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Repair of fixed assets - current and capital

in accounting (BU) and tax (NU) accounting can occur according to different rules. However, they have a lot in common. Let's take a look at these similarities and differences.

Repair of fixed assets - what is it?

Repair of fixed assets (OS) is a process related to both own and leased property. It is carried out in order to support or restore the operating system. The repair procedure consists of eliminating the malfunctions that have arisen, replacing worn parts or individual components of the object. Depending on the frequency and volume of work carried out, repairs can be:

  • current,
  • middle,
  • capital.

However, in no case should the repair process lead to a change in the main technical characteristics or purpose of the object being repaired, since such a change will already be regarded as modernization (reconstruction), which must be taken into account according to completely different rules (clause 2, article 257 of the Tax Code of the Russian Federation).

Carrying out repairs, unlike modernization (reconstruction), does not affect either the initial or the residual value of the object. All repair costs, whatever their size, are taken into account in the period of its completion. However, these costs are business case and documentary evidence (letters of the Ministry of Finance of the Russian Federation of March 24, 2010 No. 03-03-06/4/29, of February 25, 2009 No. 03-03-06/1/87).

Repair can be carried out:

  • attracted counterparty,
  • on their own,
  • mixed way.

Documentation of the repair

The repair is preceded by the preparation of:

  • a defective statement reflecting the condition of the object, which can be made in 1 copy if the repair is carried out on its own or in a mixed way, and is drawn up in 2 copies if the repair is done by a third-party counterparty;
  • estimates for repair work, compiled either by a third-party counterparty or by our own repair unit;
  • order of the head to carry out repairs, which reflects the deadlines repair work, the forces implementing it, and, if necessary, decisions to replace temporarily absent OS;
  • repair contracts, if it will be done by a third-party counterparty;
  • waybill for the internal movement of fixed assets, if the object is being repaired in its own division.

Upon completion of the repair work, draw up:

  • act of acceptance of the object from repair;
  • waybill for the internal movement of fixed assets, if the object was repaired in its own division;
  • a record of the repair made in the OS inventory card.

An example of the design of such a record, see the sample to the article. .

Reflection of repair in accounting

Accounting for the cost of repairing fixed assets in BU differs depending on how the repair work is carried out.

When they are carried out on their own (i.e., by one of the auxiliary departments), an order is opened for the performance of such work in the corresponding department, for which, during the entire time the repair is in progress, they collect the direct costs associated with it:

Dt 23 Ct 10, 69, 70.

If there is involvement of third-party contractors for part of the work (i.e., a mixed repair method), then account 60 will be added to the list of accounts reflected in this credit entry. In this case, a VAT allocation entry may arise if the services of a third-party counterparty are subject to this tax:

Dt 19 Kt 60.

Added to the total cost of the repair order are the overheads allocated at the end of each month for the support department that performs the repair:

Dt 23 Ct 25.

Upon completion of the repair, which will be recorded in the object acceptance certificate, the costs collected on account 23 for the corresponding order will be written off as overhead costs for the maintenance of the unit in which the repaired OS is used:

Dt 25 (26, 44) Kt 23.

When the repair is carried out only by the forces of a third-party counterparty, the costs for it will appear in accounting only on the date of signing the act of acceptance of the object from repair and will immediately be charged to overhead costs for the maintenance of the unit in which the OS that has been repaired is used, with the allocation of the VAT indicated in the documents :

Dt 25 (26, 44) Kt 60;

Dt 19 Kt 60.

Accounts 23 and 29 may also be present in the accounting for completed repair costs for both options (in-house or by third parties) in the list of debit accounts, if overhead costs for them are accounted for by the boiler method or on separate sub-accounts of these accounts. It is impossible to include the costs of fixed assets repair in direct costs, since objects are not involved in production during the repair.

According to the current accounting rules, a reserve for the repair of fixed assets in the BU is not created. Previously, this could be done, but since 2011 this possibility has been Guidelines for accounting of fixed assets, approved by order of the Ministry of Finance of the Russian Federation of October 13, 2003 No. 91n, is excluded (order of the Ministry of Finance of the Russian Federation of December 24, 2010 No. 186n).

Accounting for repairs in tax accounting

At NU accounting for the cost of repairing fixed assets possibly in 2 ways (Article 260 of the Tax Code of the Russian Federation):

  • In the same way as in the BU, i.e. by including costs in expenses in the period of completion of the repair (clause 1).
  • Through the creation of a reserve (clause 3). The amount of deductions to it is determined in a special manner, established by paragraph 2 of Art. 324 of the Tax Code of the Russian Federation. total amount the reserve is limited, but can be accumulated over several tax periods. If a reserve is created, then all repair costs are taken into account, attributing them to a decrease in this reserve. And only if its amount is exceeded, repair costs can be taken into account directly in the costs.

The decision to create or not create a reserve in NU must be fixed in accounting policy. If it is decided to create it, the algorithm for calculating the amount of the reserve and the period for which it is formed are also prescribed there.

Since the current accounting rules do not provide for the possibility of creating a reserve for the repair of fixed assets, differences will arise between the BU and NU data in terms of the reserve formed for NU purposes.

Results

OS repair consists in the implementation of measures aimed at maintaining the operability of fixed assets, but it should not lead to a change in the technical characteristics or purpose of the OS. Repair costs are taken into account in costs in the amount of actual amounts upon completion of repair work, regardless of whose forces the repair is carried out: their own or attracted. Be sure to document the need for repairs. It is permissible to create a reserve for repairs in NU, but this leads to differences between BU and NU.

Fixed assets tend to break. In order to keep them in working order, companies carry out repairs. In this article, you will learn how accounting for the repair of fixed assets is carried out.

The purpose of OS repair is to eliminate functional and technical breakdowns, to implement planned preventive measures that prevent premature failure, and also maintain the OS performance.

There are two types of OS repair - current and capital.

Maintenance involves the repair or replacement of individual worn-out parts of the OS, as well as the performance of work to maintain the repaired objects in working order. Such repairs are carried out by the company once a year.

The overhaul of vehicles and special equipment implies a complete disassembly of the facility, restoration of its body and base parts, restoration or replacement of worn parts with newer ones, as well as assembly, adjustment and inspection of the facility.

Overhaul of buildings involves the replacement of worn-out structures with new, stronger structures that significantly increase the operational capabilities of buildings.

Repair methods

Repair of OS objects can be carried out by one of two methods - contract or economic.

The contract method means that all repair work will be carried out by a third party company.

The economic method involves the performance of repair work by the company itself.

Repair cost write-off methods

There are three methods for allocating costs by cap. repair at the cost of goods:

  1. The first method is used when the repair volumes are very small. It implies that the company has a repair group, the costs of which are reflected in the 23rd account. In the long term, these costs are written off as sales costs or production costs.
  2. The second method involves the creation of a reserve (fund for repairs). This reserve is formed every month. The funds are credited to account 96, sub-account "reserve of costs for OS repair".
  3. The third method is used when the recovery of the OS is uneven, and no reserve is formed. It involves writing off repair costs to the debit of account 97. In turn, from this account, the costs are equally written off to the accounts of production costs or sales costs. In order to allocate the costs of restoring the fixed assets as part of the costs of the upcoming periods, you will need to open a subaccount for account 97.

Typical postings for accounting for OS recovery

Accounting for the repair of fixed assets by the contract method is reflected in the following entries:

  • D20, 23, 25, 26, 44 - K60 - restoration costs are written off to the cost of goods;
  • D19 - K60 - VAT was separated from the price of work;
  • D68 - K19 - VAT was sent for deduction;
  • D60 - K51 - payment for services to contractors was made.

When repairing economic method the following entries are made in the accounting:

  • D23 - K10 - written off materials for the restoration of fixed assets;
  • D23 - K70 - payroll for employees carrying out repairs;
  • D23 - K69 - employees performing OS restoration were charged insurance premiums;
  • D20 - K23 - the costs of restoring the fixed assets were written off to production costs.

If OS recovery is due to reserve fund, in accounting make postings:

  • D20, 23, 25, 26 - K96 - a reserve was formed to perform OS repair;
  • D96 - K10, 70, 60, 69 - the cost of repair work was written off from the reserve;
  • D96 - K91-1 - account 96 was closed at the end of the year.

Restoration of an object of fixed assets can be carried out through repair, modernization and reconstruction. This is stated in paragraph 26 of PBU 6/01 "Accounting for fixed assets". The costs of restoring an item of fixed assets are reflected in the accounting records of the reporting period to which they relate. At the same time, the costs for after their completion increase original cost of such an object, if as a result of modernization and reconstruction, the initially adopted normative indicators of its functioning are improved (increased) (term beneficial use, power, quality of application, etc.) (clause 27 PBU 6/01). Thus, the procedure for accounting for the costs of fixed assets repair, as well as modernization (reconstruction) is significantly different. The situation is similar in tax accounting. In accordance with paragraph 1 of Art. 260 of the Tax Code of the Russian Federation, expenses for the repair of fixed assets made by the taxpayer are considered as other expenses and are recognized for tax purposes in the reporting (tax) period in which they were incurred, in the amount of actual costs. And in cases of completion, additional equipment, reconstruction, modernization, technical re-equipment, it changes (clause 2, article 257 of the Tax Code of the Russian Federation). That is, the costs incurred in the listed cases are subject to write-off for tax purposes through the depreciation mechanism in accordance with Art. Art. 256 - 259 of the Tax Code of the Russian Federation. In other words, the concepts of "repair", "modernization" and "reconstruction" for the purposes of accounting and tax accounting unequal. So the taxpayer should Special attention to give classification of work on the restoration of fixed assets. Below we will give examples of arbitration practice, after reading which, the reader will understand how the problem of classifying the costs of restoring the OS ( overhaul or reconstruction (modernization)) is relevant at the present time. Moreover, the amounts that are disputed in the courtroom are often serious.

From the courtroom

Decree of the FAS VVO of 01.02.2010 N A17-5953 / 2008. In dispute with tax authority involved a food industry enterprise (JSC Myasokombinat Shuisky). According to the Federal Tax Service, the taxpayer incurred the costs of modernizing the fixed asset, which are not subject to a one-time inclusion in income tax expenses. The court, however, did not agree with the decision of the tax inspectorate. Of Case materials: on the basis of a contractor agreement ... the gas metering unit of the fixed asset was repaired - a double-drum water-tube boiler.This gas metering unit is not a separate item of fixed assets.At the same time, the fixed asset (double-drum water-tube boiler) had a gas metering unit before the work was carried out. The work on the repair of the gas metering unit did not change its functional purpose, as well as the purpose, quality (technical) characteristics of the fixed asset, there was no increase in the technical and economic indicators of the fixed asset.Thus, the court concluded that the taxpayer carried out work to repair the fixed asset, and not modernization or other measures provided for in paragraph 2 of Art. 257 of the Tax Code of the Russian Federation, changing the initial cost of the property. By the way, by the Determination of the Supreme Arbitration Court of the Russian Federation of June 10, 2010 N VAC-6995/10, it was refused to transfer this case to the Presidium of the Supreme Arbitration Court for review by way of supervision.
Decree of the FAS SKO dated May 27, 2009 N A53-10647 / 2008-C5-22. The tax inspectorate found that the company unlawfully included in the materials of the ventilation, air conditioning, heating, video surveillance systems, which are technological complexes total cost RUB 1,668,675, which should be included in fixed assets with depreciation charged over their service life. The court noted the following: the accounting unit of fixed assets is an inventory item. An inventory item of fixed assets is an object with all fixtures and fittings, or a separate structurally separate item designed to perform certain independent functions, or a separate complex of structurally articulated items that are a single whole, designed to perform a specific job (clause 6 PBU 6 / 01). Since the materials and equipment purchased by the society are not separate engineering systems, they cannot be qualified as independent items of fixed assets. The court recognized as legitimate the one-time write-off by the company as income tax expenses of the cost of ventilation, air conditioning, heating, video surveillance systems purchased for the overhaul of the building. A similar case was considered by the FAS ZSO (Decree of February 26, 2010 N A27-6662 / 2009).
Decree of the FAS SKO dated October 26, 2010 N A32-23439 / 2008-26 / 334. The dispute began because of the following situation: the company included in its income tax expenses the costs of retrofitting 29 cars with gas-balloon equipment. According to the tax inspectorate, equipping cars with the above equipment is a technical re-equipment, in connection with which the initial cost of cars should be increased, and the costs incurred should be written off by depreciation. But the court pointed out that when equipping a car with gas-balloon equipment, its technical and economic indicators do not change. Therefore, the costs incurred cannot be recognized as costs associated with technical re-equipment.
Continuing the topic of car repair, we present the Decree of the FAS MO dated September 14, 2009 N KA-A40 / 8093-09. The organization for the overhaul of the car purchased the cabin of a KamAZ-54105 car with a sleeping bag. The purpose of the overhaul is to restore the lost original technical characteristics of the car. According to the judges, the replacement of the cabin on a car cannot be a completion, additional equipment, reconstruction, modernization, technical re-equipment in the sense of paragraph 2 of Art. 257 of the Tax Code of the Russian Federation, since it does not change the technological or service purpose of the car and does not endow it with other new qualities. Replacing the cabin in a car also does not fall under the concept of reconstruction and reorganization of existing fixed assets, associated with the improvement of production and increasing its technical and economic indicators and carried out under the project for the reconstruction of fixed assets, in order to increase production capacity, improve quality and change the range of products. In addition, the cabin cannot be an object of fixed assets in accounting, since it does not meet the requirements of clause 4 of PBU 6/01, that is, it cannot be used in the production of products when performing work or providing services, or for the management needs of the organization. The result of the dispute - the cassation appeal of the tax inspectorate was left without satisfaction.
Decree of the FAS VSO dated 06/21/2007 N A33-15634 / 04-S3-F02-3458 / 07, A33-15634 / 04-S3-F02-3474 / 07. The court found that the work to install the equipment security system, speaker system and speaker system amplifier do not relate to the modernization of the car and are not subject to attribution to an increase in its initial cost, since they do not meet the signs of modernization established by paragraph 2 of Art. 257 of the Tax Code of the Russian Federation.
The article contains only a small part judgments, which were considered in Lately in the courts of various districts. In fairness, it should be noted that disputes with tax authorities do not always end in favor of the taxpayer. Example - Decree of the FAS VSO dated 16.07.2010 N A33-10451 / 2009. Trade company under a contract of sale real estate acquired a canteen building for 100 seats, which is confirmed by a certificate of state registration rights. CEO Society issued an order on the conservation of fixed assets and its overhaul. After the completion of the repair, the facility was put into operation. As the court established, as a result of the works performed by the society, the functional purpose premises (from the dining room to the shopping center), its area has increased, as a result of reconstruction (clause 14, article 1 of the Town Planning Code) new object real estate. Under such circumstances, the court came to the conclusion that the taxpayer's arguments about the implementation by him of a disputed fixed asset of capital repairs, and not reconstruction, are not supported by the materials in the case and contradict the provisions current legislation(Determination of the Supreme Arbitration Court of the Russian Federation dated 11.10.2010 N VAC-13567/10 refused to transfer this case to the Presidium of the Supreme Arbitration Court for review by way of supervision).

Let's define concepts

What does not suit the tax authorities? And what should be considered by the taxpayer who does not want to be in the courtroom?
The definition of the concept of repair in the regulatory documents on accounting and tax accounting cannot be found. However, tax code gives us definitions of the rest of the terms. So, in accordance with paragraph 2 of Art. 257:
- to building work, additional equipment, modernization includes works caused by a change in the technological or service purpose of equipment, a building, structure or other object of depreciable fixed assets, increased loads and (or) other new qualities;
- to reconstruction includes the reorganization of existing fixed assets associated with the improvement of production and an increase in its technical and economic indicators and carried out under the project for the reconstruction of fixed assets in order to increase production capacity, improve quality and change the range of products;
- to technical re-equipment includes a set of measures to improve the technical and economic performance of fixed assets or their individual parts based on the introduction of advanced equipment and technology, mechanization and automation of production, modernization and replacement of obsolete and worn-out equipment with new, more productive equipment.
Despite the presence of these definitions (or precisely because of them), as the reader has already seen, taxpayers and tax officials cannot find a common language. No wonder. In reality, modernization (reconstruction) work can be difficult to distinguish from major repairs. That is, there should be more significant and explicit criteria for classifying OS restoration work.
When defining the terms "overhaul" and "reconstruction", the Ministry of Finance back in 2006 recommended to be guided by the following documents (Letter dated November 23, 2006 N 03-03-04 / 1/794):
- Regulations on the scheduled preventive maintenance of industrial buildings and structures MDS 13-14.2000, approved by the Decree of the USSR Gosstroy of 12/29/1973 N 279;
- Departmental building standards (VSN) N 58-88 (R) "Regulations on the organization and implementation of the reconstruction, repair and maintenance of buildings, communal and socio-cultural facilities", approved by Order of the State Committee for Architecture under the Gosstroy of the USSR dated 11/23/1988 N 312;
- Letter of the Ministry of Finance of the USSR dated May 29, 1984 N 80 "On the definition of the concepts of new construction, expansion, reconstruction and technical re-equipment of existing enterprises."
In addition, for questions about classifying certain works as major repairs or reconstruction, the Ministry of Finance recommends contacting federal agency for construction and housing and communal services.
We note right away that these documents regulate the procedure for the repair and reconstruction of industrial buildings and structures, as well as existing enterprises.
So, in accordance with the documents mentioned above, the reconstruction of a building means a complex construction works and organizational and technical measures related to the change in the main technical and economic indicators (number and area of ​​apartments, building volume and total area building, capacity or throughput or its purpose) in order to improve living conditions, quality of service, increase the volume of services. When reconstructing buildings (objects), based on the prevailing urban planning conditions and current design standards, in addition to work performed during major repairs, the following can be carried out:
- changing the layout of the premises, erecting add-ons, built-ins, outbuildings, and if there are necessary justifications, their partial disassembly;
- raising the level of engineering equipment, including the reconstruction of external networks (except for the main ones);
- improving the architectural expressiveness of buildings (objects), as well as the improvement of adjacent territories. During the reconstruction of communal and socio-cultural facilities, expansion of existing and construction of new buildings and structures for auxiliary and service purposes, as well as the construction of buildings and structures of the main purpose included in the complex of the facility, to replace those being liquidated (clause 5.3 of the Order of the State Committee for Architecture under the Gosstroy of the USSR dated 11/23/1988 N 312).
At the same time, repair is understood as a set of works, the purpose of which is to protect the OS from premature wear, and, if necessary, to replace worn-out structures.

Repair types

Decree of the USSR Gosstroy of December 29, 1973 N 279 distinguishes two types of repair work in relation to buildings and structures of all sectors of the national economy (clause 3.3): current and capital.
Existing in certain industries more than detailed classification repairs (lifting repairs, medium repairs), the named document recommends referring to one or another type of repair according to next sign: with a repair interval of up to a year - to the current one; with a repair interval of more than a year - to the capital one.
For ongoing repairs industrial buildings and structures include work on the systematic and timely protection of parts of buildings and structures and engineering equipment from premature wear by taking preventive measures and eliminating minor damage and malfunctions. In other words, maintaining OS performance.
For overhaul industrial buildings and structures include such works in the course of which the worn-out structures and parts of buildings and structures are replaced or replaced with more durable and economical ones that improve the operational capabilities of the repaired facilities, with the exception of a complete change or replacement of the main structures, the service life of which in buildings and structures is the largest (stone and concrete foundations buildings and structures, all types of building walls, all types of wall frames, pipes of underground networks, bridge supports, etc.). In short, a major overhaul of a building is a repair in order to restore its resource with the replacement, if necessary, of structural elements and systems of engineering equipment, as well as to improve operational performance.
Appendices 3, 8 to Decree of the Gosstroy of the USSR N 279 provide a list of works on current and major repairs. Since disputes between taxpayers and tax office mainly arise in relation to the qualification of a major overhaul or reconstruction (modernization), we will give some excerpts from the document as an example. So, the overhaul of the building includes works in relation to:
- foundation - partial re-laying (up to 10%), as well as strengthening of stone foundations and basement walls, not associated with the superstructure of the building or additional loads from newly installed equipment;
- walls and columns - re-laying and repair of individual dilapidated sections of stone walls up to 20% of the total volume of masonry, not related to the superstructure of the building or additional loads from newly installed equipment;
- partitions - repair, change and replacement of worn-out partitions with more progressive designs. During the overhaul of partitions, partial redevelopment is allowed with an increase in the total area of ​​the partitions by no more than 20%;
- roofs and coverings - partial or complete change of dilapidated elements of coverings, as well as replacing them with more progressive and durable ones; rebuilding of roofs in connection with the replacement of the roofing material.
In addition, the named list includes works on the overhaul of central heating, ventilation, water supply and sewerage.
Often, in order to eliminate doubts, taxpayers turn to the Ministry of Finance for help. However, even officials cannot immediately systematize and sort out certain works carried out. In Letter No. 03-03-06/1/772 dated 13.12.2010, referring to clause 11.4 of the Regulation of the Ministry of Finance of Russia dated 03.23.2005 N 45n, the financiers noted that the appeals of organizations and individual entrepreneurs regarding the assessment of specific business situations are not considered in the Department ( the Letter refers to the classification of works on replacing wooden windows with plastic ones (works on replacing windows were carried out before the registration of ownership of the building)). The Ministry of Finance notes: when distinguishing between modernization and repair of fixed assets, a change in the technological or service purpose of equipment or the acquisition of other new qualities by it is of decisive importance. At the same time, the cost of carrying out work in accordance with Ch. 25 of the Tax Code of the Russian Federation is not a criterion for such a distinction (Letter of March 24, 2010 N 03-03-06 / 4/29).

Accounting and tax accounting

And now, actually, let's talk about the procedure for accounting for the costs of repair work in accounting and tax accounting. In accordance with paragraph 7 of PBU 10/99 "Expenses of the organization", the costs of maintaining and operating fixed assets, as well as maintaining them in good condition, are related to expenses for ordinary species activities. Regulatory documents By accounting There are three options for accounting for the cost of repairing fixed assets. The enterprise must select one of them and fix its use in the accounting policy for accounting purposes:
1) the amount of actual costs for the repair of the OS may in in full be included in the current expenses of the period in which they were incurred (clause 27 PBU 6/01, clauses 7, 18 PBU 10/99). An entry is made in accounting: Debit 20 "Main production" (23 "Auxiliary production", 25 "General production costs", 26 " General running costs", 29 "Service industries and economy", 44 "Sales expenses") Credit 10 "Materials" (60 "Settlements with suppliers and contractors", 69 "Settlements for social insurance and security", 70 "Settlements with personnel for remuneration", 76 "Settlements with various debtors and creditors");
2) the enterprise has the right to create a reserve for the repair of fixed assets with the subsequent write-off of expenses at the expense of the created reserve (clause 72 of the Regulation on accounting and financial statements in the Russian Federation (hereinafter referred to as PVBU), clause 69 of the Guidelines for the accounting of fixed assets, Instructions for the use of the Chart of Accounts) (Debit 20 (25, 26) Credit 96 "Reserves upcoming expenses"; Debit 96 Credit 60 (76). In the case of repairs on their own: Debit 20 (25, 26) Credit 96; Debit 23 Credit 10, 20, 25, 26, 69, 70; Debit 96 Credit 23);
3) the costs of unevenly carried out repairs of fixed assets may be preliminarily recorded on account 97 "Deferred expenses" and subsequently debited from the specified account to the debit of cost accounting accounts in the manner and terms established accounting policy organizations (clause 19 PBU 10/99, clause 65 PVBU, Instructions for using the Chart of Accounts) (Debit 97 Credit 10, 60, 69, 70, 76; Debit 20 (23, 25, 26, 29, 44) Credit 97 ).

The Tax Code provides for two options for accounting for the cost of repairing fixed assets for tax purposes:
1) expenses for the repair of fixed assets may be included in other expenses in the reporting (tax) period in which they were incurred, in the amount of actual costs (clause 1, article 260, clause 5, article 272 of the Tax Code of the Russian Federation);
2) taxpayers have the right to create reserves for future repairs of fixed assets to ensure uniform accounting for the costs of repairs over two or more tax periods (clause 3, article 260 of the Tax Code of the Russian Federation).
The chosen method of accounting for the cost of repairing fixed assets for the purpose of calculating income tax should be fixed in the accounting policy for tax purposes. In practice, so that there are no differences, organizations choose the identical method of accounting for the costs of repairing the fixed assets both in accounting and in tax accounting, refusing to reflect the cost of repairs in accounting through account 97.

If the OS is not put into operation

If the enterprise carries out repairs of fixed assets before its commissioning, the initial cost of the fixed asset should be formed taking into account the costs of repairs. This applies to both accounting and tax accounting. That is, in fact, although work on the restoration of the OS according to industry legislation can be classified as repairs, from the point of view of accounting and tax legislation this is bringing the OS to a state suitable for use (clause 8 PBU 6/01, clauses 23, 24, 26, 32 of the Guidelines for accounting of fixed assets, clause 1 article 257 of the Tax Code of the Russian Federation). These costs are associated with the creation of an item of property, plant and equipment and are capital investments to be charged to expenses through depreciation deductions(Debit 08 "Investments in fixed assets"Credit 10, 60, 69, 70, 76; Debit 01 "Fixed assets" Credit 08) (Letter of the Federal Tax Service for Moscow dated 04/18/2008 N 20-12 / 037669.2, Decree of the FAS UO dated 06/27/2008 N F09-4529 /08-C2).
Another thing is if the fixed asset is put into operation, that is, it is actually used by the enterprise in its activities, but the package of documents for state registration has not yet been collected (by virtue of clause 11 of article 258 of the Tax Code of the Russian Federation, fixed assets, the rights to which are subject to state registration under the legislation of the Russian Federation , are included in the corresponding depreciation group from the moment of the documented fact of filing documents for registration of these rights). The provisions of paragraph 11 of Art. 258 of the Tax Code of the Russian Federation apply to the procedure for calculating depreciation, but do not apply to the recognition of repair costs. Thus, in this case it is lawful to recognize repair costs among other expenses without increasing the initial cost of fixed assets (Letter of the Ministry of Finance of Russia dated 17.01.2006 N 03-03-04 / 1/25, Resolutions of the FAS PO dated 01.26.2010 N A72-8244 / 2009, FAS VSO dated November 15, 2007 N A58-1288 / 07-F02-8428 / 07).

The main tool for conservation

During economic crisis(and not only) at industrial enterprises there are cases of transfer of fixed assets for conservation. At the same time, repair work can be carried out in relation to such property. Can these costs be recognized for income tax purposes?

For reference. The fixed asset is excluded from the depreciable property if the conservation period exceeds three months (clause 3, article 256 of the Tax Code of the Russian Federation). A similar rule applies in accounting (clause 23 PBU 6/01, clause 63 of the Methodological Guidelines for Accounting of Fixed Assets).

This issue was not raised by chance. The fact is that there are precedents for the tax authority to refuse to recognize the costs of repairing a mothballed fixed assets object as income tax expenses (Resolutions of the FAS MO dated 01.09.2008 N KA-A40 / 8144-08, FAS ZSO dated 09.25. N F04-6493/2007(38344-A27-26)). The courts, however, did not agree with the fiscals, but took the side of the taxpayer. The SZO arbitrators noted that the company was repairing mothballed fixed assets that are not directly involved in production, which cannot serve as a basis for not accepting the costs incurred for tax purposes. The fact of conservation of such fixed assets does not release their owner, which is the taxpayer, from the obligation to maintain them in working condition. By the definition of the Supreme Arbitration Court of the Russian Federation of January 31, 2008 N 691/08 in the transfer of this Decree to the Presidium of the Supreme Arbitration Court for review by way of supervision was denied.
Not so long ago, a Letter of the Ministry of Finance (dated September 15, 2010 N 03-03-06 / 1/590) was published, in which officials recognized this position of the judges as legitimate. Part non-operating expenses reasonable costs for activities not directly related to production and (or) sales are included. These include, in particular, the costs associated with the mothballing and reactivation of production facilities and facilities, including the costs of maintaining mothballed production facilities and facilities (clause 9, clause 1, article 265 of the Tax Code of the Russian Federation). Officials noted that the costs associated with the conservation of fixed assets are aimed at maintaining and maintaining property in good condition, which will later generate income, and therefore such costs, including costs for the current maintenance, repair, protection of facilities necessary for the maintenance of idle and mothballed fixed assets, in our opinion, are recognized as economically justified for the purposes of taxation of profits of organizations.

Documenting

All business transactions conducted by the organization must be documented with corroborating documents. These documents serve as primary accounting documents on the basis of which accounting is maintained. Such a requirement is established by paragraph 1 of Art. 9 federal law dated November 21, 1996 N 129-FZ "On Accounting". For the purposes of tax accounting, expenses must be justified and documented (clause 1, article 252 of the Tax Code of the Russian Federation). So, documents confirming the validity of the repair of fixed assets, in our opinion, can be:
- order of the head of the organization (orders of the head structural unit, other authorized person) for repairs;
- defective statement (contains the rationale for the need for repairs). Note that at present the form of the defective statement has not been approved, therefore, when developing it, a food industry enterprise can use as an example unified form N OS-16 "Act on the revealed defects of the equipment";
- Schedule of repairs (used for scheduled repairs).

The costs incurred during the repair of an item of fixed assets are reflected on the basis of the relevant primary accounting documents for accounting for vacation (expense) operations material assets, accrual of wages, debts to suppliers for repairs and other expenses (clause 67 of the Methodological Guidelines for Accounting of Fixed Assets).
Documents confirming the amount of expenses incurred are:
- source documents on accounting of operations of release (expenditure) of material assets (standard intersectoral forms N M-11 "Demand-waybill", N M-15 "Invoice for the release of materials to the side", an act of writing off raw materials and materials);
- primary documents for settlements with personnel on remuneration;
- certificate of acceptance and delivery of repaired, reconstructed, upgraded facilities fixed assets in form N OS-3;
- inventory card accounting for an object of fixed assets (form OS-6), with the obligatory completion of section. 6 "Repair costs".

If the repair is carried out by contractor, the cost of repairs can be confirmed, in particular:
- a contract for the performance of repair work;
- act of acceptance and transfer of work performed;
- payment orders.

The article deals with the issue of qualification of work on the restoration of fixed assets. So, repair work (including a capital one) includes work on the systematic and timely protection of fixed assets from premature wear, the replacement of worn parts (structures) and parts and their replacement with stronger ones that improve the operational capabilities of the repaired OS objects. At the same time, the line between major repairs and reconstruction (modernization) is very thin. Thus, work on the reorganization of fixed assets related to the improvement of production and the increase in its technical and economic indicators are already qualified for tax purposes as a reconstruction. And the work caused by a change in the technological or service purpose of the fixed asset, increased loads and other new qualities, such as additional equipment, modernization. Consequently, the cost accounting for their implementation is carried out in a different (different from the accounting for repair work) procedure. In addition, the article touches upon the issue of carrying out repair work on fixed assets that are on conservation. A list of documents that a food industry enterprise must have when carrying out repairs is given.

Appendix A to SNiP 12-01-2004 "Organization of construction" (approved by Decree of the Gosstroy of Russia dated April 19, 2004 N 70) gives the following definition of repair of buildings and structures in operation: repair of a building (structure) - a complex of construction works and organizational and technical measures for elimination of physical and moral depreciation not associated with a change in the main indicators of the building or its purpose. A similar wording is given in the Regulations on the organization and implementation of the reconstruction, repair and maintenance of buildings, communal and socio-cultural facilities VSN 58-88 (p) (approved by the Order of the State Committee for Architecture under the Gosstroy of the USSR dated November 23, 1988 N 312). At the same time, the current repair of a building is understood as repair in order to restore the serviceability (operability) of its structures and systems of engineering equipment, as well as to maintain operational performance. And the overhaul of the building is aimed at restoring its resource with the replacement, if necessary, of structural elements and systems of engineering equipment, as well as improving performance.
As for the concept of repair used in science, technology and production, one should use the Standard "System for the maintenance and repair of equipment. Terms and definitions. GOST 18322-78" (approved by the Decree of the USSR State Standard of November 15, 1978 N 2986). In accordance with this Standard, repair is a set of operations to restore the serviceability or performance of products and restore the resources of products or their components. Current repair is a repair performed to ensure or restore the operability of the product, consisting in the replacement and (or) restoration of individual parts of the item. Overhaul is carried out to restore serviceability and complete (close to complete) restoration of the product resource with the replacement or restoration of any of its parts, including the basic ones (Decrees of the Ninth Arbitration Court of Appeal dated 07.07. 09AP-143/2010-AK).

To maintain the performance of fixed assets, it is necessary to periodically repair them. OS repair differs from modernization in that it eliminates malfunctions and damage to an object (assemblies, parts) without improving its characteristics. How to reflect the repair of fixed assets in accounting, as well as the postings that need to be generated during such operations, we will consider further.

There are two types of repairs:

  • Current;
  • Capital.

During reconstruction and modernization, repair costs increase the value of the object. During repairs, both current and capital, they are written off as current expenses.

OS repairs are carried out in an economic way, that is, on their own, or by contracting with the involvement of third-party contractors. Repair costs are written off to the accounts of production costs, that is, they are included in the cost price.

General cost allocation scheme:

If the costs of repairing fixed assets form significant amounts, then the organization can recover these costs from the previously formed fund on account 96 “Reserve for future expenses”.

OS repair reserve

The essence of the reserve for repairs is the uniform distribution of costs over the periods of the year. That is, the costs of repairs carried out in the current period are not written off to current costs, but to account 96. A repair reserve cannot be created for individual fixed assets, the total cost of all fixed assets of the organization is taken to calculate the reserve.

An accounting reserve for fixed assets repair can be created by companies established at least 3 years ago. The amount of the reserve is calculated based on the amount of expenses for repairs of previous periods - the average amount of expenses for the previous three years is calculated. The amount of the reserve should not exceed this figure.

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Accrual of a reserve for the repair of fixed assets - postings

In the Rakita organization, the amount of repair costs for 2013 amounted to 50,000 rubles, for 2014 - 70,000 rubles, for 2015 - 60,000 rubles. The average amount is 60,000 rubles. ((50,000 + 70,000 + 60,000)/3). The reserve is created monthly, the amount of reflection: 60,000/12 = 5,000 rubles.

In January 2016, the accountant creates a reserve for the repair of fixed assets of the posting:

OS repair in an economic way

LLC "Fortuna" repairs the fixed assets object in an economic way. The organization does not create a reserve for repairs, so all costs are included in the expenses of the current period. The cost of the own materials equal to 3,600 rubles. Labor costs for workers performing repairs - 10,000 rubles.

OS repair postings in an economic way will be as follows:

With the economic method, all amounts from cost accounts are eventually collected on account 23 "Auxiliary production", which is closed to account 20 "Main production".

Suppose that the organization creates a reserve for the repair of fixed assets. Then the write-off of expenses will be made at the expense of the reserve.

Postings for writing off the cost of repairing fixed assets in an economic way at the expense of the reserve will be as follows:

* The accrual of the FSS is given as an example of the accrual of insurance premiums.

Contract OS repair

GreenLight LLC entered into an agreement with the contractor - the Technoserv company on the repair of the escalator. The total amount of the fixed assets repair contract amounted to 330,400 rubles, including VAT of 50,400 rubles.

Postings for OS repair in a contractual way will be as follows:

When repairing at the expense of the reserve.

Accounting for the cost of repairing fixed assets depends on how it is done - contract or economic (own).

1. Repair was carried out in a household way

The cost of carrying out repairs on your own consists of:

  • from the cost of spare parts and consumables. The cost of spare parts and materials purchased for repair, consider as part of the MPZ ;
  • from the salary of employees who performed the repair;
  • from insurance premiums accrued from the salaries of employees, etc.

If a repair service has been created in the organization, then issue the costs of carrying out these works by posting:

Debit 23 Credit 10 (16, 69, 70...)

- reflects the cost of repairing fixed assets.

After the fixed asset is completely repaired (that is, an act in the form No. OS-3 is signed), write off the expenses recorded on account 23 to the cost accounting accounts, depending on the purpose for which the fixed asset is used. As a rule, these are accounts that reflect depreciation on a repaired fixed asset:

Debit 20 (25, 26, 29, 44...) Credit 23

- written off the cost of repairing fixed assets.

If there is no repair service in the organization, then do not preliminarily take into account the costs of repairing the fixed asset on account 23. As they arise, do the wiring immediately:

Debit 20 (25, 26, 29, 44...) Credit 10 (16, 69, 70...)

- the cost of repairing the fixed asset has been taken into account.

This procedure follows from the Instructions for the chart of accounts (account 23).

An example of the reflection in accounting of expenses for the repair of fixed assets, performed by a household method. There is no repair service in the organization

LLC “Trading firm “Germes”” carried out on its own Maintenance refrigerating chamber. There is no repair service in the organization. The organization does not create a reserve for the repair of fixed assets. The organization applies the accrual method and pays income tax on a quarterly basis.

Before the repair, an act was drawn up on the identified malfunctions (defects) of the refrigeration chamber. According to the act, the compressor failed. Since the compressor cannot be restored, it was decided to replace it.

To do this, in January, the organization purchased a compressor in the amount of 3540 rubles. (including VAT - 540 rubles) and handed it over for repair work. The organization keeps accounting for the cost of materials without using accounts 15 and 16. In January, the refrigerator was repaired. The accountant was given an act on the replacement of the compressor.

Labor costs (salary and insurance premiums from it) of the employees who performed the repairs amounted to 2000 rubles.

The Hermes accountant made the following entries:

Debit 10-5 Credit 60
- 3000 rub. (3540 rubles - 540 rubles) - a compressor was purchased;

Debit 19 Credit 60
- 540 rubles. - VAT included on the cost of the compressor;


- 540 rubles. - accepted VAT for deduction;

Debit 60 Credit 51
- 3540 rubles. - listed cash for the compressor

Debit 44 Credit 10-5
- 3000 rub. - the compressor installed during the repair of the refrigeration chamber was decommissioned;

Debit 44 Credit 70 (69)
- 2000 rub. - the cost of remuneration of employees who repaired the refrigeration chamber was taken into account.

2. The repair was carried out by the contractor

If the repair is performed by the contractor, then reflect the costs of his remuneration by posting:

Debit 20 (25, 26, 29, 44...) Credit 60

- costs for the repair of fixed assets, performed by a contract method, are taken into account.

This procedure follows from paragraphs 5, 7, 16, 18 PBU 10/99.

An example of the reflection in accounting of expenses for the repair of fixed assets performed by the contractor

LLC “Trading firm “Germes”” carried out the repair of the refrigeration chamber with the help of the contracting organization “Alfa” LLC. The cost of the work amounted to 8260 rubles. (including VAT - 1260 rubles). The organization does not create a reserve for the repair of fixed assets. The organization applies the accrual method and pays income tax on a quarterly basis.

In April, upon receipt of the act in the form No. OS-3, the Hermes accountant made the following entries:

Debit 44 Credit 60
- 7000 rub. (8260 rubles - 1260 rubles) - the costs of repairing the refrigeration chamber are taken into account;

Debit 19 Credit 60
- 1260 rubles. - VAT included on the cost of repairs;

Debit 68 subaccount "VAT settlements" Credit 19
- 1260 rubles. - accepted VAT for deduction;

Debit 60 Credit 51
- 8260 rubles. - funds were transferred to Alfa for the repair of the refrigeration chamber.

Situation: is it possible to reflect in accounting the costs of repairs of fixed assets that are unevenly performed during the year as part of deferred expenses?

Answer: yes, you can. This will allow you to write off such expenses evenly, without distorting the financial result.

After all, this is exactly what needs to be done when it is impossible to clearly define the relationship between expenses and income (paragraph 19 of PBU 10/99). Moreover, such an order for uneven repair costs is directly indicated in the Instructions for the chart of accounts in the section on account 97 “Deferred expenses”.

That's why similar expenses reflect it like this:

Debit 97 Credit 10 (16, 60, 69, 70...)

- the cost of repairing fixed assets has been taken into account.

A similar position is expressed in the letter of the Ministry of Finance of Russia dated January 12, 2012 No. 07-02-06 / 5.

Situation: how to reflect regular large expenses for the overhaul of fixed assets in accounting? According to the plan, repairs are carried out every few years.

These costs are included in deferred expenses.

After all, such capital expenditures should be repaid in the time interval between expensive repairs. Such costs should be reflected in balance sheet as a separate indicator clarifying the data on line 1150 "Fixed assets". This is also indicated in the annex to the letter of the Ministry of Finance of Russia dated January 9, 2013 No. 07-02-18 / 01.

Therefore, in accounting, the costs of overhaul and must be reflected on account 97. Then write off such expenses evenly to the cost accounting accounts. Here's how to wire it up.

When to spend on a major overhaul:

Debit 97 Credit 10 (60, 69, 70...)

- expenses for capital repairs of fixed assets are taken into account.

When you write off expenses evenly, make the following entries:

Debit 20 (23, 26) Credit 97

- part of the cost of overhaul of fixed assets is written off as expenses.

An example of reflecting in accounting the costs of regular overhaul of a fixed asset

Alfa LLC has high-tech equipment on its balance sheet. According to technical documentation periodic overhaul of equipment must be carried out every two years during its life. The first overhaul was completed in November 2014. Guided by the clarifications of the Russian Ministry of Finance, Alfa's accountant wrote off these costs evenly over two years from the date of the first repair.

Major repairs were carried out by the contractor. Its cost was 1,180,000 rubles. (including VAT - 180,000 rubles).

The accountant of Alpha made such entries in the accounting.

In November:

Debit 97 Credit 60

- 1,000,000 rubles - reflected the cost of major repairs;

Debit 19 Credit 60

- 180,000 rubles. - VAT included on the cost of major repairs;

Debit 68 subaccount "VAT settlements" Credit 19

- 180,000 rubles. - accepted VAT for deduction;

Debit 60 Credit 51

- 1,180,000 rubles. - transferred funds to the contractor.

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