets after reconstruction should be fixed in the accounting policy of the organization for accounting purposes.

An example of reflecting depreciation on a fixed asset in accounting after its reconstruction*

CJSC Alfa repairs medical equipment. In April 2014, the organization reconstructed production equipment that was put into operation in July 2011.

The initial cost of the equipment is 300,000 rubles. The useful life according to accounting data is 10 years. The method of calculating depreciation is linear. As a result of the reconstruction, the useful life of the facility increased by 1 year.

Before reconstruction of the fixed asset annual rate depreciation was equal to 10 percent ((1: 10 years) ? 100%).

The annual depreciation amount was 30,000 rubles. (RUB 300,000 ? 10%).

The monthly depreciation amount was 2,500 rubles. (RUB 30,000: 12 months).

RUB 59,000 was spent on equipment reconstruction. The reconstruction lasted less than 12 months, so depreciation was not suspended. At the time of completion of the reconstruction, the actual service life of the equipment was 33 months. Its residual value according to accounting data is equal to:
300,000 rub. – (33 months ? 2500 rub./month) = 217,500 rub.

After reconstruction, the useful life of the fixed asset was increased by 1 year and amounted to 8.25 years (7.25 + 1).
The annual depreciation rate for equipment after reconstruction was 12.1212 percent ((1: 8.25 years) ? 100%).

The annual amount of depreciation is 33,515 rubles. ((RUB 217,500 + RUB 59,000) ? 12.1212%).

The monthly depreciation amount is RUB 2,793. (RUB 33,515: 12 months).

Reconstruction of the OS by third parties

If the organization has hired third parties to carry out work on the reconstruction of a fixed asset, then take into account the amounts of their remuneration when calculating salary taxes (contributions). For more information about this, see How to reflect remuneration under a civil contract for the performance of work (provision of services) concluded with a citizen in accounting and taxation.*

The procedure for calculating other taxes depends on the tax system that the organization uses.

BASIC: income tax

Do not take into account expenses for the reconstruction of non-production facilities in tax accounting. This is due to the fact that all expenses that reduce tax base, must be economically justified (clause 1 of Article 252 of the Tax Code of the Russian Federation). That is, related to production activities organizations.*

If the organization uses the cash method, increase the initial cost of the fixed asset as the reconstruction is completed and the costs of its implementation are paid (clause 3 of Article 273 of the Tax Code of the Russian Federation).

An example of how expenses for reconstruction of a fixed asset are reflected in accounting and taxation. The organization applies common system taxation*

In June–August 2014, Alfa CJSC reconstructed the equipment using a contract method. The cost of the work performed by the contractor amounted to 59,000 rubles, including VAT - 9,000 rubles. The act in form No. OS-3 was signed in August 2014.

Alpha uses the accrual method and pays income tax quarterly.

Accounting and tax accounting match up.

Bonus depreciation does not apply.

The organization does not perform operations that are not subject to VAT.

The initial cost of the equipment at which it was accepted for accounting is 300,000 rubles. The equipment belongs to the second depreciation group. Therefore, upon acceptance for accounting, a useful life of 3 years (36 months) was established. Depreciation is calculated using the straight-line method.

For accounting purposes, the annual depreciation rate is 33.3333 percent (1: 3 × 100%), the annual depreciation amount is 100,000 rubles. (RUB 300,000 ? 33.3333%), monthly depreciation amount – RUB 8,333/month. (RUB 100,000: 12 months).

For tax accounting purposes, the monthly depreciation rate for equipment is 2.7777 percent (1: 36 months ? 100%), the monthly amount of depreciation charges is 8333 rubles/month. (RUB 300,000 ? 2.7777%).

Since the reconstruction lasted less than 12 months, during the period of its implementation the accountant calculated depreciation on the equipment.

Reconstruction work did not lead to an increase in the useful life of the equipment. Therefore, for accounting and tax purposes, the useful life of the reconstructed equipment was not revised. In accounting, depreciation on equipment was calculated over a period of 24 months. Therefore, for accounting purposes, the remaining useful life of the fixed asset after reconstruction is 1 year (36 months - 24 months).

During the period of equipment reconstruction, Alpha’s accountant made the following entries in the accounting records.

In June and July 2014:

Debit 26 Credit 02
– 8333 rub. – depreciation on equipment has been calculated.

In August 2014:

Debit 08 subaccount “Expenses for the reconstruction of fixed assets” Credit 60
– 50,000 rub. (RUB 59,000 – RUB 9,000) – the cost of the contractor’s work is taken into account;

Debit 19 Credit 60
– 9000 rub. – VAT is taken into account on the cost of the contractor’s work;

Debit 68 subaccount “VAT calculations” Credit 19
– 9000 rub. – accepted for VAT deduction;

Debit 60 Credit 51
– 59,000 rub. – paid for the contractor’s work;

Debit 26 Credit 02
– 8333 rub. – depreciation on equipment has been calculated;

Debit 01 Credit 08 subaccount “Expenses for the reconstruction of fixed assets”
– 50,000 rub. – the initial cost of equipment was increased by the cost of reconstruction.

The initial cost of the equipment, taking into account the costs of reconstruction, amounted to 350,000 rubles. (RUB 300,000 + RUB 50,000). The residual value of the equipment without taking into account these expenses is equal to 100,008 rubles. (300,000 rubles – 8333 rubles? 24 months), and taking into account – 150,008 rubles. (RUB 100,008 + RUB 50,000).

For accounting purposes, the annual depreciation rate for equipment after reconstruction is 100 percent (1: 1 year? 100%), the annual depreciation amount is RUB 150,008. (RUB 150,008 ? 100%), monthly depreciation amount – RUB 12,501/month. (RUB 150,008: 12 months).

In tax accounting, the monthly amount of depreciation deductions since September 2014 was:
350,000 rub. ? 2.7777% = 9722 rub./month.

Since after reconstruction the monthly amount of depreciation deductions for accounting and tax accounting purposes began to differ, a temporary difference of 2,779 rubles arose in accounting. (12,501 rub./month – 9,722 rub./month), leading to the formation of a deferred tax asset.

From September 2014 to August 2015 (12 months), the accountant reflected the accrual of depreciation charges by posting:

Debit 26 Credit 02
– 12,501 rub. – depreciation on equipment has been calculated;

Debit 09 Credit 68 subaccount “Calculations for income tax”
– 556 rub. (RUB 2,779 ? 20%) – deferred accrued tax asset from the difference between monthly depreciation deductions for accounting and tax purposes.

In August 2015, in accounting, the equipment was fully depreciated (350,000 rubles - 8333 rubles / month - 24 months - 12,501 rubles / month - 12 months). Therefore, from September 2015, the accountant stopped calculating depreciation on it.

In tax accounting, the equipment is not depreciated in the amount of RUB 33,344. (350,000 rubles – 8333 rubles/month? 24 months – 9722 rubles/month? 12 months). Therefore, in tax accounting, the accountant continued to calculate depreciation.

From September to November 2015 (3 months), as depreciation was calculated for tax accounting purposes, the accountant wrote off the deferred tax asset:

– 1944 rub. (RUB 9,722 ? 20%) – the deferred tax asset is written off.

In December 2015, the amount of depreciation charges amounted to 4,178 rubles. (33,344 rubles – 9722 rubles/month? 3 months). The accountant reflected the write-off of the deferred asset by posting:

Debit 68 subaccount “Calculations for income tax” Credit 09
– 836 rub. (RUB 4,178 ? 20%) – the deferred tax asset is written off.

Income tax: depreciation

When carrying out reconstruction with a period of no more than 12 months, continue to accrue depreciation on the fixed asset. If the reconstruction of a fixed asset takes more than 12 months, then suspend depreciation on it. In this case, stop accruing depreciation from the 1st day of the month following the month in which the fixed asset was transferred for reconstruction. Resume depreciation calculations from the next month after the completion of reconstruction. This procedure is established in paragraph 3 of Article 256, paragraphs of Article 259.1 and paragraphs of Article 259.2 Tax Code RF.

After reconstruction (regardless of its duration), the useful life of the fixed asset can be increased. This is possible if, after reconstruction, the characteristics of the fixed asset have changed in such a way that this will allow it to be used longer than previously deadline. At the same time, it is possible to increase the useful life within the depreciation group to which the fixed asset belongs. That is, if the maximum useful life was initially set, it cannot be increased after reconstruction of the fixed asset. Such rules are established in paragraph 1 sub. 3 p. 1 art. 146 of the Tax Code of the Russian Federation (paragraph 1, clause 5, article 172 of the Tax Code of the Russian Federation).* That is, after the specified materials (work, services) are registered and in the presence of an invoice (clause 1 of article 172 of the Tax Code of the Russian Federation). The exception to this rule is when:

• the organization enjoys VAT exemption;
• the organization uses the fixed asset only to perform VAT-free transactions.

In these cases input VAT take into account the cost of materials (work, services) used during the reconstruction. This procedure follows from paragraph 2 of Article 170 of the Tax Code of the Russian Federation.

When an organization uses a fixed asset to perform both taxable and non-VAT-taxable operations, distribute the input tax on the cost of materials (work, services) used during reconstruction (clause 4 of Article 170 of the Tax Code of the Russian Federation).

If, after reconstruction of a property, an organization begins to use it in operations not subject to VAT, it is obliged to restore the input tax previously accepted for deduction:

• at the cost of construction and installation work;
• for goods (works, services) purchased to perform construction and installation work during reconstruction.

Property tax

When calculating property tax, the costs of reconstruction included in the cost of a fixed asset should be taken into account from the 1st day of the month following its end (clause 4 of Article 376 of the Tax Code of the Russian Federation). Learn more about how to calculate this tax, see How to calculate property taxes.

Sergey Razgulin,

Actual State Councilor of the Russian Federation, 3rd class

Sincerely,

Nina Maksimova, expert of the BSS "System Glavbukh".

Answer approved by Svetlana Chuprikova,

Chief Hotline BSS "System Glavbukh".

Every construction company has one, and over time they also need, like all other organizations. Distinguish the two concepts related to object restoration, in practice it can be quite difficult even for construction companies themselves. Meanwhile, it is their correct differentiation that determines whether the corresponding expenses are included in current costs at a time or whether they increase the cost of the fixed asset and will be recognized in current expenses only through depreciation.

What is reconstruction and repair? Distinctive features of these concepts

First, let's define the concepts.

Both repair and reconstruction are types of restoration of fixed assets (clause 26 of the Accounting Regulations “Accounting for Fixed Assets” PBU 6/01, approved by Order of the Ministry of Finance of Russia dated March 30, 2001 N 26n).

But neither accounting nor tax legislation explains what “repair of fixed assets” is. Therefore, to properly qualify repair work, we will turn to other areas of law.

Under repair costs(current, medium and capital) refers to the cost of work to maintain fixed assets (their individual parts and structures) in working order during their useful life, which does not lead to an improvement in the initial standard performance indicators (paragraph 2 of clause 16 of the Letter of the State Statistics Committee of Russia dated 04/09/2001 N MS-1-23/1480, clause 3.1 of the Regulations on carrying out scheduled preventive repairs of industrial buildings and structures MDS 13-14.2000, approved by Resolution of the USSR State Construction Committee dated 12/29/1973 N 279, hereinafter referred to as Regulation N 279) .

As a rule, repair work is divided into two types: current repairs and major repairs.

Definitions of the terms “major repairs” and “current repairs” are given in the following documents (see Letters of the Ministry of Economic Development of Russia dated May 23, 2008 N D05-1994 and the Ministry of Finance of Russia dated November 23, 2006 N 03-03-04/1/794):

In Part 1 of Art. 4, part 1 art. 48 Town Planning Code Russian Federation;

In clause 3.8 of the Methodology for determining the cost of construction products on the territory of the Russian Federation MDS 81-35.2004, approved by Resolution of the State Construction Committee of 03/05/2004 N 15/1;

In paragraphs 3.4, 3.11 of the Regulations on carrying out scheduled preventive repairs of industrial buildings and structures MDS 13-14.2000, approved by Decree of the USSR State Construction Committee of December 29, 1973 N 279 (hereinafter referred to as Regulation N 279), as well as in Appendix 3 to Regulation N 279, containing the List of works that relate to routine repairs, in Appendix 8 to Regulation No. 279, containing the List of works that relate to major repairs;

In Departmental Construction Standards (VSN) N 58-88(r) “Regulations on the organization and implementation of reconstruction, repair and maintenance of buildings, public utility and social-cultural facilities”, approved by Order of the State Committee for Architecture under the USSR State Construction Committee dated November 23, 1988 N 312.

Under major repairs buildings and structures implies the replacement of worn-out structures and parts or their replacement with more durable and economical ones that improve the operational capabilities of the objects being repaired. The exception is cases of complete replacement of main structures, the service life of which is this object is the largest (stone and concrete foundations buildings, underground pipes, etc.). When carrying out major repairs, the structural and other characteristics of the reliability and safety of fixed assets are affected (Part 1, Article 4, Part 1, Article 48 of the Town Planning Code of the Russian Federation, Letter of the Ministry of Economic Development of Russia dated May 23, 2008 N D05-1994). It is not allowed, at the expense of funds allocated for major repairs, to incur costs for the superstructure of buildings and various extensions to existing buildings and structures, installation of new fences of the enterprise, as well as work caused by a change in the technological or service purpose of the building or structure, increased loads and other new qualities (clauses 3.12 - 3.14 of Regulations No. 279) (Table 1).

Table 1

Characteristics repair work	Types of repairs
	Maintenance	Major renovation
Periodicity works	More than once a year	Annually or once every some years
Repair objects works
Cars, equipment, transport facilities	Preventative adjustment of parts and mechanisms, their cleaning, lubrication and replacement individual parts and assemblies fixed assets	Complete disassembly of the unit, replacement or restoration all worn parts and components, repair of basic and other parts and assemblies, assembly, adjustment and unit testing
Building, buildings, structures engineering technical equipment	Preventive measures and elimination minor damage and parts malfunctions buildings, structures, engineering equipment, carried out for the purpose protection from premature wear	Replacement of worn out structures and parts or their change to more durable and economical, improving operational capabilities objects being repaired, for except in cases of complete replacement of main structures, service life of which in a given the object is the largest
External engineering communications and objects improvement	Prevention work external wear engineering communications And improvement objects, as well as work on eliminating minor damage and such malfunctions objects	Repair of water supply networks, sewerage, heat and gas supply and power supply, landscaping courtyard areas, repairs paths, driveways and sidewalks, etc.

Repair work includes, in particular:

Replacement (installation) of windows, doors (gates) in order to restore the performance indicators (quality of use) of fixed assets;

Replacement (repair) of heating system elements, water supply systems, sewerage systems, sewage systems, lighting (including radiators, faucets, sinks, toilets, lamps and other objects that are not separate inventory items), included in the cost of the building;

Replacement (repair) of floor coverings, walls, ceilings (including their painting, installation of a suspended ceiling), other finishing works.

The purpose of any repair is to eliminate faults (replace worn or broken parts or structures), the presence of which makes the operation of the fixed asset impossible or dangerous. Moreover, damaged parts (structures) can be replaced with more durable and economical ones. Repair work is aimed at maintaining or restoring the original performance qualities of both equipment, buildings and structures as a whole, and their individual parts (structures). The main thing is that as a result of any repair, the purpose of the fixed asset object, its technical and economic indicators, technological or service purpose do not change, product quality does not improve, and production space does not increase.

Note! A different, more detailed classification of repairs that exists in certain sectors of the economy for some fixed assets (lifting repairs, medium repairs, etc.) should relate to one or another type of repair according to a single classification according to next sign: with a repair frequency of up to one year - to the current one; if the repair frequency is more than one year - to capital (paragraph 4, clause 3.3 of Regulation No. 279). At the same time, we note that the division of repairs into types is conditional and is due to the fact that previously the costs of current and major repairs were covered from different sources of financing.

In its turn, reconstruction of capital construction projects is a complex construction work and organizational and technical measures related to changes in the basic technical economic indicators capital construction project (number and area of ​​premises, construction volume and total area building, capacity or throughput or its purpose) in order to improve the quality of service, increase the volume of services (Appendix 1 to Departmental Construction Standards VSN 58-88 (r) "Regulations on the organization and conduct of reconstruction, repair and maintenance of buildings, public utilities and social and cultural purposes", approved by the Order of the State Committee for Architecture of the Russian Federation under the State Construction Committee of the USSR dated November 23, 1988).

Reconstruction changes in the parameters of capital construction projects, their parts (height, number of floors, area, production capacity indicators, volume) and the quality of engineering and technical support are recognized (clause 14 of article 1 of the Urban Planning Code of the Russian Federation, Letter of the Ministry of Economic Development of Russia dated June 23, 2010 N D23 -2287). The concept of “reconstruction” contained in Part 1 of Art. 754 of the Civil Code of the Russian Federation (Civil Code of the Russian Federation), includes renovation, reconstruction, restoration of a building or structure.

The concept of “reconstruction” is also explained in Letter of the USSR Ministry of Finance dated May 29, 1984 N 80 “On the definition of the concepts of new construction, expansion, reconstruction and technical re-equipment of existing enterprises”, Methodology for determining the cost of construction products on the territory of the Russian Federation MDS 81-35.2004, approved by the Resolution of the State Construction Committee Russia dated 03/05/2004 N 15/1, Letter of the USSR State Planning Committee N NB-36-D, USSR State Construction Committee N 23-D, USSR Stroybank N 144, USSR Central Statistical Office N 6-14 dated 05/08/1984 “On the definition of the concepts of new construction, expansion , reconstruction and technical re-equipment of existing enterprises."

For the purposes of applying Sec. 25 of the Tax Code of the Russian Federation (TC RF), reconstruction is the reconstruction of existing fixed assets associated with improving production and increasing its technical and economic indicators, carried out under a reconstruction project to increase production capacity, improve quality and change the range of products (paragraph 3 p. 2 Article 257 of the Tax Code of the Russian Federation).

During the reconstruction of buildings and structures (in addition to the work performed during major repairs), reconstruction, redevelopment, refurbishment work, including:

Changing the layout of premises;

Changes in overall dimensions and technical characteristics of a capital construction project;

Construction of superstructures, extensions, outbuildings, and, if necessary justification is available, their partial dismantling;

Increasing the level of engineering equipment, including the reconstruction of external networks (except the main ones);

Replacement of worn-out and obsolete structures and engineering equipment with modern, more reliable and efficient ones that improve the operational performance of buildings, structures, or complete replacement everyone engineering systems and communications;

Dismantling and strengthening of load-bearing structures;

Improving the architectural expressiveness of buildings (objects), as well as landscaping the surrounding areas (Table 2).

table 2

Features repair and reconstruction
Signs		Reconstruction
Purpose of work	Trouble-shooting (recovery performance) fixed assets. Elimination of physical and obsolescence, not associated with change basic technical economic indicators	Renewal and reconstruction object of fixed assets, its parts
Result of work	Maintaining technical economic and operational indicators (term beneficial use, power, quality applications, quantity and premises area, bandwidth and etc.) initially provided level. Lack of new qualities object compared to original condition	Improvement (promotion) originally adopted standard indicators functioning of the facility fixed assets (increase useful life use, increase power, etc.)
Cost of work	Not a criterion for differentiation (Letter from the Ministry of Finance Russia dated March 24, 2010 N 03-03-06/4/29)
Duration works	Not a criterion for delimitation
	It is not a criterion for differentiation (FAS Resolution Volga-Vyatka District dated 02/01/2010 on the case N A17-5953/2008)

Thus, when distinguishing between the reconstruction and repair of fixed assets, the change in technical and economic indicators, as well as the change in the technological or service purpose of the fixed asset object or its acquisition of other, new qualities, are of decisive importance. Moreover, neither the cost of the work, nor its duration, nor the reference in the development agreement project documentation are not a criterion for distinguishing these concepts.

Example 1 . Stroykom LLC replaced the truck crane cabin on a KamAZ base chassis with a high ceiling with a serial cabin with a sleeping bag, purchased from the manufacturer in order to restore the lost original technical characteristics of the truck crane cabin.

Such replacement of a cabin on a truck crane does not constitute completion, retrofitting, reconstruction, modernization, or technical re-equipment in accordance with clause 2 of Art. 257 of the Tax Code of the Russian Federation, since it does not change the technological or service purpose of the truck crane and does not endow it with other, new qualities. Therefore, the work carried out by Stroykom LLC should be qualified as a major overhaul.

Example 2 . Stroykom LLC replaced the cabin of a domestic truck crane on a basic KamAZ chassis with a high ceiling with a modernized imported cabin with a sleeping bag. The new cabin (unlike the previous one) has:

Built-in steel underrun protection under the bumper in case of a frontal collision with a passenger car;

Huge storage compartment hatch;

Multifunctional steering wheel with on-board computer control keys on the front side;

Fairings that are attached to the cab and can significantly reduce fuel consumption due to a decrease in the drag coefficient of the truck crane.

Such a replacement of the truck crane cabin should be qualified as reconstruction.

Documentation of repairs

Given that the definition of repair in tax legislation no, the absence of this concept in practice often leads to disputes with tax authorities. Therefore, the presence of correctly executed documents confirming the need and the very fact of carrying out repair work will provide documentary evidence, economically correct qualification of such costs and, as a result, will protect the organization from possible claims of inspectors (clause 1 of article 252, article 313 of the Tax Code of the Russian Federation, p. Clauses 1, 2, Article 9 Federal Law dated November 21, 1996 N 129-FZ “On Accounting” (hereinafter referred to as the Law on Accounting)).

First of all, it is best to confirm the need for repair work defective statement. In fairness, we note that Ch. 25 of the Tax Code of the Russian Federation does not require its preparation, and for accounting purposes, a defective statement is required only when creating a reserve for the repair of fixed assets (clause 69 of the Guidelines for accounting of fixed assets, approved by Order of the Ministry of Finance of Russia dated October 13, 2003 N 91n). Nevertheless, this document is needed to confirm the presence of faults and damage to the fixed assets that require elimination before starting repair work, to justify their necessity and to prove the correct qualification of such work as repair (and not reconstruction). Its absence, by the way, is a very common argument of the tax authorities not to accept expenses for the repair of fixed assets.

There is no unified form of the defective statement, therefore it is compiled according to a form developed and approved by the organization independently, taking into account the requirements of Art. 9 of the Accounting Law. Can be used as a basis in case of equipment repair Form N OS-16 "Report on identified equipment defects", approved by Resolution of the State Statistics Committee of Russia dated January 21, 2003 N 7. If complex and expensive repairs are required to draw up this document, it is advisable to create a commission by appropriate order from the head, including all the necessary specialists, including technical ones.

The presence of a defective statement or an expert’s opinion on deficiencies that need to be eliminated makes it possible, if necessary, to more likely prove the legality of attributing the costs incurred to repair expenses (see Resolutions of the Presidium of the Supreme Arbitration Court of the Russian Federation dated 08.17.1999 N 1965/99, FAS Far Eastern District dated 24.05 .2010 N F03-3353/2010 in case N A37-2221/2009, FAS Volga District dated 09/21/2009 in case N A55-20239/2008, FAS Ural District dated 11/28/2006 N F09-10509/06-C7 in case N A47-17401/05, FAS of the West Siberian District dated 05.10.2005 in case N F04-6994/2005(15567-A46-33)) (see below).

Defective statement

N 1 from 01/17/2011

Name of the fixed asset object: facade of the office building of Stroyinvest LLC

Location of fixed assets: Moscow, st. Zhemchuzhnaya, 25

During the inspection of the facade of the office building of Stroyinvest LLC, the following defects and damage were identified that required major repairs:

N p/p	Identified defects and damage	Volume defects and damage	Essential for Plastering fixes and painting works	Elimination time frame
	Cracks and damage plaster outdoor rectilinear slopes on stone and concrete	50 sq. m	Plaster repair external rectilinear slopes on stone and concrete cement- lime mortar from the land and forests	I quarter 2011
			Acrylic painting paint slopes with primer	I quarter 2011
	Cracks plasters and facade paints building	780 sq. m	Grinding plaster facade with clearing old paint	I quarter 2011
		570 sq. m	Plaster repair smooth building facade on stone and concrete with land and forests cement-lime solution area individual places up to 5 sq. m layer thickness up to 30 mm	I quarter 2011
		210 sq. m	Plaster repair smooth building facade on stone and concrete with land and forests cement-lime solution area individual places up to 5 sq. m layer thickness up to 20 mm	I quarter 2011
		780 sq. m	Wall putty	I quarter 2011
		780 sq. m	Acrylic painting building facade paints	I quarter 2011
	Concrete cracks cornice slabs	2.5 cu. m	Recovery protective layer of concrete cornice slabs	I quarter 2011
	Damage foundation and window sills low tides, wall gutters	870 linear m	Replacement of foundation and window sills, wall gutters on galvanized metal with color coating (plastisol)	I quarter 2011

Head of the administrative and economic department Panov V.A. Panov

Chief engineer Vasilyev V.V. Vasiliev

Technician Ignatiev S.Yu. Ignatiev

Next required document- this is separate manager's order to carry out repairs, in which it is necessary to indicate the performers of repair work - on their own (in-house) or with the involvement of third-party organizations (contract); composition of the commission for organizing repairs and acceptance from repairs; timing of repairs; responsible persons for preparing the facility for repairs, for organizing and carrying out repairs, for implementing safety measures during repair work, for starting up the facility after repairs (see below).

Society with limited liability"Stroyinvest"

Order

About carrying out repair work

facade of the building of Stroyinvest LLC

Due to the need to repair the façade of the building

(defective statement No. 1 dated January 17, 2011)

I order:

1. Approve a commission for organizing and carrying out repair work consisting of:

Chairman of the commission - head of the administrative and economic department V.A. Panov;

members of the commission - chief engineer V.V. Vasiliev;

- safety engineer N.M. Sviridov;

- technician S.Yu. Ignatiev.

2. Carry out a major overhaul of the building's facade using an economic method.

3. The commission specified in clause 1 of this Order, when preparing and carrying out major repairs, carry out the following work:

- review, agree on and submit to me for approval the necessary design and estimate documentation by January 28;

- ensure compliance with safety regulations and fire safety when carrying out repair work on the facade of the building in accordance with established requirements.

4. Responsibility for ensuring general safety during repair work on the facade of the building should be assigned to safety engineer N.M. Sviridova.

5. The HR manager should familiarize all employees of Stroyinvest LLC with this Order as it relates to them.

6. I reserve control over the implementation of this Order.

General Director Sokolov A.G. Sokolov

When carrying out contract repairs, it is necessary to conclude contract for repair work t and approve design and estimate documentation.

When carrying out repairs in an economic way, the following documents are needed: repair cost estimate, repair plan and schedule, where it is necessary to provide the name of the objects being repaired, a detailed list and scope of work (by type), a list and quantity of materials required for repairs, invoice for internal movement of fixed assets (according to Form N OS-2), invoices and invoices from suppliers of materials used for repairs, invoices for the release of materials for repairs, limit cards, invoice requirements for the transfer of material assets, settlement payslips to pay wages to workers who carried out repairs, accounting certificates etc.

After completion of the repair (regardless of whether it was carried out by contract or in an economic way), you need to draw up an act in form N OS-3 "Act of acceptance and delivery of repaired, reconstructed, modernized fixed assets" approved by Resolution of the State Statistics Committee of Russia dated January 21, 2003 N 7, which reflects the types of repair work and their cost.

Data on the work performed should be reflected in section. 6 "Repair costs" inventory card accounting for fixed assets according to Form N OS-6, approved by Resolution of the State Statistics Committee of Russia dated January 21, 2003 N 7.

In all documents confirming the preparation, organization and implementation of repairs (regardless of the method of its implementation - contract or business), it is necessary to use the same wording, which makes it possible to unambiguously qualify the work performed as repair work. Therefore, the term “reconstruction” may not be used or referred to in such documents. In case of a conflict with the tax authorities, this may be useful in proving the actual content of the data business transactions. For the same reason, repair work performed cannot be documented using unified forms N KS-2 “Acceptance Certificate of Work Completed” and N KS-3 “Certificate of the Cost of Work Performed and Expenses”, since they are used when performing work on the reconstruction of fixed assets ( see table 3).

Table 3

repair work
Types of documents	Purpose of registration document	Document form	Necessary information
Defective statement	1. Confirmation availability malfunctions, damage OS object. 2. Rationale necessity carrying out repair. 3. Proof what were they namely repair ones work	free form, developed and approved organization in one of applications to accounting accounting policy (during repair equipment - based form N OS-16)	1. All requiring elimination malfunctions and damage main object funds within upcoming repair work. 2. Events for their elimination. 3. Everything mandatory requisites, specified in clause 2 Art. 9 of the Law on accounting accounting
Order to carry out repairs	Making a decision about holding and character repair work, their organizations	free form	1. Composition commission on preparation, organizations and carrying out repair. 2. Performers repair work. 3. Timing carrying out repairs
Contract method
Work agreement, design and estimate documentation	Decor relations with contractor for carrying out repairs	Form, agreed upon parties agreement	1. Contract price contract, her structure, including compensation costs contractor and due to him reward. 2. List volumes of work (according to types of work) and materials for repairs
Economic method
Cost estimate for repair. Plan and schedule carrying out repairs. Invoices for internal moving main facilities funds, accounts, waybills, limit-fence cards, requirements- invoices, settlement and payment statements, accounting certificates, etc.	Decor carrying out repairs own forces	Free or unified form (in established cases)	1. Names being repaired objects. 2. Detailed list and volumes works (according to them species). 3. Detailed list and quantity materials, necessary for repair. 4. Certificates and calculations
Regardless of the method of repair
Acceptance certificate renovated, reconstructed, modernized main facilities funds	Decor results performing repairs	Form N OS-3	Types of work and their price
Inventory account card main object funds	Specifying information about the completed repairs	Form N OS-6	Information about carried out repairs

Documentation of reconstruction

Documentary evidence of the organization and implementation of reconstruction are the following: documentation:

Order from the manager to carry out reconstruction;

Work acceptance certificate in any form, drawn up for all types of contract work, except construction and installation, in compliance with the requirements of clause 2 of Art. 9 of the Law on Accounting - during reconstruction of equipment;

Certificate of acceptance of work performed (Form N KS-2) and a certificate of the cost of work performed and expenses (Form N KS-3) - when reconstructing real estate by contract;

Certificate of acceptance and delivery of repaired, reconstructed, modernized fixed assets (Form N OS-3), approved by the head of the organization and confirming the completion of all reconstruction work (regardless of the method of performing such work, and also regardless of the type of reconstructed object - movable or immovable property). The date of this document is the date of change in the initial cost of the fixed asset as a result of reconstruction, used for the subsequent calculation of depreciation on the reconstructed object (Letter of the Ministry of Finance of Russia dated August 17, 2009 N 03-03-05/157);

Filling out section 5 “Change in the initial cost of a fixed asset item” of the inventory card for recording a fixed asset item (Form N OS-6).

Note! In case of reconstruction, as a rule, a defective statement is not drawn up, since reconstruction is not associated with eliminating the malfunction of a fixed asset object, but with improving its technical and economic indicators (see Table 4).

Table 4

A package of documents confirming the need and fact of carrying out reconstruction
Types of documents	Purpose of registration document	Form document	Necessary information
Order to carry out reconstruction	Decor decisions on carrying out reconstruction	free form	1. Composition of the commission on preparation, organizations and carrying out reconstruction. 2. Performers work on reconstruction. 3. Dates reconstruction
Contract method
Work agreement, design and estimate documentation	Decor relations with contractor for carrying out reconstruction	Form, agreed upon parties agreement	1. Contract price contract, her structure, including compensation contractor costs and what is due to him reward.) 2. List of volumes works (by type works) and materials for reconstruction
Acceptance certificate executed works	Decor acceptance completed construction and installation work contractors. Confirmation fact of fulfillment works	Form N KS-2	Volume of completed contract construction and installation works (in breakdown of positions by estimate) indicating quantities, prices for unit and cost each type of work.
Certificate of cost completed work and costs	Decor settlements between contractor and by the customer for completed work on reconstruction	Form N KS-3	Price executed works and costs by their types (from the beginning carrying out work, with beginning of the year and beyond reporting period)
Cost estimate for reconstruction object. Plan and schedule reconstruction. Invoices for internal moving objects fixed assets, invoices, goods invoices, limit- fence cards, requirements- invoices, settlement pay slips, accounting certificates, etc.	Decor carrying out reconstruction own forces	free or unified form (in established cases)	1. Names reconstructed objects. 2. Detailed list and volumes works (according to them species). 3. Detailed list and quantity materials, necessary for reconstruction. 4. Certificates and calculations
Regardless of the method of reconstruction
Acceptance certificate renovated, reconstructed, modernized main facilities funds	Decor results execution reconstruction	Form N OS-3	Types of work and their price
Inventory card object accounting fixed assets	Note information about carried out reconstruction	Form N OS-6	Information about carried out reconstruction

Reflection of repair costs in accounting and tax accounting

Repair costs are recognized in accounting and tax accounting in two ways(depending on the adopted accounting policy):

the first method is a lump sum in the full amount of actual costs as the work is completed;

the second method is evenly by creating a reserve of expenses for repairs of fixed assets.

Grounds - clause 27 of PBU 6/01, clause 72 of the Regulations on accounting and financial statements in the Russian Federation, approved by Order of the Ministry of Finance of Russia dated July 29, 1998 N 34n, paragraphs 67, 59 of the Guidelines for accounting of fixed assets approved by Order of the Ministry of Finance of Russia dated October 13, 2003 N 91n; pp. 2 p. 1 art. 253, Art. 260, paragraph 5 of Art. 272, art. 324 Tax Code of the Russian Federation.

In the first method, repair costs in accounting are expenses for ordinary activities, provided that the fixed asset is used in the process of production of products, goods, works, services (clauses 5, 7 of the Accounting Regulations “Expenses of the Organization” PBU 10 /99, approved by Order of the Ministry of Finance of Russia dated May 6, 1999 N 33n) and are recognized in the reporting period in which they occurred, regardless of the time of actual payment Money and other forms of implementation (clauses 7, 18 PBU 10/99). In tax accounting, such expenses are classified as other expenses associated with production and sales, and are recognized in the reporting (tax) period in which they were incurred in the amount of actual costs (clause 2, clause 1, article 253, clause 1 Article 260, paragraph 5 of Article 272 of the Tax Code of the Russian Federation).

When performing any type of repair of a fixed asset object using our own resources (auxiliary production), the costs incurred are preliminarily collected in account 23 “Auxiliary production” and, upon completion of the repair, are written off to the debit of accounts 20 “Main production”, 25 “General production expenses”, 26 “General expenses” , 44 “Sale expenses”, etc. Grounds: Instructions for the use of the Chart of Accounts for accounting the financial and economic activities of organizations, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n, clause 16 of the Accounting Regulations “Organization Expenses” PBU 10/ 99, approved by Order of the Ministry of Finance of Russia dated 05/06/1999 N 33n.

Expenses for major repairs of a fixed asset item, collected on account 23, can be written off to the debit of account 97 “Deferred expenses”, followed by an even write-off to the debit of the account for accounting for production costs during the period, established by the organization(clause 65 of the Regulations on accounting and financial reporting in the Russian Federation, approved by Order of the Ministry of Finance of Russia dated July 29, 1998 N 34n, Instructions for the use of the Chart of Accounts).

When creating a reserve for repair costs of fixed assets, production costs (sales costs) include the amount of deductions calculated on the basis of the annual estimated cost repairs (clause 69 of the Guidelines for accounting of fixed assets). According to para. 4 clause 69 of the Methodological Guidelines for Accounting of Fixed Assets and Instructions for the Application of the Chart of Accounts for Accounting Financial and Economic Activities of Organizations The organization reflects monthly contributions to the reserve in the debit of the production cost account (account 20 “Main production”, 25, etc.) in correspondence with the credit of account 96 “Reserves” upcoming expenses". As repair work is carried out, the actual costs associated with their implementation, regardless of the method of their implementation (economic or contractual), are written off to the debit of account 96 in correspondence with the credit of the account in which the specified costs are previously taken into account (for example, 23) (para. 5 clause 69 of the Guidelines for accounting of fixed assets).

In tax accounting, deductions to the reserve for repairs are calculated based on the total cost of fixed assets and deduction standards approved by the organization independently in its tax accounting policy (paragraph 1, clause 2, article 324 of the Tax Code of the Russian Federation). In this case, the total cost of fixed assets is determined as the sum of the original cost of all depreciable fixed assets put into operation at the beginning tax period, in which a reserve is created (paragraph 2, clause 2, article 324 of the Tax Code of the Russian Federation). Limit amount reserve cannot exceed average value actual expenses for repairs that have developed over the past three years. Deductions to the reserve for future expenses for the repair of fixed assets during the tax period are written off as expenses in equal shares on the last day of the corresponding reporting (tax) period (paragraph 4, paragraph 2, article 324, paragraph 3, article 260 of the Tax Code of the Russian Federation). In this case, the amount of actually incurred costs for repairs is written off from the funds of the above reserve (paragraph 5, paragraph 2, article 324 of the Tax Code of the Russian Federation).

Note! If the source of financing for the repairs carried out by the organization is net profit, such costs cannot be taken into account for profit tax purposes in accordance with paragraph 1 of Art. 270 of the Tax Code of the Russian Federation (Letter of the Ministry of Finance of Russia dated April 27, 2006 N 03-03-04/1/406).

Most organizations in practice use the first method of recognizing such costs, and their reservation is much less common.

In order to organize control over the timely receipt of fixed assets from repair, it is recommended that inventory cards for these objects in the file cabinet be rearranged into the group “Fixed assets under repair”. When an item of fixed assets is received from repair, the inventory card is moved accordingly (clause 68 of the Guidelines for accounting of fixed assets).

Example 3 . Stroystandart LLC has a DEPO Storm 1310NT server with an initial configuration, in which the server’s hard drive (disk array 1 x 250GB SATA hard drive (7200rpm) failed. The reasons for the failure were a breakdown of the read head, a violation of the integrity of the file system on the hard drive. As a result the work of the construction company was paralyzed - the Internet, local network, e-mail did not work, important files stored on the server were lost.

Server in use construction company for computer-aided design of buildings and structures.

The IT department decided to repair the server on its own by replacing the faulty disk array with exactly the same new disk array 1 x 250GB SATA hard drive (7200rpm) costing 3,540 rubles, including VAT - 540 rubles.

Replacing the disk array did not lead to a change in the technical characteristics of the server.

According to the accounting and tax accounting policies of Stroystandart LLC, expenses for the repair of fixed assets are taken into account at a time in the full amount of actual costs as the work is completed (without creating a reserve).

Debit 10-5 Credit 60

3000 rub. - reflects the cost of the disk array purchased for server repair on the basis of the supplier’s invoice;

Debit 19 Credit 60

540 rub. - the amount of VAT presented by the supplier based on the invoice is taken into account;

Debit 68-VAT Credit 19

540 rub. - the submitted VAT amount based on the invoice is accepted for deduction;

Debit 23 Credit 10-5

3000 rub. - the costs of repairing the server are reflected on the basis of the invoice request (Form N M-11);

Debit 26 Credit 23

3000 rub. - written off repair costs included general expenses on the basis of the act of acceptance and delivery of repaired, reconstructed, modernized fixed assets (form N OS-3).

In tax accounting, the cost of server repair is 3,000 rubles. were taken into account as part of other expenses in the period of their implementation.

Reflection of reconstruction costs in accounting and tax accounting

For accounting and tax accounting purposes, costs for the reconstruction of objects increase the initial cost of fixed assets and are written off through depreciation (clause 2 of Article 257 of the Tax Code of the Russian Federation, clauses 14, 20, 27 PBU 6/01, clause 42 of the Guidelines for accounting accounting of fixed assets).

Accounting for the costs of reconstruction of fixed assets is carried out on account 08 “Investments in non-current assets” (clauses 42, 70 of the Guidelines for accounting of fixed assets, Instructions for using the Chart of Accounts). Upon completion of the reconstruction work (as of the date of approval of the acceptance certificate for repaired, reconstructed, modernized fixed assets in Form N OS-3), the costs recorded on account 08 are written off to the debit of account 01 “Fixed Assets”.

If the period of reconstruction work lasts more than 12 months, then in accounting and tax accounting the accrual of depreciation on the reconstructed object is suspended for the entire period of such work (clause 23 PBU 6/01, clause 63 of the Guidelines for accounting of fixed assets, p. 3 Article 256 of the Tax Code of the Russian Federation).

When reconstructing a fixed asset, the organization has the right to revise the useful life of the reconstructed object (paragraph 6, paragraph 20 of PBU 6/01, paragraph 60 of the Methodological Guidelines for Accounting for Fixed Assets, paragraph 2, paragraph 1, Article 258 of the Tax Code of the Russian Federation). At the same time, in tax accounting, an increase in the useful life can be carried out only within the time limits established for the depreciation group in which this fixed asset was previously included (paragraph 2, clause 1, article 258 of the Tax Code of the Russian Federation). If, as a result of reconstruction, the useful life of an object does not increase, then when calculating depreciation, the remaining useful life is taken into account (paragraph 3, clause 1, article 258 of the Tax Code of the Russian Federation).

The useful life can be increased on the basis of an order from the head of the organization or a written opinion from the relevant technical specialists.

In tax accounting, depreciation is calculated based on the original cost of a fixed asset, increased by the costs of its reconstruction (Letters of the Ministry of Finance of Russia dated 03/29/2010 N 03-03-06/1/202, dated 02/06/2007 N 03-03-06/4/ 10, Letter of the Federal Tax Service of Russia dated March 14, 2005 N 02-1-07/23).

Features of calculating depreciation for a reconstructed object when using the linear method (method) will be as follows (see Table 5).

Table 5

Rules for calculating depreciation for a reconstructed object with linear way (method)
	Required data	Accounting	Tax accounting
	Revision of the deadline useful after use reconstruction	Under revision	Has the right to increase (if this is necessary), but within the period of that depreciation group, which I was previously in included object
	Price reconstructed object for accruals depreciation	Residual value object to reconstruction, increased by reconstruction cost	Initial cost object to reconstruction, increased by cost reconstruction
	Useful life use (months):
	Does not change	Initial term reduced by period use before reconstruction	Initial term
	Increases	Initial term reduced by period use before reconstruction, plus extension of time after reconstruction	Initial term plus extension of time after reconstruction (but in within the established depreciation group)
	Monthly amount depreciation by reconstructed object
	The deadline does not change	page 2: page 3.1	page 2: page 3.1
	The term increases	page 2: page 3.2	page 2: page 3.2

The amount of depreciation for the reconstructed facility will be accrued from the first day of the month following the month of completion of all reconstruction work (clause 21 of PBU 6/01, clause 4 of Article 259 of the Tax Code of the Russian Federation), for the remaining useful life of this facility.

Example 4 . Let's use the conditions of example 3.

Due to the failure of the 1 x 250GB SATA hard drive (7200rpm) disk array, the IT department decided not to repair, but to reconstruct the DEPO Storm 1310NT server, since the initial configuration of this server did not provide a fault-tolerant array of hard drives (RAID). RAID technology allows you to increase server fault tolerance by using a redundant number of hard drives so that the failure of one of the hard drives does not lead to data loss and server failure.

In this regard, the IT department proposes to double the performance, RAM, hard drive size and server fault tolerance. Consequently, such work will lead to an improvement in the technical characteristics of the server and can be considered a reconstruction.

Name	Initial configuration	Reconstruction
CPU	Intel(r) Core(tm) i3 Processor 540 (2-Cores, 3.06GHz, 2.5 GT/s, 4Mb)	Intel(r) Xeon(r) Quad- Core Processor X3430 (2.4GHz, 2.5GT/s, 8MB)
RAM	2GB DDR3-1066 SDRAM ECC (2DIMM/4)	8GB DDR3-1066 SDRAM ECC (4DIMM/4)
Disk array	1 x 250GB SATA hard drive (7200rpm)	2 x 500GB SATA hard drive (7200rpm)

The cost of such reconstruction is 59,000 rubles, including VAT - 9,000 rubles.

The initial cost of the initial configuration server before its reconstruction was 60,000 rubles. (without VAT).

According to the accounting policy of Stroystandart LLC, depreciation in accounting and tax accounting for the server is calculated using the straight-line method. The server was assigned to the second depreciation group with a useful life of 30 months. The monthly depreciation amount before reconstruction was 1998 rubles. (RUB 60,000 x 3.33%).

The amount of depreciation accrued on the server in accounting and tax accounting for 10 months before its reconstruction amounted to 19,980 rubles.

The following entries were made in the accounting records of Stroystandart LLC:

January 2011

Debit 10-5 Credit 60

50,000 rub. - the cost of new components for server reconstruction is reflected on the basis of the supplier’s invoice;

Debit 19 Credit 60

9000 rub. - the amount of VAT presented by the supplier based on the invoice is taken into account;

Debit 68-VAT Credit 19

9000 rub. - the submitted VAT amount based on the invoice is accepted for deduction;

Debit 23 Credit 10-5

50,000 rub. - the costs of reconstructing the server are reflected on the basis of the invoice requirement (Form N M-11);

Debit 08 Credit 23

50,000 rub. - the costs of server reconstruction are taken into account as part of capital investments on the basis of an accounting certificate;

Debit 01-1 Credit 08

50,000 rub. - reconstruction costs are included in the initial cost of the server on the basis of the acceptance certificate for repaired, reconstructed, modernized fixed assets (Form N OS-3).

In tax accounting, work on server reconstruction is in the amount of 50,000 rubles. also increase the initial cost of this object.

In accordance with the order of the head of Stroystandart LLC and the conclusion of the IT department specialists, the useful life of the server has been increased by 6 months.

The amount of monthly depreciation of the server after its reconstruction will be the following values:

Data for calculation	Accounting	Tax accounting
Price rebuilt server to calculate depreciation (rub.)	90 020 (60 000 - 19 980 + 50 000)	110 000 (60 000 + 50 000)
New term useful using the server for depreciation calculation (months)	26 (30 - 10 + 6)	36 (30 + 6)
Monthly amount depreciation by to the reconstructed server (rub.)	3462,31 (90 020: 26)	3055,56 (110 000: 36)