Lazarenko O. Y., Reutskova O. M., Bondarenko N. M.

Oles Honchar Dnipropetrovsk National University


The organization of any business starts with the formation of logistics, lack of which makes it impossible to conduct business enterprises. Relevance of the chosen topic is conditioned by the fact that accounting of fixed assets must ensure control over the efficient use of industrial sites, equipment, machinery, vehicles and other instruments of labor. Note that the awareness of availability of labor and constant monitoring of their effective use are important in the management of production activities of each enterprise. Their well-built audit has to contribute to it.

When comparing the P (S) BU 7 "Fixed Assets" and the Tax Code of Ukraine some contradictions were revealed, namely the fact that the depreciation in accounting happens every month and the tax quarterly. According to PBU 7, p.29 depreciation should be counted monthly, beginning with the month following that in which the fixed asset was put into operation. Depreciation stops, beginning with the month following the month of assets retirement.

The cases when there are depreciation on items that can not be amortized objects on conservation; objects that need to be written off (stolen, etc.), the requirements of paragraphs 23, 29 PBU 7 are violated. As a result expenses of the period are overstated and it leads to data corruption in financial reporting. According to paragraph 23 PBU 7 fixed assets that are under construction, modernization, completion, retrofit and conservation, are not suspended depreciation.

Depreciation stops, beginning with the month following the month of disposal facility. Thus, the amount of over-accumulated depreciation should be deducted from appropriate spending.

An important issue is also the fact that fixed asset must not be completely depreciated but each of its component must be depreciated separately, as it is more correctly and efficiently.

Studying international and national experience some confusion regarding the inter­pretation of certain terms were revealed, for instance as economic benefit. In inter­national standards, this term is more advanced and perfect, it is noted that there is potential for obtaining funds and its equivalents from the assets, usage. Whereas in national standards indicated that the company can benefit only in cash.

In addition, IAS 16 "Property, plant and equipment" does not indicate that objects can not be revalued, while in P (S) 7 "Fixed" indicates that low-value non-current assets and holdings if their depreciation value calculated in the first month of use of the facility at 50% its value, which is amortized and the remaining 50% of the cost, which is amortized in the month of assets withdrawal (the cancellation of the balance) due to non-recognition criteria for an asset or in the first months of use on 100% of the facility.

Analysis of typical business transactions on accounting for assets held for sale. Under the plan accounts for this purpose through 286 "Non-current assets and disposal groups held for sale", but it is a part of the account 28 "Goods", which is used to account for current assets. So we display data assets using account 109 "Other fixed assets".

False statement is the fact that during markdowns or revaluation should reassess the whole group of similar items of property. It may not be rational, so cost of reassessment may not be significant in the background of the whole group. Moreover, reappraisal inappropriate display as income or expense in the period in which there was overestimation. So the fact of the revaluation is necessary to determine the real value of the object, rather than to determine the income / expenditure.

Furthermore, a contradiction was found in the principles of calculation and compliance of income and expenditure. Canceled fixed assets identified during the inventory can not be recognized as income on previously written-off assets and other income of normal activities. Therefore, in our opinion, canceled facilities and equipment in inventory that had previously not been taken into account should be transferred to the balance at fair value with increasing capital investment and equity.