Postings for revaluation of fixed assets. Revaluation of fixed assets: briefly about the most important Mandatory revaluation of fixed assets

The initial cost of an item of fixed assets (FPE), i.e. the cost at which it was accepted for accounting, may change not only in cases of completion, additional equipment, reconstruction, modernization and partial liquidation, but also during revaluation (clause 14 PBU 6/01).

We will tell you more about the features of the revaluation of fixed assets in accounting and the reflection of its results in our consultation.

Why and how often is OS revaluation carried out?

The purpose of the revaluation is to bring information on the value of fixed assets into compliance with market prices and reproduction conditions on the date of revaluation (clause 41 of Order of the Ministry of Finance dated October 13, 2003 No. 91n).

Conducting a revaluation is a right, not an obligation of the organization. But here it is necessary to take into account that if an organization once decides to revaluate fixed assets, it will have to be done regularly in the future so that the cost at which fixed assets are reflected in accounting and reporting does not differ significantly from the current (replacement) cost. This means that if in any year the value does not change significantly, revaluation will not be necessary (clause 44 of Order of the Ministry of Finance dated October 13, 2003 No. 91n).

Revaluation can be carried out no more than once a year at the end of the reporting year (clause 15 of PBU 6/01). All OS objects included in the group of homogeneous OS objects must be revalued. A homogeneous group can be buildings, structures, equipment, computer technology, vehicles, etc. An organization can clarify which objects form a group of homogeneous operating systems in its own.

To carry out the revaluation and reflect its results, the following information will be required (clause 46 of Order of the Ministry of Finance dated October 13, 2003 No. 91n):

initial cost or current (replacement) cost (if the asset was previously revalued) as of December 31 of the reporting year according to accounting data;
the amount of depreciation accrued for the entire period of use of the object as of the same date;
documented data on the current (replacement) cost of revalued fixed assets at the end of the reporting year.

How is revaluation reflected in accounting?

When revaluing fixed assets, not only their original or current (replacement) cost is recalculated, but also the amount of depreciation accrued at the end of the year in which the revaluation is carried out.

The results of the revaluation are reflected in accounting depending on whether the revaluation was previously carried out and what it led to - an additional valuation or a depreciation of assets.

Thus, the amount of the initial revaluation of an asset is credited to additional capital, and the initial depreciation is included in other expenses.

If a revaluation has already been carried out previously, then the revaluation is reflected as follows (clause 15 of PBU 6/01):

if there was also an additional valuation previously, the “new” additional valuation is applied to additional capital;
if there was previously a markdown, then the additional valuation of the current year within the limits of the previous markdown attributed to other expenses increases other income in the current year, and in excess of the “old” markdown is attributed to additional capital.

And the markdown, which is not primary for the organization, is reflected in accounting as follows:

if there was also a markdown previously, the “new” markdown is applied to other expenses of the organization;
if there was previously an additional valuation, then the current year’s markdown within the limits of the previous additional valuation allocated to additional capital reduces the amount of additional capital, and in excess of the “old” additional valuation is charged to other expenses.

Let us give an example of reflecting revaluation in the accounting records of an organization ().

The initial cost of the fixed asset as of December 31, 2016 was 613,000 rubles, the amount of accrued depreciation was 91,190 rubles. Term beneficial use– 121 months.

The organization decided to reevaluate the object. Its current market value as of December 31, 2016 is RUB 690,000.

On December 31, 2017, the current value of a fixed asset item decreased to RUB 560,000. The accumulated amount of depreciation as of the reporting date is RUB 171,074.

It turns out that the markdown of the fixed asset will be 130,000 rubles. (690,000 – 560,000), which exceeds the amount of the revaluation carried out last year. Let us remind you that in accordance with the requirements of clause 15 of PBU 6/01, a markdown in the value of fixed assets in excess of the revaluation amount is charged to other expenses, and a markdown of depreciation, accordingly, to other income. Therefore, the entries in the organization’s accounting on December 31, 2017 need to be made as follows:

If a revalued fixed asset is disposed of and the amount of additional capital is recorded on it, then this amount is transferred to the organization’s retained earnings (Order of the Ministry of Finance dated October 31, 2000 No. 94n):

Debit of account 83 – Credit of account 84 “Retained earnings (uncovered loss)”

We remind you that for the purpose of calculating the tax base for income tax, the results of the revaluation of fixed assets are not taken into account (

In this material we offer our readers brief and most informative answers to the most common questions regarding the essence and mechanism accounting revaluation fixed assets (hereinafter referred to as fixed assets) at the enterprise. In order to save your time, we specifically weeded out everything that is not worth attention and left only important information

What is OS revaluation and why should OS be revalued?

In accounting, revaluation of fixed assets is a procedure by which the residual value of a specific fixed asset is reconciled with fair value. In particular, it is regulated by P(S)BU 7 “Fixed assets” and Guidelines on accounting of fixed assets, approved by order of the Ministry of Finance of Ukraine dated September 30, 2003 No. 561 ( Further- Recommendation method No. 561).

The purpose of maintaining accounting and preparation of financial statements is to provide users with complete, truthful and unbiased information about the financial position, results of operations and movement for decision-making Money enterprises (Part 1 of Article 3 of the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” dated July 16, 1999 No. 996-XIV ( Further- Law on Accounting)). This goal will be achieved, in particular, through revaluation, at least in terms of providing users with reliable information about the real (fair) value of assets such as fixed assets.

Revaluation of OS - mandatory or voluntary

Revaluation of OS is voluntary. This confirms clause 16 P(S)BU 7:

"Company may overestimate an item of fixed assets, if the residual value of this item differs significantly from its fair value at the balance sheet date(hereinafter in quotations the author is highlighted - Note ed. )».

At the same time, there are cases when legislation establishes the obligation to review the cost of certain fixed assets ( cm. , for example, Resolution of the Cabinet of Ministers “On the procedure for indexing the cost of housing facilities” dated August 31, 1996 No. 1024). The results of such procedures will also be reflected in accounting (although they are not the classic revaluations that are now being discussed).

What is materiality? What deviation of the residual value of fixed assets from their fair value is considered significant?

As already noted, according to paragraph 16 of P(S)BU 7, an enterprise can revalue an asset if the residual value of this item differs significantly from its fair value as of the balance sheet date. There is no standard definition of materiality at all, and, unfortunately, P(S)BU does not provide limits for materiality regarding the revaluation of fixed assets. Although Recommendation Method No. 561 defines:

“The materiality threshold for revaluing or reflecting a decrease in the usefulness of fixed assets may be an amount equal to 1 percent of the net profit (loss) of the enterprise, or an amount equal to a 10 percent deviation of the residual value of fixed assets from their fair value"(clause 34).

Officials provided the same advice in paragraph 6 of the letter of the Ministry of Finance of Ukraine dated July 29, 2003 No. 04230-108.

Is it possible to change the materiality limit of the deviation of the residual and fair value of fixed assets for the purpose of revaluation?

There are only recommendations regarding the establishment of such a limit. In practice, the enterprise, represented by its manager, sets it at its own discretion, based on specific operating conditions and the requests of users of financial statements. That is, management must analyze the situation and, using their own professional judgment, decide which discrepancy in the values of the fixed assets is significant, namely, what affects the reliability of the financial statements.

Is it necessary to indicate the materiality criterion in the order on accounting policies?

We believe that the criterion for the materiality of the discrepancy between the residual and fair value of fixed assets for their revaluation can be considered as an element of the accounting policy of the enterprise (Article 1 of the Accounting Law). Accordingly, such a limit for each group of fixed assets (if it is established by group) should be indicated in the order on accounting policies. By the way, the Ministry of Finance of Ukraine noted in letter dated December 21, 2005 No. 31-34000-10-5/27793 that the administrative document on the accounting policy of the enterprise should determine the application, in particular, of the materiality threshold for individual accounting objects.

Is it possible to selectively re-evaluate an OS?

It is unacceptable. According to clause 16 of P(S)BU 7, in the case of a revaluation of an asset as of the same date, a revaluation of all objects of the asset group to which the object belongs is carried out. In turn, an OS group is a set of similar technical specifications, purpose and conditions for the use of non-current tangible assets (clause 4 P(S)BU 7).

Note: the list of generalized OS groups contains clause 5 of P(S)BU 7.

When is an OS revaluation carried out?

Based on clause 16 P(S)BU 7, revaluation of fixed assets is carried out on the date balance. According to clause 3 of P(S)BU 6 “Correction of errors and changes in financial statements,” the balance sheet date is the date on which the enterprise’s balance sheet was compiled. Typically the balance sheet date is the end last day reporting period. In accordance with Part 1 of Art. 13 of the Accounting Law, reporting period for preparing financial statements - calendar year. Interim reporting is prepared quarterly on an accrual basis from the beginning of the reporting year as part of the balance sheet and income statement. The balance sheet of the enterprise is compiled as of the end of the last day of the quarter (year). However, this does not mean that revaluation will have to be resorted to so often.

How often is an OS revalued?

Taking into account the requirements of paragraph 16 P(S)BU 7, we believe that the enterprise has the right to independently establish the frequency of revaluations of certain groups of fixed assets (for example, every six months or once a year, every 3 years, etc.).

In turn, the revaluation of fixed assets of the group, the objects of which have already been revalued, must be carried out in the future with such regularity that their residual value as of the balance sheet date does not differ significantly from the fair value (paragraph 2 of paragraph 16 of P(S)BU 7) . So, having carried out the first revaluation of the fixed assets of the corresponding group, the enterprise must account for these fixed assets at the revalued cost. That is, the enterprise must regularly revalue the fixed assets of this group so that their fair value at the balance sheet date does not differ significantly from their residual value. In fact, this approach is confirmed by international practice, in particular, IAS 16 “Fixed Assets”. According to the mentioned document, the enterprise must choose its accounting policy or the accounting model (§ 30) or the revaluation model (§ 31), and he should apply this policy to the entire class of assets.

Paragraph 31 of IAS 16, in turn, describes the revaluation model. Once recognized as an asset, an asset (the fair value of which can be reliably measured) should be accounted for at the revalued amount, which is the fair value at the date of revaluation minus any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations must be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would have been determined using fair value at the end of the reporting period.

At the same time, guided by § 34, the frequency of revaluations depends on changes in the fair value of the revalued fixed assets. If the fair value of a revalued asset differs significantly from its carrying amount, further revaluation should be carried out. Some fixed assets may be subject to significant and volatile changes in fair value, requiring annual revaluation. Such frequent revaluations are not required for fixed assets with only minor changes in fair value. In this case, it is enough to evaluate them every 3 or 5 years.

We believe that these rules can be fully taken advantage of not only by 100% IAS, but also by enterprises that keep accounting and prepare financial statements in accordance with P(S)BU.

Can all OSes be overrated?

No, not all. Low-value non-current tangible assets and library collections are not subject to revaluation if their value is depreciated using the method “50% of the cost that is depreciated in the first month of use, and 50% in the month of withdrawal from assets (writing off the balance sheet)” or “100% of the cost, which is depreciated, in the first month of use” (paragraph 3, clause 16 P(S)BU 7).

Is it necessary to engage a professional appraiser to determine the fair value of fixed assets for their revaluation?

This is true. Considering para. 7 hours 2 tbsp. 7 of the Law of Ukraine “On the valuation of property, property rights and professional valuation activities in Ukraine” dated July 12, 2001 No. 2658-III ( Further- Law on Valuation), the valuation of property by the subject of valuation activities is mandatory, in particular in cases “revaluation of fixed assets for accounting purposes”. In addition, paragraph 33 of National Standard No. 1 “General principles for the valuation of property and property rights”, approved by Resolution of the Cabinet of Ministers of Ukraine dated September 10, 2003 No. 1440, among other things, states that:

“The assessment of property for the purpose of reflecting its results in accounting in the manner established by the legislation on accounting is carried out taking into account the fact that:

The fair value of an asset is equal to its market value if it can be determined in the manner established by this and other national standards...
the results of the assessment of assets for accounting purposes are considered to be their revalued value.”

So when revaluing an asset, you need to use the services of a certified professional appraiser. It is he who must determine the fair value of your fixed assets, which will be the basis for revaluing the fixed assets and reflecting its results in accounting. The result of the property valuation is confirmed by the Property Valuation Report (property valuation report) drawn up by such an appraiser. This report is signed by the appraiser who assessed the property and is countersigned by the head of the subject of appraisal activities. In accordance with Art. 12 of the Law on Valuation, the Property Valuation Report is a document that contains conclusions about the value of the property and confirms the procedures performed for the valuation of property by the subject of the valuation activity - the business entity under the contract.

How to reflect the costs of services (work) of the subject of valuation activities to establish the fair (market) value of property in accounting and tax accounting

In accounting, expenses for the services (work) mentioned in the question of the subject of valuation activities classified as administrative expenses and included in expenses in the period of their occurrence.

Thus, according to clause 18 P(S)BU 16 “Expenses”, administrative expenses include general business expenses aimed at maintaining and managing the enterprise, in particular: « fees for professional services(legal, auditing, property valuation, etc.).” Since establishing the market (fair) value of property (OS) is associated with economic activity taxpayer, there is no doubt about the cost of services (work) of the subject of assessment activities.

Regarding the date of reflection of expenses, according to paragraph 7 of P(S)BU 16, expenses are recognized as expenses of a certain period simultaneously with the recognition of the income for which they were incurred. Expenses that cannot be directly linked to the income of a certain period are reflected in the expenses of the reporting period in which they were incurred. Obviously, we are dealing with the second case (appraisal costs cannot be directly linked to any income), so we show the costs in the period during which appraisal services (work) are performed.

As we noted, the assessment will be confirmed by the Property Assessment Report (property assessment report), compiled by the appraiser in accordance with the requirements of Art. 12 of the Valuation Law. Also in the set of documents there must be an agreement for the assessment of property (it, in particular, determines the amount and procedure for payment for work), an acceptance certificate for the work performed and documents on payment for services (work) of the subject of the assessment activity.

In tax accounting, the expenses under discussion are reflected and recognized as expenses of the reporting period in which they were incurred, in accordance with the accounting rules.

The VAT paid (accrued) in the cost of services (work) for assessing property is included by the enterprise in a tax credit on a general basis (clause 198.3 of the Tax Code) subject to the presence of a correctly completed tax invoice and entered into the Unified Taxpayer Identification Number (URRN) (clause 198.6 of the Tax Code).

How to properly re-evaluate assets in order to reflect the results in accounting

If the fair value of the object is found, determine revaluation index object in accordance with clause 17 P(S)BU 7. It is calculated by dividing the fair value of the object that is being revalued by its residual value (if the object has already been revalued, the residual value is taken taking into account the previous revaluation).

When the index indicates that the materiality threshold has been crossed, calculate revalued original cost and revalued depreciation amount OS object. To do this, respectively, the original cost and the amount of depreciation (if the object has already been revalued, such indicators are taken taking into account previous revaluations) are multiplied by the newly found revaluation index.

Below are the key indicators: revaluation amounts(upgrade or markdown) initial cost, depreciation and residual value of fixed assets. To do this from overvalued the original cost and depreciation of the object are subtracted, respectively, the original cost and depreciation of the object before revaluation. And from the fair value of the object, its residual value is subtracted (this will be the amount of revaluation of the residual value). After you have found the revaluation amounts for an asset, you can move on to the accounts.

What are the features of revaluation of fixed assets with zero residual value?

The revaluation of such fixed assets is carried out in the manner provided for in paragraph. 2 clause 17 P(S)BU 7. If the residual value of an asset is zero, then its revalued residual value is determined by adding the fair value of this object to its original (revalued) value without changing the amount of depreciation of the object. In turn, for such objects that continue to be used, the liquidation value must be determined.

How to reflect the results of revaluation of an asset in accounting accounts

Firstly , the results of the revaluation are included in the financial statements of the period following which the revaluation was made.

Secondly , accounting records depend on what the company is dealing with (with revaluation or markdown), as well as on what the result of previous revaluations was (revaluation or markdown).

According to clause 19 of P(S)BU 7, the amount of additional valuation of the residual value of an asset is included in capital in additional valuations and is reflected in other comprehensive income, and the amount of the writedown is included in expenses.

At RE-ASSESSMENT, guided by Method Recommendations No. 561, it is necessary to make the following entries:

by the amount of additional assessment of the initial cost of the object:

Dt 10"Fixed assets" Kt 411“Additional valuation of assets”;

for the amount of additional depreciation assessment:

Dt 411 Kt 131"Depreciation of fixed assets."

At MARKOUT previously underestimated operating systems, taking into account the provisions of Method Recommendations No. 561, the following entries must be made:

for the amount of depreciation:

Dt 131 Kt 10;

by the amount of depreciation of the residual value of the object:

Dt 975“Revaluation of non-current assets and financial investments” Kt 10.

Similar entries are made if the first additional valuation (markdown) is followed by the next additional valuation (markdown). That is, if the direction of revaluation does not change.

At repeated revaluatione when the direction of revaluation has changed from markdown to revaluation or vice versa, we are guided by clause 20 P(S)BU 7.

If available (as of the date of the next (last) revaluation of the asset) exceeding the amount of previous markdowns of the object and losses from a decrease in its usefulness over the sum of previous additional assessments of the residual value of this object and the benefits from restoring its usefulness, the amount of the next (last) additional assessment, but not more than the specified excess, is included in the income of the reporting period, and the difference (if the amount of the next (last) additional valuation greater than the specified excess) is used to increase other additional capital.

If available (as of the date of the next (last) markdown of an asset) exceeding the sum of previous additional valuations of the object and benefits from the restoration of its usefulness over the sum of previous markdowns of the residual value of this object and losses from a decrease in its usefulness, the amount of the markdown, but not more than the specified excess, is used to reduce capital in additional valuations and is reflected in other comprehensive income, and the difference (if the amount of the markdown is greater, than the specified excess) is included in the expenses of the reporting period.

Reflection of results REVALUATIONS(previously discounted):

for the amount of additional assessment of OS wear:

Dt 10 Kt 131;

by the amount of additional assessment of the residual value (within the limits of previous markdowns that were included in expenses):

Dt 10 Kt 746“Other income from ordinary activities”;

by the amount of excess of the revaluation of the residual value over the amount of previous markdowns that were included in expenses:

Dt 10 Kt 411.

Reflection of results MARKOUTS OS (previously underrated):

for the amount of depreciation:

Dt 131 Kt 10;

by the amount of depreciation of the residual value (within the amount of previous increases):

Dt 411 Kt 10;

by the amount of excess of the depreciation of the residual value of the object over previous additional valuations of this object:

Dt 975 Kt 10.

Which primary documents contain data on the revaluation of an asset?

According to clause 18 P(S)BU 7, information about changes in the initial cost and the amount of depreciation of fixed assets is entered into the registers of their analytical accounting. Paragraph 35 of Recommendation Method No. 561 is more specific:

“Data on revaluation (changes in value and depreciation) are reflected in the registers of analytical accounting of fixed assets (inventory card for recording fixed assets, book of accounting for fixed assets, Statement of accounting for non-current assets and depreciation)”.

Are the results of revaluation reflected in tax accounting?

As you know, since 2015, income tax is determined from the accounting results plus/minus the differences specified in the r. III NKU. Without any differences (except for the loss of previous periods), taxpayers whose income (less indirect taxes) does not exceed UAH 20 million can determine the income tax base.

Financial result before tax:

increases by the amount of markdowns and losses from a decrease in the usefulness of fixed assets included in the expenses of the reporting period in accordance with P(S) Accounting Standards or IFRS;
is reduced by the amount of revaluation and benefits from restoring the usefulness of fixed assets within the limits of depreciation and losses from reducing the usefulness of fixed assets or intangible assets previously allocated to expenses in accordance with P(S) Accounting Standards or IFRS.

Wherein financial results Before taxation, the amount of additional valuations is not increased if no depreciation was carried out in previous reporting periods.

Thus, the first additional valuation of fixed assets in accounting is included in capital in additional valuations and will in no way affect the object of income taxation. In the future, additional valuations will affect the object of profit taxation only if markdowns have been made.

Revaluation of fixed assets is the process of recalculating the cost of OS objects. Revaluation of fixed assets is carried out to ensure that the value of objects corresponds to real market prices. The value of fixed assets obtained as a result of revaluation is called replacement value.

The organization itself determines what it will revaluate (this can be either single objects of fixed assets or groups of similar objects) and when (but not more than once a year at the end of the reporting period). The organization's desire to reassess is reflected in.

To carry out revaluation in commercial organizations, the method of direct recalculation using documented market prices is used.

Revaluation of fixed assets (d evaluation and markdown)

As a result of revaluation, both an increase (revaluation) and a decrease (depreciation) in the value of property is allowed.

The results of the revaluation are reflected in the accounting department at and 91 Other income and expenses. The results of the revaluation are reflected in accounting at the beginning of a new reporting period.

Posting when revaluing fixed assets: D01 K83- the cost has increased.

Posting when depreciating fixed assets: D91/2 K01- the cost has decreased.

When revaluing fixed assets, in addition to recalculating the value of objects, it is also necessary to carry out a recalculation.

To do this, we first calculate the degree of wear and tear, that is, we find the ratio of accrued depreciation to as a percentage. Then we multiply the revalued cost of the fixed asset by the degree of depreciation and obtain recalculated depreciation.

In case of revaluation, the recalculation of depreciation is reflected by the posting: D83 K02.

In case of markdown, the posting looks like this: D02 K91/1.

Revaluation of fixed assets (postings)

Revaluation of fixed assets. Examples of revaluation and depreciation

Example of revaluation of an object of fixed assets (revaluation):

The main thing original cost 20,000 rubles. Depreciation on it was calculated at 4,000 rubles.

As a result of the market analysis, the current average market price for this OS was identified, which amounted to 25,000 rubles. That is, the cost increased by 5,000 rubles.

Let's recalculate depreciation:

A = 25,000 * 20% / 100% = 5,000 rubles. That is, the cost of depreciation increased by 1000.

Postings for revaluation of fixed assets:

Sum	Debit	Credit	Operation name
5000	01	83	OS revaluation
1000	83	02	Overestimation of accrued depreciation

Example of revaluation of fixed assets (depreciation):

Fixed asset with an initial cost of 20,000.

The amount of accrued depreciation is 4000.

The average market price for similar OS is 16,000 (decreased by 4,000 rubles).

Wear rate = 4000*100% / 20000 = 20%.

Depreciation as a result of revaluation: 16,000 * 20% / 100% = 3,200 (decreased by 800).

Postings for depreciation of fixed assets:

Sum	Debit	Credit	Operation name
4000	91/2	01	OS markdown
800	02	91/1	Markdown of accrued depreciation

At the end of the topic, I would like to note that all changes that arose as a result of the revaluation of fixed assets must be entered into.

We continue to study the topic of fixed assets, in the next article we will look at what and.

Download sample forms for accounting for fixed assets at the enterprise:

In accounting, there is always a need to urgently revaluate fixed assets: to reflect their residual value, revaluation or markdown. This article will help to clearly show how to make accounting entries for the revaluation and revaluation of fixed assets.

This type of revaluation is carried out by a commission consisting of organizational administration, specialists, as well as accounting. The composition is appointed by the head of the organization.

The appointed commission conducts a complete inspection of all fixed assets that the organization has, draws up an inventory with their inventory number, name, and actual state wear.

A check is made of the actual wear and that which is available according to accounting data, and a comparative statement is drawn up, in which any deviations that appear are recorded.

OS inventory is carried out at least once every three years.

Reflection in can be seen in the table:

Debit	Credit	Operation name	A document base
		The surplus identified during the inventory was capitalized
		Shortage reflected during inventory	Resolution of the State Migration Service of the Russian Federation dated 21/01/03 N 7
		The shortage is written off to the guilty party	Resolution of the State Migration Service of the Russian Federation dated 21/01/03 N 7
		Payment for OS shortages	Resolution of the State Migration Service of the Russian Federation dated 21/01/03 N 7
		The shortage is withheld from the payroll of the guilty person	Resolution of the State Migration Service of the Russian Federation dated 21/01/03 N 7
		Shortage written off	Resolution of the State Migration Service of the Russian Federation dated 21/01/03 N 7

Postings for additional valuation of OS

The amount of revaluation, that is, the amount at which the cost of the fixed assets was increased, is reflected in the form of additional capital.

In addition, you need to take into account the cost that was previously accrued. In order to calculate the amount by which depreciation should be increased, you need to calculate the degree of depreciation on the date when the revaluation was made:

Depreciation rate = Depreciation charge/original cost.

Depreciation that was recalculated = Cost of restoration * degree of equipment wear.

Postings for additional valuation of fixed assets:

How to reflect the depreciation of fixed assets in accounting

The amount of the markdown, that is, the amount at which the cost of the fixed assets was reduced, is reflected in the form of other expenses in the debit of the account.

What are the main approaches used when revaluing property as of January 1, 2016? Which objects are necessarily revalued as of January 1, 2016, which are optional, and which are not revalued?

Answer

Decree of the President of the Republic of Belarus dated October 20, 2006 No. 622 “On issues of revaluation of fixed assets, unfinished construction of facilities and uninstalled equipment” (hereinafter referred to as Decree No. 622);
Resolution of the Ministry of Economy of the Republic of Belarus, the Ministry of Finance of the Republic of Belarus and the Ministry of Architecture and Construction of the Republic of Belarus dated November 5, 2010 No. 162/131/37 “On the procedure for revaluation of fixed assets, unfinished construction of facilities, uninstalled equipment” (hereinafter referred to as Instruction No. 162/ 131/37).

According to the norms of Decree No. 622, the types of revalued property included in the accounting records (in the book of income and expenses of organizations and individual entrepreneurs using the simplified taxation system) are determined, namely:

fixed assets;
profitable investments in tangible assets;
Equipment for installation.

According to clause 1.5 of Decree No. 622, property that is not subject to revaluation includes:

property located in the affected area radioactive contamination as a result of the disaster at the Chernobyl nuclear power plant;
land plots, environmental management facilities; housing and library funds; film funds, historical and cultural values, stage and production facilities and equipment; leasing objects; residential part of multi-apartment residential buildings;
property of consumer cooperatives engaged in the construction and (or) operation of parking lots Vehicle, garages owned by citizens; housing construction cooperatives and other developer organizations, owners' associations; dacha and gardening partnerships (cooperatives);
property for which a decision on disposal was made, from the date of adoption of the corresponding decision in accordance with the law until the date of actual disposal or cancellation of this decision;
objects of unfinished construction, with the exception of installed equipment and equipment that does not require installation as part of objects of unfinished construction, revalued in the generally established manner.

In relation to the types of property listed in this list, the organization does not have the right to independently decide on revaluation. The value of these types of property reflected in accounting cannot be changed by revaluation.

A single criterion for all organizations for conducting a mandatory revaluation in relation to buildings, structures, transmission devices is when the inflation rate in November of the current year for the period preceding it from the date of the last revaluation carried out in accordance with the law reaches 100% or more. According to the National Statistical Committee of the Republic of Belarus, posted on its official website, in November 2015 to December 2013, the inflation rate was 28.6%.

Consequently, the revaluation as of January 1, 2016 is carried out in relation to all types of revalued property by decision of the organization or the owner of the property voluntarily. The decision to conduct a revaluation can be made both in relation to all property without exception, and its individual groups (belonging to a certain group, subgroup or classified by a certain classification code for fixed assets) and even individual objects (clause 1 of Instruction No. 162/131/37 ).

In case of revaluation:

a single revaluation date is January 1 of the year following the reporting year, that is, January 1, 2016;
the results of the revaluation are reflected in accordance with the law in the accounting (book of income and expenses of organizations and individual entrepreneurs using the simplified taxation system) by organizations on December 31 of the reporting year. That is, the results of the revaluation as of January 1, 2016 must be reflected in the reporting for 2015 with the turnover of December 2015 (except for banks).

Consequently, revaluation as of January 1, 2016 of all types of revalued property, individual groups and (or) individual objects is carried out by decision of the organization or the owner of the property independently.