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1УДК 33 Rahmanberdiyev Sh., Serhenov M., Kuliyev M.
Rahmanberdiyev Sh.
Teacher of the Department of Economic management in enterprises Turkmen State Architecture and Construction Institute (Ashgabat, Turkmenistan)
Serhenov M.
Teacher of the Department of Economic management in enterprises Turkmen State Architecture and Construction Institute (Ashgabat, Turkmenistan)
Kuliyev M.
Student Faculty of Economics and Management Turkmen State Architecture and Construction Institute (Ashgabat, Turkmenistan)
VALUATION OF FIXED ASSETS.
PHYSICAL AND MENTAL WEAR AND TEAR
Аннотация: this article provides a brief overview of the valuation of fixed assets. It also talks about physical and moral wear and tear.
Ключевые слова: economics, business economics, treasury, fixed assets, depreciation, physical depreciation, moral depreciation.
Fixed production assets can be valued and recorded in a cost-effective manner. There are several types of valuation in terms of value: initial, recovery, residual and liquidation value.
The initial cost is the actual purchase price of this type of fixed assets, plus the cost of bringing and installing the relevant elements of the fixed assets (equipment, buildings, etc.) at current prices. Since fixed assets are recorded on the
balance sheet of the enterprise at this value, the initial cost is also referred to as the book value. Certain changes may occur during the life of the underlying funds. Some of them are related to the acceleration of the WTO, which makes the preparation of similar labor cheaper. Conversely, under devaluation conditions, the initial value of such labor increases. In both cases, it is necessary to eliminate the distortion of the price factor. To do this, they evaluate fixed assets at replacement value. Renovation cost shows how much it would cost to buy (or build) a fixed asset, such as an existing asset, at current prices.
On the one hand, the increase in the value of fixed assets is an objective process that allows us to adjust the size of the utilization rates to the needs of the enterprise for modernization, technical re-equipment and renewal of fixed assets.
At the same time, the intrinsic value of a firm's output increases (ie, the competitiveness of such output decreases) and the size of taxable profit decreases (at constant prices). In this case, the enterprise retains the amount of incoming funds and earns a profit due to the reduction of the income tax, while the budget loses this tax.
Due to the revaluation, the increase in the value of the fixed assets of the enterprise leads to an increase in the property tax of the legal entity, and at the same time, the problem of the competitiveness of the enterprise arises. This is due to the change in the value of the fixed assets according to the indices established in the existing regulatory documents, and the subsequent change in the size of the usage behavior, the profit received by the enterprise is lower than the permissible level or there is no profit at all. A business has to either operate at a loss or raise prices, which makes its products less competitive in the market. In such cases, the enterprise receives the right to use certain reduction coefficients with respect to the indexes determined in a centralized manner.
Currently, the enterprise has the right to re-evaluate the value of fixed assets on a voluntary basis once a year at the beginning of the year. If the enterprise changes the value of the property after regular revaluation from January 1 of the last year, then the results of such revaluation are reflected only in the accounting records. Not only does the value of the property remain unchanged, but so does the rate of taxes.
On the one hand, it is useless for enterprises to carry out revaluation of fixed assets by increasing their value, because as a result of this, the utilization rates automatically increase only from January 1 of the last year, while the size of the taxable profit and the amount of tax on the profit remain unchanged during the last year. On the other hand, if the value of the property is depreciating then it is useful to revalue the property. This can help businesses save money on property taxes, as taxes are calculated based on the property's book value. Correspondingly, if the book value of the property decreases, then the absolute magnitude of the tax will also decrease.
Residual value is the original (balance) value of fixed assets, minus depreciation, and the amount of depreciation is determined by the amount of usage behavior of these fixed assets over the period of their service life. In the course of production, the main production assets are subject to physical and moral wear and tear.
Physical depreciation refers to the loss of their consumption value by fixed assets. Physical depreciation occurs regardless of whether fixed assets are being used or idle. The level of physical wear and tear depends on several factors, in particular, the working climate, the intensity and time of actual use, the skill level of employees, the characteristics of the structure and the operating conditions of the equipment, the quality of materials, etc. depends on.
СПИСОК ЛИТЕРАТУРЫ:
1. Law of Turkmenistan "On State Support of Small and Medium Entrepreneurs". - Ashgabat, 2009;
2. Law of Turkmenistan "On Enterprises". - Ashgabat, 2000
