Economic sciences / 7. Account and audit

Alimova D. Zh.

Kostanaysky state university of a name of A. Baytursynov, Kazakhstan

Regulation of the accounting of fixed assets in the Republic of Kazakhstan

IFRS (IAS) 16 are allocated by two ways of reflection of revaluation on accounting accounts:

1 . the sum of the saved-up depreciation for date of revaluation is overestimated in the same proportion, as change of balance cost of an asset to a depreciation deduction; thus after revaluation the balance (residual) cost of an asset equals its overestimated cost;

2 . the sum of the saved-up depreciation for date of revaluation is written off for reduction of a balance project cost to a depreciation deduction then the received result is overestimated to fair value.

Rules of reflection of results of revaluation of objects of fixed assets:

1 . revaluation is made on everyone to object of fixed assets;

2 . revaluation belongs on increase in the capital of the company (it is reflected in balance under the article "Result of Revaluation"), thus the revaluation sum within earlier carried out markdown joins in the profit and loss report, i.e. increases net profit of the reporting period;

3 . the markdown admits a period expense, reduces financial result and is reflected in the profit and loss report, thus the markdown sum within earlier made revaluation belongs on capital reduction (it is subtracted from the article "Result of Revaluation").

Realization of the sum of revaluation. The positive result of revaluation (revaluation) included in the section "Capital" of the balance sheet, is realized by one of two ways:

1 . it is written off by the full sum directly for the account of retained earnings when leaving asset;

2 . it is written off by parts in the course of asset use by the company as a difference between the sum of the depreciation calculated on the basis of the overestimated cost of an asset, and the sum of the depreciation calculated on the basis of its initial cost.

In independence of the chosen way write-off of revaluation of fixed assets isn't reflected in the profit and loss report.

By IFRS (IAS) 16 "Fixed assets" determines depreciation – as systematic reduction of depreciable cost of an asset throughout the term of its useful service.

Depreciable cost - the actual costs of acquisition of the main means or other size reflected in financial statements instead of the actual expenses, minus liquidating cost, i.e. initial cost minus liquidating.

Liquidating cost is the sum which the company expects to receive for an asset at the end of the term of its useful service minus expected costs of its leaving. If the size of liquidating cost is insignificant (is insignificant), it can not be considered when forming depreciable cost. If the company uses account model at the overestimated cost, liquidating cost is subject to revaluation also.

According to IFRS (IAS) 16 the term of useful service of object of fixed assets is the period during which use of a depreciable asset, or quantity of products which the company assumes to make with asset use is expected. When determining the term of useful service of an asset it is necessary to consider the following factors:

1 . the expected volume of use of an asset, proceeding from its estimated power or the actual productivity;

2 . the estimated physical wear, depending on intensity of use (number of changes), the program of repair and service, storage conditions;

3 . technological and obsolescence;

4 . legal or similar restrictions on asset use.

Thus, on IFRS (IAS) 16 the term of useful service of fixed assets decides by the company independently estimated way on the basis of experience on similar assets and other objective factors.

Useful service also has to be reconsidered periodically: towards increase if the expenses improving a condition of the main means over originally established standards are made or there is more effective a policy of the company in the field of repair and service; towards reduction, in case of adverse changes of technology or in a situation in the market.

IFRS (IAS) 16 aren't established by the closed list of methods of depreciation of fixed assets. The main requirement consists in that the applied method of depreciation reflected the scheme according to which the company is consumed the economic benefits received from an asset. Among the methods of depreciation listed in the standard contain: linear method; method of the decreasing rest of depreciable cost; functional method.

The method of depreciation applied to fixed assets according to IFRS, has to be reconsidered periodically. So, in case of considerable changes of the scheme of receiving economic benefits from object, the method of charge of depreciation has to be changed so that to correspond to these changes.

Revision of methods of charge of depreciation and useful services (according to IFRS 8 "Accounting policies, changes of accounting estimates and a mistake") is considered as change of accounting estimates and demands adjustment of the sum of depreciation charges current and future reporting periods.

The financial result (profit or a loss) from leaving of object of fixed assets is defined as a difference between the sum of receipts from leaving and balance cost of an asset and is reflected as the income or an expense in the profit and loss report.

Concerning the fixed assets considered on models of the account at the overestimated cost, the following information in addition reveals:

1 . way and date of revaluation of assets;

2 . fact of involvement of the independent appraiser;

3 . the methods used at determination of recovery cost (to costs of replacement);

4 . balance cost on each group of fixed assets which would be reflected in financial statements if assets were considered at initial cost minus depreciation;

5 . the result of revaluation indicating changes for the period and restrictions on distribution of the rest of a reserve of revaluation between shareholders

Literature

1 . Tolpakov Zh.S. Accounting: The textbook for higher education institutions. - Karaganda, JSC Karagandinskaya Poligrafiya, 2004.

2 . Seydakhmetova F.S. Modern accounting: Manual. - Alma-Ata: Economy, 2000.

3 . Shishkova T.V. Kozeltseva E.A. International Financial Reporting Standards: textbook. - Moscow: Eksmo, 2009.

4 . Nurseytov Z.O. Accounting in the organizations: Manual. - Alma-Ata, LEM, 2007.