MODERNIZATION OF FIXED ASSETS: THE ORDER OF ACCOUNTING AND TAX ACCOUNTING

Abstract

Relevance of the designated problem consists that the vital issue connected with possibility of effective operation of objects of fixed assets is its modernization as this procedure has impact on taxable base on income tax that is important for the majority of the enterprises.

In article the essence of modernization, reconstruction and repair of objects of fixed assets, and also their order of reflection are given in accounting. On concrete examples authors considered the typical economic operations connected with modernization of fixed assets and also explanations on their registration in primary documents and registers of accounting are given.

This article allowed to reveal a problem of imperfection of the legislation concerning carrying out operations on accounting and tax accounting that generates in the organizations many disputable situations at determination of initial cost of objects of fixed assets, useful services and the applied norms of depreciation.

The material presented in article is based on acting standardly – legislative base (The tax code, Orders of the Ministry of Finance and other documents) taking into account the last changes and additions.