How to correctly reflect the costs of repairs, modernization and reconstruction of fixed assets. How is a major overhaul different from a reconstruction? Building renovation definition

Polishchuk Vadim Igorevich,

Project manager

Overhaul and renovation: Many people misunderstand these terms as synonyms. In fact, this is not the case. There is a significant difference between renovation and overhaul of any building. What it is - will be explained in this material.

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What is overhaul

Overhaul is carried out in construction if it is necessary to restore the characteristics of the facility to the current standards, with the restoration and (or) replacement of any parts of the construction facility.

Definition of overhaul according to the City Planning Code

Overhaul of capital construction objects(with the exception of linear objects) is the replacement and (or) restoration of building structures of capital construction objects or elements of such structures, with the exception of load-bearing building structures, replacement and (or) restoration of engineering and technical support systems and networks of engineering and technical support of capital construction facilities or their elements, as well as replacement of individual elements of load-bearing building structures with similar or other elements that improve the performance of such structures and (or) restoration of these elements (Article 1, Clause 14.2 of the Urban Planning Code of the Russian Federation).

Overhaul of linear objects- this is a change in the parameters of linear objects or their sections (parts), which does not entail a change in the class, category and (or) initially established indicators of the functioning of such objects and in which it is not required to change the boundaries of the right-of-way and (or) security zones of such objects ( Art. 1, clause 14.3 of the Urban Planning Code of the Russian Federation).

Based on the definition, it can be seen that when carrying out major repairs (with the exception of linear objects), the main technical and economic indicators (building area, construction volume, usable area, number of floors) do not change.

Capital construction and linear construction definitions

Capital construction projects include buildings, structures, structures and facilities, the construction of which has not been completed (with the exception of temporary structures, sheds, kiosks and other similar facilities). The objects of overhaul are, for example, residential buildings and their parts (roofs, walls, etc.), apartment buildings and adjoining territories, structures, premises, etc.

Linear facilities, as defined by the City Planning Code, include power lines, communication lines (including line-cable structures), pipelines, highways, railway lines and other similar structures. Overhaul of linear objects includes, for example, overhaul of a road, repair of a bridge and engineering systems.

What refers to the overhaul of buildings and structures

Overhaul is carried out when they are physically worn out and destroyed. It includes work on the restoration or replacement of components of buildings (structures) or entire structures, parts and engineering equipment.

The purpose of the overhaul

The purpose of the exercise is to eliminate the malfunction of all worn-out elements, including partial replacement or reinforcement of foundations, load-bearing walls, frames, roofs and roofs with more durable, economical and maintainable materials.

Overhaul types

Overhaul according to the principle of the quality of the layout, the degree of internal improvement and the technical condition of buildings is subdivided into complex and selective.

Complex overhaul- this is a repair with the replacement of structural elements and engineering equipment and their modernization. It includes works covering the entire building as a whole or its individual sections, which compensates for their physical and functional wear and tear.

Selective overhaul- is a repair with full or partial replacement of individual structural elements of buildings and structures or equipment, aimed at full reimbursement of their physical and partially functional wear and tear.

Related concepts

In the Town Planning Code modernization buildings are interpreted as improving the technical and economic properties and characteristics of the object, carried out by replacing the systems and structural elements of the object with more efficient ones. During the overhaul of capital construction objects, the building can be modernized: improving the layout by dismantling old non-bearing partitions and erecting new ones, re-equipping old engineering networks with new and modern ones. The situation is similar with linear objects. For example, during the overhaul of roads and bridges, the number of lanes for traffic does not increase, indicators of external engineering networks, such as power, pressure, voltage, do not change. But at the same time, it is allowed to replace materials with others with better performance characteristics. For example, replacing cast iron pipes with polypropylene ones, aluminum cables with copper ones, etc.

Technical re-equipment differs from overhaul mainly in the presence of changes in the technological process.

Redevelopment during major repairs is possible only if the structural scheme of the building is changed.

What is reconstruction

There are several meanings of the term "reconstruction" in Russian legislation, incl. in the Tax, Housing and Urban Development Codes.

Definition of reconstruction according to the Town Planning Code

Reconstruction of capital construction facilities(except for linear construction objects) - this is a change in the parameters of a capital construction object, its parts (height, number of floors, area, volume), including superstructure, reconstruction, expansion of a capital construction object, as well as replacement, redevelopment and (or) restoration bearing building structures of a capital construction object, with the exception of replacing individual elements of such structures with similar or other elements that improve the performance of such structures and (or) restoration of these elements (Article 1, Clause 14 of the Urban Planning Code of the Russian Federation). An example of work with capital construction objects is the reconstruction of residential buildings and premises, public buildings, etc.

Reconstruction of linear objects- this is a change in the parameters of linear objects or their sections (parts), which entails a change in the class, category and (or) initially established indicators of the functioning of such objects (capacity, carrying capacity and others) or in which a change in the boundaries of right-of-way and (or) security zones of such objects (Article 1, Clause 14.1 of the RF Urban Planning Code). An example of work with linear objects is the reconstruction of engineering networks (water supply and sewerage systems, electrical, gas, heat communications, etc.).

Interpretation of the concept of reconstruction in various regulatory documents

According to the Tax Code, reconstruction refers to the reorganization of existing fixed assets, associated with improving production and increasing its technical and economic indicators, carried out under the project for the reconstruction of fixed assets in order to increase production capacity, improve quality and change the product range.

Obviously, the definitions of the term "reconstruction" given by the Tax and Urban Development Codes differ significantly. The question arises: which of the definitions should be followed, or does one complement the other? Then it turns out that reconstruction is reconstruction?

However, there is no definition of reconstruction in the Housing Code, while the term “redevelopment” is synonymous with major repairs, in terms of “replacement and (or) restoration of engineering and technical support systems and engineering networks”. It turns out that the interpretation of the Tax Code contradicts the Urban Planning and Housing Codes?

Let's try to clarify. In accordance with paragraph 1 of Article 11 of the Tax Code of the Russian Federation (hereinafter referred to as the Tax Code of the Russian Federation), the institutions, concepts and terms of civil, family and other branches of the legislation of the Russian Federation used in the Tax Code of the Russian Federation are used in the meaning in which they are used in these industries. legislation, unless otherwise provided by the Tax Code of the Russian Federation.

Thus, if products are produced in a building (in other words, if the building in question is for industrial purposes) and this product is taxed, then it is necessary to be guided by the definition from the Tax Code. That is, the reconstruction in this case will be the replacement and (or) installation of equipment for a more advanced one, which will be able to manufacture new products or will increase the volume or improve the quality of products. If it is planned to replace the old, morally and physically obsolete equipment with new, modern, then this will be a technical re-equipment; at the same time, it is allowed to change the production technology, but the increase in production capacity is not allowed and there is no talk about the quantity and quality of products.

Related concepts

During reconstruction, it can also be carried out modernization properties and technical characteristics of buildings, systems and elements. However, do not confuse these concepts, as they are complementary.

The reconstruction of the building is different from technical re-equipment the optional change in the technological process and, on the contrary, the mandatory nature of the replacement (restoration) of load-bearing structures.

Redevelopment during reconstruction is part of the concept of reconstruction of buildings and structures and includes works affecting the position of the load-bearing walls and structures of the building.

Restoration often confused with reconstruction, however, these concepts differ, mainly in that restoration includes work to strengthen and restore buildings and structures that are monuments of history, culture and art.

The reconstruction of houses, abandoned buildings in order to adapt to modern needs is gaining popularity, which is called renovation buildings. For example, the reconstruction and rebuilding of an abandoned factory or factory building with the aim of turning it into an office center.

Differences between reconstruction and overhaul

Overhaul and reconstruction, based on the definitions of the Town Planning Code, differ in the degree of change in the construction object. During the overhaul of buildings and structures, objects return to their original state, suitable for operation; during the reconstruction, changes can be made to the key technical and economic parameters of the construction object.

For example, during the reconstruction of a highway, the category of roads, the width of the carriageway, change, if these are external engineering networks, then their capacity and length change. When reconstructing capital construction facilities, it is necessary not only to eliminate the accumulated physical and moral deterioration, but also to bring the facility to compliance with all applicable rules and regulations.

Most of the buildings being renovated do not comply with all applicable standards, and this is understandable, because often the age of a building is calculated in decades, and the standards change almost every year.

Therefore, during major repairs, some deviation from the current standards is allowed. For example, a decision was made to renovate the roof of a building; at the same time, there is no need to improve the adjacent territory, increase the number of parking spaces, insulate facades, etc. And if it is decided to reconstruct the building, for example, to build an extension or to make an attic instead of an unexploited attic, then it is necessary to bring the entire building to the required current standards, starting from modern architectural solutions, layouts, and ending with the requirements for the energy efficiency of the building.

It is not required to obtain a building permit during major repairs, and the procedure for preparing for construction and putting a building into operation will be much easier, faster and cheaper than during the reconstruction of the building. Permits for the reconstruction of a building are often required by state and local authorities, and the procedure for obtaining permits is time-consuming and laborious. This is due to the fact that during the reconstruction of a house, new construction can be carried out; a very common practice is to add an attic on the roof of a building.

As for the design of major repairs and reconstruction, when carrying out each of the types of work, planning and drafting of the project is necessary. This is due to the fact that construction work in a building or part of a building can somehow affect neighboring buildings in the block. That is why it is important to carry out the work after agreeing with the general plan of the quarter. At the same time, drawing up a project for reconstruction is a more time-consuming procedure and often requires additional approvals of the project assignment and the project for organizing work.

The difference between a major overhaul and reconstruction is well understood by developers, trying with all their might to "get away" from the reconstruction of the building, since the preparation of documents can take more than a year, and in other cases - more than one year. As a result, controversial issues arise between local governments and stakeholders.

In the next article, we will talk about controversial situations that arose during the overhaul of buildings that we had to deal with in practice.

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Is modernization repair or reconstruction? Or is it "the same filling in different candy wrappers" in order to withdraw more money? The renovation was also added. Are they no longer doing repairs at all, just renovations?

The concepts are, of course, related and even overlapping somewhere. But there is a difference between them. Moreover, this difference is fundamental, which would be useful to know not only for contractors in construction. The question should be clear to investors, theater managers, hospital chief physicians, plant directors and many others in this rapidly changing world. Let's try to understand the terms and find suitable examples for them.

Define and compare

With the wording on the Web, as usual, the trouble is: confusion of concepts and cumbersome definitions. We do not want to be mistaken, so we will look for terminology in the regulatory documents of accounting and taxation. The fact is that financiers and tax authorities perfectly understand what fixed assets are. They themselves do not make mistakes with this and do not forgive others. And the objects of repairs, modernizations, renovations, etc., are just fixed assets, that is, buildings of various types.

So, attention: if, as a result of the work carried out, the object functions better or differently (longer term of use, higher power, better quality of use, etc.), then this work refers to reconstruction or modernization.

There is no concept of "repair" in tax and accounting legislation. Great, we conclude that renovation is a job that does not change the purpose of the building and does not add new functions and qualities to it.

Her Highness Purpose

The main criterion for dividing and distinguishing restructuring works is their purpose (the accounting characteristics of fixed assets considered above are in second place in importance).

• The purpose of the repair is to eliminate faults that interfere with the use of the facility. A classic example is the replacement of old water pipes that were leaking at every turn.
• The purpose of the modernization is to update the facility to comply with new technologies, requirements or regulations. The concept of modernization is very broad: you can modernize an army, a theater, a warehouse, a higher education system - practically all areas of activity. We are more interested in the technical modernization of what can be repaired or reconstructed. For the most part, these are structures for various purposes.
• The purpose of the reconstruction is to change the basic parameters of structures in the form of their reorganization. This can be a new layout or an increase in the area of ​​the building. There is a reconstruction "back in the past" to return the structures to their original appearance, something like a conditional "reverse modernization".
• The purpose of the restoration is to return the original appearance and condition of cultural monuments.

Two in one: a new life for elevators and escalators

Despite the differences between modernization and reconstruction, you can often see these words together: "... a large-scale reconstruction with modernization has been carried out ...". So they write in the press and in the documents of state bodies. This is the right combination of concepts. Modernization and reconstruction get along well with each other, they are close "relatives", including renovations.

An example is the frequent situation with the installation of new elevators as part of the reconstruction or major overhaul of a building. The new elevator system is a local technical modernization as part of a general reconstruction.

Most often, engineering systems in buildings undergo modernization: ventilation networks with air conditioning, heat supply, water pipes, escalators, etc. This is not a simple replacement of old technical equipment with new ones. Modernization is always progress, it is new models, technologies or materials.

The big city dilemma and renovation

This extremely interesting hybrid concept has emerged recently. Renovation is a real modern trend and another close relative of renovation. Renovation includes the processes of improvement, reconstruction, modernization and restoration with one condition: maintaining the integrity of the structure.

There are explanations for this, which are associated with the problems of urbanization. This situation has developed in the central regions of many large cities. Builders and architects face a major dilemma. On the one hand, old buildings in the center are difficult to demolish because of their historical value, protests from residents of the city or for any other reason. On the other hand, urban economies need renovated and functionally efficient buildings in the center.

A very high-quality solution was found - reconstruction of old buildings with a change in their purpose and functions. In other words, renovation. This process is complex in nature with the obligatory inclusion of an architectural concept. Urban traditions, considerations of aesthetics, economic calculations, adaptation of houses to modern needs, options for the use of adjacent territories - only some of the issues considered during the development and planning of renovation projects.

One of the features of the renovation is the total modernization of buildings. Sometimes it is difficult to define its boundaries with reconstruction and restoration work. In short, the phenomenon is new, complex and extremely promising. This is a comfortable urban environment.

The Bolshoi Theater is a reconstruction

In 2005, when the Bolshoi Theater restructuring project began, the concept of “renovation” was not yet in use. Therefore, one of the longest and most scandalous projects in the construction of a cultural structure was called briefly and clearly - reconstruction.

The building of the Bolshoi Theater has endured in its lifetime. Who just rebuilt it. Reconstructions and restorations followed one after another, practically from the very beginning of its existence. And only in 2009, after serious preparation, the building was moved from temporary supports to a powerful permanent foundation.

Here is a seemingly example of a typical reconstruction. The work was of an exclusively restoration and restoration nature. It was required to return everything, as it was in the original version of the theater building, to restore its historical appearance. The scope of the work was enormous. Only in the theater building itself there were about three thousand people every day. Outside the theater, a thousand specialists also worked in restoration workshops.

In addition to the restoration of the interiors, two more important tasks were carried out in the project. One of them is to find additional premises in the theater. This was done at the expense of a new underground space.

The second task was the restoration of the unique acoustics of the hall, which was carried out with the invitation of world-class experts and with many sound tests.

Bolshoi Theater: and still modernization

Everything that has been done fits into the concept of reconstruction, no doubt about it. But what about the latest stage technologies that correspond to the highest world standards?

Judge for yourself, now seven lifting platforms are built into the theater stage, each of which has two levels. These platforms can change their position in space as you like, so the stage can take a horizontal position or turn, for example, into steps.

Modern systems for placing equipment for special effects, lighting acoustics are built into the walls of a historic building in the most delicate way. What is the difference between modernization and equipment reconstruction in the Bolshoi Theater project? The fact that the systems for stage rotation, lighting, special effects and acoustics were not a simple replacement of old ones with new ones. This modernization allows the theater to stage modern performances using fundamentally new theatrical technologies.

As for the orchestra pit, it has undergone reconstruction: it has increased the space under the proscenium, now it is one of the largest in the world, accommodating 130 orchestra musicians. The expansion of the underground space also made it possible to open a new concert hall right under the Teatralnaya Square, in the very heart of the center of Moscow, there is another reconstruction.

The differences between modernization and reconstruction in such large-scale projects are blurred, both processes run in parallel and perfectly integrate with other techniques, for example, restoration. This integration of construction processes is a new and progressive trend.

Elbe Philharmonic: ten years of modernization and reconstruction

The Hamburg Philharmonic is the main rival of the Bolshoi Theater in terms of scandalousness, high cost of the project and long-term construction.

In this ambitious project, the differences between modernization and reconstruction are blurred again. The building of the new concert hall was erected on the roof of an old warehouse on the banks of the Elbe. The place is also very noticeable. It is a river port on the Elbe, a rough industrial landscape. This is a classic reconstruction of a building site (warehouse).

Despite the fact that the building is located in the midst of an operating river port, the theater is perfectly soundproofed. For this, a special gap was made above the warehouse with new generation sound-insulating materials. This also applies to the renovation process.

The steel and glass superstructure above the river warehouse weighs no less than 78 thousand tons. The area of ​​the glass facade is 16 thousand meters. The height of the building is 110 meters. The dimensions and scale of the Philharmonic are unique. The main hall can accommodate 2,100 spectators, and the chamber hall - 550 listeners. There is also a luxury hotel, several restaurants, conference rooms, etc. You can live in this building. All you need to do is buy one of the forty-four duplex apartments in the western part of the building.

The Great Concert Hall is a "vineyard on the slope of the mountains." The terraces around the central stage rise along with the auditoriums as they move away from the center.

Now attention! When creating this most interesting project, the architects had a main goal. It sounded like this: to breathe life into the neglected and unjustly forgotten industrial area of ​​Hamburg on the Elbe. The city needed not just a new concert hall, but a unique multipurpose cultural complex.

Before us is again a hybrid of construction processes. It makes no sense to understand the differences between modernization and reconstruction. The large-scale urban concept included all types of work. We see integration again.

Modernization of the KAMAZ plant

Even if where and where modernization is carried out in its pure form, it is in industrial enterprises. It is understandable, at the head of the issue is the production efficiency of modern products, which will never be high without new technologies and equipment.

Factory modernization is a unique project “301.301. Auto-assembly production ". We are talking about preparing the production of a new heavy-duty truck, which is part of a whole project of reengineering factory processes. Modernization is carried out in all workshops with a deadline for completion in early 2019.

The goal of KAMAZ is ambitious - to raise the quality of products to a fundamentally new level. And without serious and well-thought-out modernization, it makes no sense to even think about it.

As a result of the changes, an automated control system will appear, and all operations of the assembly shop will be automatically recorded in the system, in order to then generate a passport for a new generation car - an electronic one. The new system of total monitoring and reconstruction of networks will reduce the percentage of customer claims and, which is important, will create a basis for corrective actions and work on errors.

Zaryadye and new generation urbanism

Pay attention to the name of the international competition for the future famous Moscow park “Zaryadye: landscape and architectural concept of the park”. The city authorities decided to build a modern park with a developed infrastructure on the site of the huge demolished Rossiya Hotel.

At first glance, the project resembles reconstruction again: demolition, rebuilding, resizing and area changes, giving new functions, etc.

But before us is again a concept, and not a separate construction project. The main idea of ​​the winning project was to organize a new space according to the rules of natural urbanism. This is a new trend in urban planning about the proximity of nature and the urban environment, resulting in a new type of public space.

All objects of the park are unique and worthy of a detailed description. But another important feature of the new Moscow facility is the reconstruction of adjacent streets and squares in the city. Zaryadye seems to attract comfort for people and improvement in general. Congestion, chaotic parking lots, narrow pedestrian zones - everything is gradually turning into a civilized urban environment of a new generation.

Conclusion

It seems that for modern urban projects related to the remodeling of old buildings, it makes no sense for a long time to figure out how the reconstruction differs from the modernization of a house. The most optimal rework option is a thoughtful combination of these processes. And if we are talking about large-scale restructuring, including changes in infrastructure, then they are carried out in accordance with the concept - the main idea. Then the differences between modernization and reconstruction will be a purely internal matter.

The trend of combining concepts in construction alterations also applies to industrial modernization. In its pure form, it is not found even in factories. Do you want to improve the quality of the produced cars? Upgrade the conveyor and remodel the space for the comfort of your staff, because with one new conveyor you won't get far.

The future belongs to complex projects, united by broad concepts and including all possible types of rework.

The modernization of industrial enterprises, houses and structures is often confused with their reconstruction. Various objects with any purpose can be subjected to such a procedure, and a change in qualitative characteristics does not always define the concept. Let's try to figure out what is the difference between these categories and how significant it is.

In the past, most organizations simply chose a useful life that was tax-friendly or seemed reasonable on initial recognition, and then never gave further thought to adjusting that estimate of useful life in future periods, regardless of a change in intention or circumstance. Likewise, residual values ​​are not often, if ever, updated. But perhaps worst of all, at least from the point of view of this article, was the nasty habit of companies recognizing groups of assets as separate items in their asset registers.

Definition

Modernization- this is the renovation of the facility to bring it in line with modern standards, criteria, requirements. You can modernize the education system, production, equipment or a car.

Reconstruction- this is a purposeful activity to change the parameters of buildings and structures, individual elements of objects (height, number of storeys, etc.), the introduction and renewal of engineering networks.

Worse, fixed assets are often not one of the most essential elements of the statement of financial position and often lead to audit qualifications. This article focuses on how to reconstruct the asset ledger as a result of inappropriate grouping of items, lack of sufficient supporting documentation, or unreported assets.

Basically, this means that no two assets, even if they are identical, must have exactly the same useful life and residual value. Therefore, the useful life of the asset may be shorter than the economic life. Estimating the useful life of an asset is a matter of judgment based on the experience of a legal entity with similar assets. This does not prohibit grouping of similar assets until the estimated useful lives of these assets are the same.

Comparison

Thus, reconstruction is either the restoration of the initial state of the object, or its radical reconstruction. This set of measures can be implemented only in construction and architecture. With regard to this industry, the reconstruction is aimed at changing the technical indications (improving the layout of the building, increasing the total area, restoring the original appearance).

Auditors are sometimes wrong and usually assess the validity of an asset's useful life and its residual value by referring to the condition of the asset, expert advice, past trends, etc. in such cases, referring to this type of information for audit purposes may be a suitable proxy to determine management's true intentions. Renovation Most would agree that it would be preferable to avoid a situation like the one described in the previous paragraph by actively addressing the issue of registering fixed assets well before the next inspection.

Modernization - renovation of a structure due to its obsolescence. Immediately before these events, it no longer complies with the norms and rules: engineering communications, the level of thermal insulation, and safety are outdated. In the industrial sector, reconstruction is the restoration of industrial complexes that did not perform their functions for a long time. Modernization - changing existing facilities in order to establish the production of modern products and increase the competitiveness of a particular plant, factory.

That being said, one of the first things that an organization must determine is the degree of “damage” in the asset register. So what are the indications of what this could mean, what could mean a major overhaul of the asset register? There are vague descriptions of assets that are likely to represent groups with individually significant assets. There are a number of assets that are under the control of the entity, but are not included in the ledger of property, plant and equipment. There are assets that are still in the asset register, that are depreciated, that are no longer used.

Conclusions site

1. The main goal. The purpose of modernization is a radical reconstruction of the facility, the introduction of new systems and networks that will make it modern. The purpose of the reconstruction is to change the characteristics of a building, an industrial complex, and improve its qualities.
2. Reason for holding. Modernization is carried out due to the fact that the object is outdated, and reconstruction - due to general wear and tear.
3. The state of the object. After the reconstruction, the quality of the object improves, the economic and technical characteristics increase, or the original state is completely restored. After modernization, the functions of the object can be radically changed.

Neither PBU 6/01 "Accounting for fixed assets", nor in other accounting documents disclose modernization, reconstruction, completion or additional equipment. However, the Tax Code provides definitions of such costs. Completion, retrofitting, modernization include work caused by a change in the technological or service purpose of fixed assets, increased loads or other new qualities (clause 2 of article 257 of the Tax Code of the Russian Federation). Reconstruction includes the reorganization of existing facilities associated with the improvement of production. The purpose of the reconstruction is to increase production capacity, improve quality and change the product range.
That is, if, as a result of work, the initial characteristics change or new ones appear, then we can talk about the costs of the first group. They increase the initial cost of the item of fixed assets (clause 14 PBU 6/01). At the same time, paragraph 42 of the Methodological Instructions states that these costs must be accounted for on the account for accounting for investments in non-current assets (Methodological Instructions for the Accounting of Fixed Assets, approved by order of the Ministry of Finance dated November 13, 2003, No. 91n).
When the work is completed, the amounts accumulated on the account of investments in non-current assets are written off to the debit of account 01 "Fixed assets". However, they can be accounted for separately on fixed asset accounts. In this case, a separate inventory card must be opened for the amount of costs incurred.
The firm then writes off these costs through amortization. We will describe how this is done just below in the section "Depreciation of Reconstructed or Modernized Fixed Assets".

In a car analogy, any of the above, depending on the severity of the problem, can be like looking for oil in your water tank - and you don't need to be a mechanic to know what that means. How to fix it So you've identified the problem, and you realized that it requires more minor repairs or a quick fix. You need a major overhaul - a complete reconstruction of the asset register. If there are such assets, it means that you have serious mistakes from the previous period.

What is the difference between repair and modernization

While it can be fairly easy to argue that a revaluation model would achieve this, people often do not understand the problems this creates in the future. Therefore, we have excluded revaluations as a possible option to address historical errors in the asset register. This will include the following steps.

Difference between renovation and modernization and reconstruction
Why is it important to distinguish between the two? The point is that they are differently recognized for tax purposes. The costs of reconstruction or modernization of the enterprise must be included in the initial cost of the object of fixed assets (Art. 257 of the Tax Code of the Russian Federation). That is, such amounts will be written off through amortization, and this process takes years. At the same time, the costs of repairs (including capital) reduce the income tax base already in the current reporting period (clause 1 of article 260 of the Tax Code of the Russian Federation). Thus, repairs are usually more profitable for organizations than reconstruction.
Officials approach this problem in the following way. Let's demonstrate it using a computer as an example. In a letter dated December 1, 2004 No. 03-03-01-04 / 1/166, the Ministry of Finance expressed their point of view on what is considered to be an upgrade and what is a computer repair. The aforementioned letter explained that repair costs can only include costs incurred when replacing out-of-order elements of computer equipment and caused by the need to maintain the computer in working order. But the replacement of individual elements of the computer with new ones due to obsolescence cannot be considered as a repair of the computer and is its modernization, which increases the initial cost of the fixed asset.
Thus, financiers put the procedure for recognizing costs - as the cost of repair or modernization - depending on the reason for replacing the computer elements. If the reason is not a breakdown, but obsolescence, and the organization replaces a completely still working part of the computer (for example, a still not broken, but already obsolete monitor) with a more modern one (for example, a CRT monitor for a liquid crystal monitor or one LCD monitor for other LCD monitor with a larger diagonal), such operations should be regarded and accounted for as upgrades.
A similar opinion that replacing individual computer elements with new ones due to their obsolescence cannot be considered as computer repair and is its modernization was expressed in a later letter from the Ministry of Finance of Russia dated November 14, 2008 No. 03-11-04 / 2/169. And the letter of the Ministry of Finance of Russia dated November 6, 2009 No. 03-03-06 / 4/95 again said the same thing - that, in the opinion of financiers, the replacement of a morally obsolete monitor by a budgetary institution with a new one is precisely a modernization, not a repair.

We confirm the repair purpose of the work

It is important not to skip this step as it will inform the staff involved in the remaining steps on how to classify and make up assets, which ultimately leads to the disclosure of financial statements. It is especially important to educate the personnel involved in the enumeration on how to identify and record significant components of assets separately. This requires good policy decisions and planning on the part of the management, while keeping in mind the ultimate goal of allocating different useful lives for different components.

EXAMPLE
The organization replaced the processor in the computer installed in the accounting department. After replacing the processor, the performance of the computer increased. At the same time, the computer could work with the old processor - it did not fail, it was simply replaced with a more advanced one. Therefore, we are talking about modernization. These amounts increase the initial cost of the computer.
But replacing a burned-out monitor will be considered a computer repair. Because without such a replacement, it cannot perform its functions. This means that the funds spent on the purchase of a new monitor can be written off entirely to expenses in the month when such a replacement happened.

In cases where useful lives are expected to be the same, there is no need to compile a separate asset in part. Fill in the "new" asset register with all the information obtained in step 2 above. An attempt was made to link assets in the existing "old" asset register to the new asset register. It is helpful to try to make this reference as the most accurate source of historical information for the assets in the new ledger, any source documentation relating to its original acquisition.

It is likely that the original documentation, if any, would have been linked to the old register in some way, and it makes sense to use any such references if they exist. It is at this point, assuming that the component and location information was displayed correctly in step 2 above, that the inappropriate asset grouping can be eliminated. Some refer to the fixes in this regard as “splitting” their assets. It is also often the stage where actors erroneously enter the realm of “revaluation of their assets”; the result is usually that the new combined carrying amount of the split assets is much higher than the original cost of the group.

I must say that tax authorities often qualify repairs as reconstruction. A similar case was considered by the FAS of the Volgo-Vyatka District in its resolution dated January 11, 2006 No. А43-7220 / 2005-30-310. During the audit, the tax authorities found that the organization had illegally taken into account the costs associated with repair and construction work in the building. The inspectors considered that in this case, in fact, its reconstruction was carried out, in connection with which the disputed costs could not be included in expenses at a time, but were to be attributed to an increase in the initial cost of fixed assets. On this basis, the tax authority assessed additional income tax to the taxpayer in connection with the understatement of taxable profit in the disputed tax period by the amount of overstated costs.
The tax authorities demanded to pay arrears, penalties and fines.
The court did not support the officials. According to subparagraph 2 of paragraph 1 of Article 253 of the Tax Code of the Russian Federation, the costs associated with production and sale include the costs of maintaining and operating, repairing and maintaining fixed assets and other property, as well as maintaining them in good (up-to-date) condition.
In accordance with clause 1 of Article 260 of the Tax Code of the Russian Federation, expenses for the repair of fixed assets made by the taxpayer are considered as other expenses and are recognized for tax purposes in the reporting (tax) period in which they were incurred in the amount of actual costs. This legal norm does not contain any restrictions on the inclusion in the tax base of expenses for the repair of fixed assets, depending on the type of property, the reasons that led to the repair, changes in the functional purpose of the premises.
According to paragraph 2 of Article 257 of the Tax Code of the Russian Federation, the initial cost of fixed assets changes in the event of completion, retrofitting, reconstruction, modernization, technical re-equipment, partial liquidation of the relevant facilities and on other similar grounds, the concepts of which are given in this article.
The costs of such work change (increase) the initial cost of fixed assets and reduce taxable profit in the amount of accrued depreciation.
Thus, from the above legal norms it follows that only the costs of repair work are subject to attribution to expenses. Renovation costs are charged to property, plant and equipment and are expensed through depreciation and amortization.
As evidenced by the materials of the case, the taxpayer attributed to the expenses taken into account when taxing profits, the costs of repairing a fixed asset - a building necessary for the taxpayer's activities (renting out premises).
The court, on the basis of a comprehensive, complete and objective study of the evidence presented in the case and their assessment in aggregate, established that the construction and installation work carried out by the taxpayer was repair work.
The circumstances established by the court do not contradict the case materials.
Consequently, the expenses incurred by the taxpayer for the repair of fixed assets, which are justified and documented, are rightfully attributed to expenses that reduce taxable profit.

Criteria for classifying OS restoration work as repair or modernization

Once again, it is emphasized that this result is not appropriate unless other previously unrecorded assets were included in the group. Assuming there are no additional assets, an arbitrary allocation of the value of the original group to the underlying split assets is more appropriate, without changing the total value, the individual assets have been added to be added together.

A suitable basis for this allocation should be used, and in practice, determining the amortized replacement cost of individual assets as a percentage of the group's total amortized replacement cost will generally be an acceptable method. A register of property, plant and equipment showing the respective dates of acquisition and their value, depreciation, if any, the date of any revaluation and revaluation, the respective dates of any retirements and any consideration received in relation to them: provided that in respect of property, plant and equipment acquired prior to commencement under this Law, the company may, as of the end of the first financial year after the said start, carry out an inventory of all fixed assets and make a realistic allocation of the total value of fixed assets as shown in the financial statements at that date for the inventory of assets.

Modernization of decommissioned property, plant and equipment
Often there are situations when an already decommissioned fixed asset has to be modernized. Let's say you have upgraded your computer that has been completely depreciated. Or they have improved a “low-value” fixed asset, which is not a depreciable property, and the cost of which is written off as an expense right away.
The question arises, what to do if the decommissioned fixed asset is renewed with an initial cost of no more than 10 thousand rubles? After all, it may happen that at the end of the modernization, its cost will exceed the specified value. The question arises: should we include it in fixed assets at replacement cost and depreciate in accounting and tax accounting?
Let's start with tax accounting. Everything is simple here. For tax purposes, all property that has been in service for more than a year is divided into depreciable and non-depreciable. The concept of "fixed asset" is absent in the Tax Code. But it corresponds to the term "depreciable property", the value of which is repaid by depreciation over its useful life.
Objects worth not more than 10 thousand rubles do not belong to depreciable property (clause 1 of article 256 of the Tax Code of the Russian Federation). Their cost is included in the composition of material costs in full at the time of commissioning.
So it turns out that with the improvement of the property already written off for expenses, the modernization of the depreciable property does not take place, since such property itself did not exist initially. Consequently, the costs of modernization can be written off at a time as other costs associated with production and sales (subparagraph 49, paragraph 1 of article 264 of the Tax Code of the Russian Federation).
Accounting is not so simple. The fact is that the written off property, the value of which does not exceed 20 thousand rubles, does not cease to be the main asset. In accounting, in contrast to tax accounting, it is first determined whether the acquired property meets the criteria for a fixed asset (they are given in paragraph 4 of PBU 6/01) or not. And only then the issue of depreciation is decided. Thus, property that meets the requirements of PBU 6/01 is a fixed asset regardless of its value. Moreover, having written off its value from the balance sheet, the accountant is obliged to ensure the safety and control of the written off fixed assets. To do this, inventory cards are set up for such a fixed asset, responsible persons are appointed, etc. That is, the actually written off fixed assets are recorded at zero cost.
And here the question arises: is it necessary to include the costs of upgrading a decommissioned fixed asset in its initial cost, albeit zero?
On the one hand, since the fixed asset has been written off, and there is no need to restore its value in accounting. Otherwise, you will have to increase the tax base when calculating property tax. And even in this case, the difference between tax and accounting cannot be avoided.
But, on the other hand, after the modernization of the fixed asset we have on the balance sheet, we need to increase its cost. It is clear that in this case it is not necessary to restore the already written-off value of the fixed asset. The new cost after modernization will consist of the costs incurred to improve the facility. On the basis of the act of acceptance and delivery of the fixed asset after the modernization, the useful life is established and from that moment depreciation is charged.

After exhausting all of the asset tracking options in the original documentation, the remaining assets must be assigned in a specific way. As explained in step 5, some assets have already been allocated an estimated historical cost by simply dividing the total value of the grouped items in the old asset register. However, there are very often cases when historical cost information is completely unavailable, and the only realistic option that does not deviate from impracticability is to determine the appropriate proxy for the historical cost of each remaining asset.

Depreciation of Reconstructed or Modernized Fixed Assets
So, the costs of reconstruction and modernization increase the initial cost of the fixed asset (clause 2 of article 257 of the Tax Code of the Russian Federation). As for accounting, in accordance with paragraph 27 of PBU 6/01, the cost of modernization increases the initial cost, as a result of modernization and reconstruction, the originally adopted standard performance indicators (useful life, capacity, quality of use, etc.) are improved (increased). ) object of fixed assets.
So, now let's figure out how to calculate depreciation on fixed assets that have undergone modernization. Several options are possible here.
Option 1. In this case, the cost of modernization (or reconstruction) is added to the initial cost of the object of fixed assets. And the result is divided by the total useful life of the property. This option is offered by officials from the Federal Tax Service (see letter dated March 14, 2005 No. 02-1-07 / 23). The letter of the Ministry of Finance of Russia dated January 16, 2008 No. 03-03-06 / 1/8 also states that if a building is accounted for as a single object of fixed assets, then during the reconstruction of its part, depreciation is not charged throughout the building until the end of the reconstruction period. Meanwhile, it turns out that the company will be forced to write off the renewed fixed asset much longer than it assumed when it was taken into account - during its service life. And there will be differences between accounting and tax accounting.
Option 2. However, the tax authorities' approach to this issue is debatable. The fact is that the Tax Code of the Russian Federation does not offer a formula for calculating depreciation in the event of reconstruction or modernization (the one in paragraph 4 of Article 259 is used when a new object arrives). On the basis of clause 7 of Article 3 of the Tax Code of the Russian Federation, all ambiguities and contradictions in the legislation are interpreted in favor of the taxpayer. Therefore, in our opinion, the company can use the calculation algorithm that is used in accounting. Namely: the amount of monthly depreciation is obtained by dividing the residual value of the object, taking into account the cost of modernization (or reconstruction) work, by the remaining useful life of the fixed asset.
In addition, we note that there are letters from the tax authorities in which they indicate that if part of the premises in the reconstructed building continues to be leased, then depreciation on this part of the building can continue to be charged (letters from the Federal Tax Service for Moscow dated September 29, 2009 No. No. 16-15 / 100988, dated June 27, 2008 No. 20-12 / 060985).
Let's give an example, in which we will consider both options for calculating depreciation.

Therefore, a sound approach based on good practice needs to be formulated. In the author's opinion, it is prudent to consider applying these techniques to asset registry recovery instead of any better solution. It is also likely that the entity will have access to cost replacement information in the form of quotes from suppliers and capital budgets. A key assumption in this regard is the fact that the old asset is still in use and that it allows the entity to avoid buying a new, possibly more modern replacement, which implies that the issue of the existing asset is similar in value to the brand new asset if it were already the same age and condition.

EXAMPLE
The organization has modernized the property, plant and equipment. Its initial cost is 3,024,000 rubles, and its useful life is 72 months. The amount of monthly depreciation was 42,000 rubles. (3,024,000 rubles: 72 months). The facility had been in operation for 12 months prior to modernization. Consequently, during this time, depreciation was accrued equal to 504,000 rubles. (42,000 rubles x 12 months).
The services of the contractor who carried out the modernization cost the organization 600,000 rubles. without VAT. The modernization was carried out over a period of 14 months and no depreciation was charged at that time.

However, another obstacle will be that the company does not know how long some of the old assets have been in use. This is especially the case when, for example, the machines have been in use for such a long time that no one in the organization has any recollection of when it was acquired, and all records of its acquisition have been lost. This phenomenon is more common in public sector organizations such as municipalities and is associated with many factors beyond the scope of this article.

The only way to overcome this hurdle is to determine appropriate age assumptions for the various asset types based on relevant metrics such as appearance, output, downtime, and expert judgment. If all else fails, it may be more appropriate to try to place the asset's value based on future potential income.

Option 1. After modernization, the monthly depreciation amount will be equal to 50,000 rubles. ((3,000,000 rubles + 600,000 rubles): 72 months). Residual value of the object including repairs - 3,096,000 rubles. (3,000,000 - 504,000 + 600,000).
Now, in order to completely write off the value of the fixed asset, you need to depreciate for another 62 full months (3,096,000: 50,000).
At the same time, only 60 months remain until the end of the initial period of use (72 - 12).
It turns out that the organization will have to depreciate the fixed asset for an extra 2 months (62-60).

In other words, the new asset ledger should be reflected as if it was always in place as the opening balance of the earliest comparisons. If, in the face of a large-scale revamp of the asset register, it is strongly recommended that the auditors of the organization are actively involved and informed about the process, especially in cases where significant costs will be incurred in an attempt to make corrections, Disagreements about approach and assumptions can be addressed in a timely manner.

Too often, organizations do not have the skills or capabilities to facilitate asset ledger reconstruction and must use specialized service providers. In such cases, it is even more important to agree in advance on the methodology and approach to be followed, as interpretations and understanding may differ between the entity, the service provider and the auditors.

Option 2. Depreciation is charged over the remaining useful life of 60 months.
The monthly depreciation amount will be 51,600 rubles. ((3,000,000 rubles - 504,000 rubles + 600,000 rubles): 60 months)

There is one more question that I would like to draw your attention to. The question is whether it is necessary to suspend the accrual of depreciation on the reconstructed object of fixed assets. It all depends on how long it is planned to carry out work to improve the property. If initially no more than 12 months are allotted for modernization, then there is no need to interrupt depreciation. But if the work has been delayed, then the accrued amounts must be excluded from expenses. It does not matter whether the object was used all this time or not.
A fixed asset that has been under reconstruction or modernization for more than 12 months should be excluded from the depreciable property. And this is no longer a right, but a duty of the organization. This is spelled out in paragraph 3 of Article 256 of the Tax Code of the Russian Federation.
There is a danger that reconstruction (modernization) work may be delayed. That is, say, initially, an organization that continued to calculate depreciation assumes that it will meet the deadline. However, for various reasons, it may not fit into it. In this case, the depreciation charge is illegal. And the tax base will have to be recalculated.
To prevent this from happening, you need to break down the reconstruction work into stages, each of which does not exceed 12 months. In this case, it is necessary to provide for time intervals between the stages. For example, first, the first floor of a building is being reconstructed, and after a while, the second one comes. Of course, in practice, it is not necessary to interrupt the work, this is shown only on paper. For example, in the design and estimate documentation, acts of work performed and orders of the head of the company.

When there is a defect in the hard disk, there are many scenarios in which repair work can only be performed by a laboratory with the appropriate equipment. First of all, it is necessary to determine the causes of the malfunction or failure of the hard disk and an overview of the overall picture of the damage.

After a hard drive crash or severe shock, we usually deal with two types of damage. The actual salvage of the stored data on the faulty hard disk thus always follows a successful repair. However, this is only a means to an end.

Many accountants are very often faced with the problem of reflecting the cost of repairing equipment, buildings and other fixed assets. On the one hand, it is beneficial for an organization to reflect these expenses as repairs, since this will allow to write off expenses in the current period both in accounting and in tax accounting. On the other hand, there are certain risks and claims from the tax authorities: these expenses can be qualified as modernization and reconstruction of fixed assets, and subsequently additional taxes may be charged on them.

Modernization and reconstruction: features of reflection in the organization's accounting

First, let's figure out what repair is, and consider the basic concepts associated with the repair of fixed assets (OS).

Under renovation means a complex of construction work and organizational and technical measures to eliminate physical and moral deterioration, not associated with a change in the main technical and economic indicators of the building.

According to clause 6 of PBU 6/01, the unit of accounting for fixed assets is an inventory item.

Inventory object an object with all fixtures and fittings is recognized, or a separate structurally separate item designed to perform certain independent functions, or a separate set of structurally articulated items that are a single whole and intended to perform a certain work.

If one object has several parts, the useful lives of which differ significantly, each such part is accounted for as an independent inventory object. According to the position of the Ministry of Finance of Russia (letter dated August 27, 2008 No. 03-03-06 / 1/479), this general rule is also valid in the tax accounting of fixed assets.

As a general rule, for work on modernization includes work caused by a change in the technological or service purpose of equipment, buildings, structures or other object of depreciable fixed assets, increased loads and (or) other qualities (Article 257 of the Tax Code of the Russian Federation).

Thus, modernization is an improvement, improvement, updating of an OS object, bringing it in line with new requirements and norms, technical conditions, and quality indicators.

Now let's take a closer look at what work is being performed in order to reconstruct objects of fixed assets.

According to the Tax Code of the Russian Federation reconstruction- this is the reorganization of fixed assets, which is associated with the improvement of production and an increase in its technical and economic indicators. The reorganization is carried out according to the project for the reconstruction of fixed assets in order to improve the quality and change the product range, as well as increase production capacity (clause 2 of article 257 of the Tax Code of the Russian Federation). In other words, the work aimed at the reconstruction of the object should change the technological or service purpose of the object, improve it, give it new functions (Resolution of the Federal Antimonopoly Service of the Moscow District of February 3, 2009 No. KA-A40 / 96-09).

It follows from this definition that only those works that change the technological or service purpose of this object, improve it, and give it new functions are considered work aimed at the reconstruction of an OS object.

In accordance with the Tax Code of the Russian Federation under technical re-equipment means a set of measures to improve the technical and economic indicators of environmental facilities or their individual parts based on the introduction of advanced equipment and technology, mechanization and automation of production, modernization and replacement of obsolete and physically worn out equipment with new, more productive ones.

The main differences between these definitions are shown in the table.

Table. Distinctive features of modernization, reconstruction and technical re-equipment

Name of works	Sign
Completion, additional equipment, modernization	The work was caused by a change in the technological or service purpose of the object of depreciable fixed assets, increased loads and other new qualities
Reconstruction	The reorganization of existing fixed assets is associated with the improvement of production and an increase in its technical and economic indicators, is carried out according to the project for the reconstruction of fixed assets in order to increase production capacity, improve the quality and change the product range
Technical re-equipment	A set of measures to improve the technical and economic indicators of fixed assets or their individual parts based on the introduction of advanced equipment and technology, mechanization and automation of production, modernization and replacement of obsolete and physically worn out equipment with new, more productive

The main distinguishing feature of the works indicated in the table is an increase in the technical and economic indicators of environmental facilities.

In turn, the cost of repairing fixed assets is the cost of systematically preserving objects from premature wear and tear and maintaining them in working order.

Thus, we can conclude that the main difference between repairs and modernization, reconstruction, technical re-equipment is that when performing repairs there is no change in the main technical and economic indicators of objects, and with modernization, reconstruction and technical re-equipment, these indicators are improving.

Example 1. The organization has a registered computer. The system unit is out of order. By decision of the management, a new system unit was purchased and installed, similar to the failed one. These costs are classified as overhaul costs because the organization will disassemble the computer and replace the broken system unit with a new one.

Repair work execution

To register the costs of performing the repair of a fixed asset, the person in charge must prepare the following set of documents:

1) act of inspection of the fixed asset or its components. To justify the cost of repairs, the specialist in charge of the technical condition of the OS must draw up an inspection report for the fixed asset and fix the identified deficiencies in it;

2) defective statement. Based on the OS inspection report, the technician draws up a defective statement, where he indicates which elements need to be replaced in order to bring the object into working condition. Based on the defective statement, an estimate of the repair costs is drawn up;

3) an order to carry out repairs and a cost estimate approved by the head of the organization.

Registration of modernization works

The primary documents confirming the implementation of works on the modernization of facilities are, in particular:

• schedule for the planned work;
• cost estimates;
• contracts and work orders;
• acts of work performed;
• accounts;
• waybills and other documents.

The release of materials for repair, reconstruction and modernization is carried out on the basis of the following primary accounting documents:

• waybills;
• vacation requirements;
• limit fence cards, etc.

Registration of movement of fixed assets

For registration and accounting of acceptance and transfer of fixed assets from repair, reconstruction, modernization, an act of acceptance and delivery of repaired, reconstructed, modernized fixed assets (form No. OS-3) is used.

This act must be signed by an employee of the enterprise authorized to carry out the acceptance of fixed assets, after which the act is transferred to the accounting department of the organization.

If the repair, reconstruction and modernization was carried out by a third-party organization, then the act is drawn up in two copies (one for each of the parties) and signed by both parties. In the future, the act is certified by the chief accountant (accountant) and approved by the head of the organization or a person authorized to do so.

After the approval of the act by the head of the organization or a person authorized by him, the act is transferred to the accounting department. In turn, the accounting officer enters the data of reconstruction, modernization in the inventory card of the fixed asset accounting object (form No. OS-6).

The inventory card (form No. OS-6) contains Section 5 “Changes in the initial cost of an item of fixed assets” and Section 6 “Repair costs”. Section 5 reflects the type of operation (reconstruction, completion, additional equipment, partial liquidation, modernization), as well as a document confirming the operation. The name of the document, number, date and amount of costs in rubles are also indicated.

Reflection in the accounting of expenses for repair and modernization

The cost of fixed assets, in which they are accepted for accounting, is not subject to change, except for cases established by the legislation of the Russian Federation (clause 14 of PBU 6/01).

Thus, a change in the initial cost of fixed assets is allowed in cases of completion, additional equipment, reconstruction, partial liquidation and revaluation of objects.

Repair costs in accounting and tax accounting are written off at a time to the cost of production as expenses related to production and sales.

The cost of upgrading property, plant and equipment increases the initial value of the assets.

Example 2. The organization carried out the repair of the failed fixed asset, the cost of the parts used for the repair amounted to 1,500 rubles. In the same period, spare parts that were superior in technical parameters to the previous ones were installed on another main vehicle. The cost of new components was 2500 rubles.

Expenses are reflected in the accounting as follows:

D 10 “Materials” - K 71 “Settlements with accountable persons” - 1500 rubles. - the cost of the parts purchased for repair is reflected;

D 10 - K 71 - 2500 rubles. - reflects the cost of parts purchased for the modernization of equipment;

D 26 "General expenses" - K 10 - 1500 rubles. - reflects the cost of parts used to repair the object;

D 08 "Investments in non-current assets" - K 10 - 2500 rubles. - reflects the cost of parts used to upgrade the facility;

D 01 “Fixed assets” - K 08 - 2500 rubles. - the cost of the fixed asset is increased by the amount of the cost of modernization.

Extension of the useful life of a fixed asset

According to the provisions of clause 20 PBU 6/01 and Art. 258 of the Tax Code of the Russian Federation, during modernization, it is possible to increase the useful life of a fixed asset after the date of its commissioning, if after reconstruction, modernization or technical re-equipment of such an object, an increase in its useful life has occurred.

In accordance with clause 20 of PBU 6/01, the useful life of a fixed asset is determined based on:

• from the expected life of this item in accordance with the expected performance or capacity;
• expected physical wear and tear, depending on the operating mode (number of shifts), natural conditions and the influence of an aggressive environment, the repair system;
• regulatory and other restrictions on the use of this property (for example, the lease term).

Example 3. The organization has a fixed asset on its balance sheet (useful life - 37 months). The fixed asset belongs to the third depreciation group with a useful life of 3 to 5 years. The OS has been in operation for 3 years, the remaining useful life is 1 month.

By the decision of the management, the equipment was modernized. The expert commission, which accepted the equipment after the modernization, concluded that its useful life increased by another 1 year.

The remaining cost of fixed assets, taking into account the increase in the amount of expenses for modernization, will be written off to the cost of production through depreciation deductions over the useful life of the object, namely, within 1 year.

However, one should not forget that an increase in the useful life leads to an increase in the amount of property tax and an increase in the amount of income tax due to a decrease in the amount of depreciation charges.

It is also important to remember that an increase in useful life can be realized only within deadlines established for the depreciation group in which such a fixed asset was previously included.

Suppose that in the situation described in example 3, the commission decides to establish a new useful life of the fixed asset for 6 years. Due to the fact that the useful life for objects included in the third group is maximum 5 years, increasing it to 6 years for this object will be illegal.

The useful life of the fixed asset does not change

After the modernization carried out, sometimes there is no increase in the useful life of the OS. In this case, depreciation for the object continues based on the previous mechanism for calculating depreciation, until the full repayment of the changed initial cost based on the remaining useful life of this object (letter of the Ministry of Finance of Russia dated November 3, 2011 No. 03-03-06 / 1/714) ...

Calculation of the depreciation rate, if the useful life of the object is not increased

Accounting. A change in the initial cost of an item of fixed assets, regardless of whether the useful life of this item will be revised, leads to a change in the depreciation rate for this item of fixed assets.

Accrual of depreciation after reconstruction or modernization is based on the residual value of the object and the remaining useful life (taking into account their increase) (clause 60 of the Methodological Guidelines for accounting for fixed assets, approved by order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n).

Example 4. The organization has completed the modernization of the asset.

The initial cost of the fixed asset was 210,000 rubles. The useful life is 3 years. At the time of the completion of the modernization, the main asset had been in operation for 2 years. Modernization costs amounted to RUB 50,000.

Thus, the residual value of fixed assets, on the basis of which depreciation will be charged in the remaining year of the useful life, will be 120,000 rubles. ; the monthly depreciation amount will be equal to 10,000 rubles.

Tax accounting. According to paragraph 2 of Art. 259 1 of the Tax Code of the Russian Federation, the amount of depreciation charged for a fixed asset for a month is determined based on:

• from its original (replacement) cost;
• the depreciation rate calculated for this item, taking into account its full useful life.

Residual value and remaining useful life apply it is forbidden.

Thus, when modernizing a fixed asset, there is a possibility of underdepreciation or premature write-off of the value of this object by the time of the end of its useful life.

If the initial cost of the fixed asset has increased as a result of modernization, and the useful life remains the same, then at the end of this period the object will not be fully depreciated.

Despite this, the organization and after the end of the useful life of fixed assets should be depreciated at the previous rate until the cost of the object is completely written off (letters of the Ministry of Finance of Russia dated June 9, 2012 No. 03-03-10 / 66, dated March 13, 2012 No. 03 -03-06 / 1/126, dated July 5, 2011 No. 03-03-06 / 1/402).

Example 5. In January, the organization put into operation a fixed asset at an initial cost of 600,000 rubles. The useful life (SPI) is 60 months. In November of the same year, the OS was modernized. Total costs for modernization - 200,000 rubles. As a result of modernization, the SPI has not changed.

Solution 1

From February, the organization will begin to write off the initial cost of fixed assets as expenses. From December, the organization will depreciate based on the increased cost.

From February to November, the amount of monthly depreciation deductions will be 10,000 rubles. (600,000 rubles: 60 months). Accordingly, at the beginning of December, the residual value of fixed assets is 500,000 rubles. (600,000 rubles - 10,000 rubles × 10 months).

As a result of the modernization, the initial cost of fixed assets will increase (clause 2 of article 257 of the Tax Code of the Russian Federation) and amount to 800,000 rubles. The amount of depreciation deductions accounted for in expenses will amount to 13,333 rubles starting from December. (800,000 rubles: 60 months).

By the end of the useful life, the organization will attribute to expenses only 766,667 rubles. (10,000 rubles × 10 months + 13,333 rubles × 50 months). The rest of the cost of the acquisition and modernization of fixed assets in the amount of 33 333 rubles. (800,000 rubles - 766,667 rubles) the organization will take into account within three months after the end of the useful life of the OS.

A different approach to the calculation of depreciation deductions after the modernization of a fixed asset, when the useful life does not change, is also possible.

In accordance with para. 3 p. 1 of Art. 258 of the Tax Code of the Russian Federation, if the useful life of fixed assets as a result of its modernization has not increased, when calculating depreciation, the organization takes into account the remaining useful life.

Based on this provision, some arbitration courts conclude that the taxpayer has the right to charge depreciation based on the residual value of fixed assets, increased by the amount of the cost of modernization, and the remaining useful life (Resolution of the FAS Moscow District dated April 6, 2011 No. KA-A40 / 2125 -11, dated September 21, 2010 No. KA-A40 / 10411-10, dated June 3, 2009 No. KA-A40 / 4667-09, FAS of the Volgo-Vyatka District dated May 7, 2008 No. A29-6646 / 2007 , dated April 29, 2008 No. A28-8591 / 2007-366 / 11, FAS of the Volga District dated July 17, 2007 No. A49-998 / 07).

Example 6. Let's use the data in Example 5 and consider another option for calculating depreciation.

Solution 2

From February to November, depreciation will be recognized as an expense at the same rate as in decision 1, - 100,000 rubles. [(600,000 rubles: 60 months) × 10 months]. Consequently, the residual value of fixed assets in November will also amount to RUB 500,000.

The amount of monthly depreciation deductions taken into account in expenses from December will be calculated based on the residual value of fixed assets, increased by the amount of modernization costs (RUB 500,000 + RUB 200,000), and the remaining useful life - 50 months. It will amount to 14,000 rubles. (700,000 rubles: 50 months).

Thus, by the end of the useful life, the organization will completely write off the costs of acquiring and modernizing the OS:

RUB 10,000 × 10 months + RUB 14,000 × 50 months = RUB 800,000

Calculation of the depreciation rate if the useful life of the object is increased

Accounting. If, as a result of the completion, retrofitting, reconstruction or modernization there has been an improvement (increase) in the originally adopted standard performance indicators of the asset, the organization revises the useful life of this object.

Example 7. Object of fixed assets worth 200,000 rubles. and a useful life of 2 years after 1 year of operation has been upgraded. The cost of modernization work amounted to 50,000 rubles. The useful life has been revised upwards by 1 year.

The residual value of the fixed asset, taking into account the modernization, is 150,000 rubles. ...

The new useful life will be 2 years.

The annual amount of depreciation deductions will be equal to 75,000 rubles.

Tax accounting. How to reflect the organization in the tax accounting of modernization in the case when the useful life increases? The financial department has no consensus on this matter.

In the latest clarifications of the Ministry of Finance of Russia, it is indicated that in this case it is necessary to depreciate the fixed asset according to the previous rates. Changes in the depreciation rate are not provided for by the Tax Code of the Russian Federation (see letters dated February 11, 2014 No. 03-03-06 / 1/5446, dated October 3, 2013 No. 03-03-06 / 1/40974).

However, in earlier letters, the financial department explained that with an increase in the useful life, the residual value of fixed assets, taking into account the cost of modernization, should be amortized according to the rates that are determined taking into account the increased useful life (letter of the Ministry of Finance of Russia dated September 26, 2012 No. 03-03- 06/1/503).

In accordance with para. 2 p. 1 art. 258 of the Tax Code of the Russian Federation, the organization has the right to increase the useful life of the OS after its modernization. Accordingly, the depreciation rate should be calculated taking into account the increased SPI (clause 2 of article 259 1 of the Tax Code of the Russian Federation).

Example 8. In March, the organization acquired and put into operation a fixed asset with an initial cost of RUB 300,000. The organization has set its useful life at 25 months. In September of the same year, the OS was upgraded. The cost of modernization is 100,000 rubles. The STI was increased to 30 months.

Solution

From April, the organization will begin to take into account the initial cost of fixed assets in the amount of 300,000 rubles. The depreciation rate will be 4% (1: 25 months × 100%). The amount of monthly depreciation deductions from April to September is 12,000 rubles. (RUB 300,000 × 4%).

Consequently, for this period, the organization will take into account depreciation charges in the amount of 72,000 rubles. (12,000 rubles × 6 months). At the beginning of October, the residual value of fixed assets will be 228,000 rubles. (300,000 rubles - 72,000 rubles).

After modernization, the initial cost of fixed assets will be 400,000 rubles. (300,000 rubles + 100,000 rubles).

Based on this, the organization will charge the expenses of the residual value of fixed assets for 21 months [(228,000 rubles + 100,000 rubles): 16,000 rubles / month].

The fixed asset will be depreciated in 27 months (6 months + 21 months), i.e. before the expiration of its extended useful life.

Refurbishment of a fixed asset that is fully depreciated

Accounting. If the useful life is not revised, then at the same time on the 1st day of the month following the month of completion of the modernization, the organization has the right to include the costs of its implementation in expenses as depreciation deductions.

This approach allows the organization to avoid paying property tax on this fixed asset. Accordingly, there are risks of claims from the inspection authorities.

Extending useful lives is an entity's right, not an obligation. However, in order to avoid claims from the tax authorities, it is recommended to slightly increase the useful life of the depreciated fixed asset for accounting purposes after modernization.

Tax accounting. Since the fixed asset is completely depreciated, its residual value is zero (clause 5 of article 270 of the Tax Code of the Russian Federation).

The initial cost of the object increases by the amount of the cost of modernization (clause 2 of article 257 of the Tax Code of the Russian Federation).

In this case, the organization must apply the depreciation rate established when the fixed asset was put into operation (letters of the Ministry of Finance of Russia dated April 5, 2012 No. 03-03-06 / 1/181, dated November 3, 2011 No. 03-03-06 / 1 / 714, dated September 23, 2011 No. 03-03-06 / 2/146, dated December 27, 2010 No. 03-03-06 / 1/813, dated September 10, 2009 No. 03-03-06 / 2/167).

The new useful life of the upgraded facility is not taken into account.

Example 9. The organization decided to upgrade the fixed asset, the initial cost of which is 100,000 rubles. The useful life of the facility upon commissioning was set at 20 months.

By the time the modernization began, the OS was completely depreciated. Modernization costs amounted to 40,000 rubles. Upon completion of the modernization, the organization extended the useful life of this facility by 12 months.

Solution

The initial cost of the facility upon completion of the modernization will be 140,000 rubles. (100,000 rubles + 40,000 rubles).

The amount of monthly depreciation deductions, taking into account the increased initial cost of fixed assets (the depreciation rate does not change in this case), will be 7,000 rubles every month. (140,000 rubles: 20 months).

The organization will write off the costs of upgrading the OS in accordance with clause 3 of Art. 272 of the Tax Code of the Russian Federation within 6 months (40,000 rubles: 7,000 rubles / month).

Depreciation bonus for modernization

In accordance with paragraph 9 of Art. 258 of the Tax Code of the Russian Federation, the organization is given the right to include in the expenses of the reporting (tax) period the costs of capital investments in the amount of not more than 10% of the costs incurred in cases of completion, retrofitting, reconstruction, modernization, technical re-equipment, partial liquidation of fixed assets.

According to Art. 258 of the Tax Code of the Russian Federation, depreciable property is divided into depreciation groups in accordance with its useful life. The useful life is the period during which an item of fixed assets or an item of intangible assets is used to fulfill the purposes of the taxpayer's activities.

Depreciation group of fixed assets	Property with a useful life
First group	From 1 year to 2 years inclusive
Second group	Over 2 years up to 3 years inclusive
Third group	Over 3 years up to 5 years inclusive
Fourth group	Over 5 years up to 7 years inclusive
Fifth group	Over 7 years up to 10 years inclusive
Sixth group	Over 10 years up to 15 years inclusive
Seventh group	Over 15 years up to 20 years inclusive
Eighth group	Over 20 years up to 25 years inclusive
Ninth group	Over 25 years up to 30 years inclusive
Tenth group	Over 30 years

For fixed assets belonging to the third-seventh depreciation groups, which include property with a useful life of more than 3 years and up to 20 years inclusive, similar expenses for capital investments may be included in the expenses of the reporting (tax) period in the amount of not more than 30%.

Expenses in the form of a depreciation bonus are recognized as indirect expenses of the reporting (tax) period for which, in accordance with Chapter 25 of the Tax Code of the Russian Federation, the date of the start of depreciation (date of change in the initial value) of fixed assets in respect of which capital investments were made (clause 3 Article 272 of the Tax Code of the Russian Federation).

Modernization of one and the same OS can be carried out more than once during its life. Accordingly, the depreciation bonus, taken into account for the purposes of taxation of profits in connection with the implementation of expenses for the modernization of fixed assets, can be taken into account each time an organization incurs expenses for a new modernization of the same fixed asset (letter of the Ministry of Finance of Russia dated August 9, 2011 No. 03 -03-06 / 1/462).

The ending follows

Regulation on accounting "Accounting for fixed assets" PBU 6/01, approved by order of the Ministry of Finance of Russia dated March 30, 2001 No. 26n.

The act of acceptance and delivery of repaired, reconstructed, modernized fixed assets (unified form No. OS-3) (OKUD 0306002) was approved by the Decree of the State Statistics Committee of Russia dated January 21, 2003 No. 7. From January 1, 2013, the forms of primary accounting documents contained in albums of unified forms of primary accounting documentation are not mandatory for use. At the same time, the forms of documents used as primary accounting documents established by authorized bodies in accordance with and on the basis of other federal laws (for example, cash documents) (information of the Ministry of Finance of Russia No. PZ-10/2012) remain mandatory for use.

Inventory card for accounting of the object of fixed assets (unified form No. OS-6) (OKUD 0306005) approved by the Decree of the State Statistics Committee of Russia dated January 21, 2003 No. 7.

The correct qualification of various types of work on the restoration of fixed assets: current and major repairs, on the one hand, and reconstruction, modernization, retrofitting, on the other, is a prerequisite for high-quality financial planning in an institution. Ultimately, the adoption and implementation of budgetary obligations, the reflection of operations in budgetary accounting and reporting, and the calculation of taxes depend on this.

It is no secret that in cases of all types of repairs, the costs are written off to the current expenses of the institution, and when reconstruction, modernization and retrofitting are carried out, they are attributed to an increase in the initial cost of fixed assets. At the same time, it is often very difficult to distinguish between these concepts in practice. Let's consider the main approaches to the definition of the listed types of work.

Terminology

• modernization -
• retrofitting -

• trouble-shooting;
• Finishing work.

Table 1
Functional purpose of the fixed asset

An object	Main functions
Building
Fence, fence
Highway
Automobile
A computer	2. Store information.

Repair

Traditionally different different levels average

The term "reconstruction"

The term "modernization"

The term "retrofitting"

Work planning

Defining the goal

APPLICATION FOR REPAIR, RECONSTRUCTION, MODERNIZATION, ADDITIONAL EQUIPMENT

Object name	Inventory number		Cause	Planned activities	Planned result
	333222333
VAZ-21114 car	555666555			Self-repair	Restoration of performance
Automated workplace (computer included)		555666777
House of culture building		777888999	Roof leaks	Replace the soft roof
House of culture building		777888999			Improving performance

and finishing works,

table 2
Reflection in the budget accounting of works on repair, reconstruction, modernization, additional equipment

P / p No.	Contents of operation	Accounting entry 1
		debit of the budgetary account
1	2	3	4
		KRB 0 401 01 225 KRB 2 106 04 340	KRB 0 302 08 730
		KRB 0 401 01 226 KRB 2 106 04 340	KRB 0 302 09 730
		KRB 0 105 00 340	KRB 0 302 22 730
	in terms of budgetary funds;	KRB 1 401 01 272 KRB 2 401 01 272 KRB 2 106 04 340	KRB 0 105 00 440
		KRB 0 106 01 310	KRB 0 302 19 730
		KRB 0 106 01 310	KRB 0 302 09 730
		KRB 0 105 00 340	KRB 0 302 22 730
		KRB 0 106 01 310	KRB 0 105 00 440
		KRB 0 101 00 310	KRB 0 106 01 410

Repair, reconstruction, modernization, retrofitting - how to correctly delineate, plan and take into account costs

The correct qualification of various types of work on the restoration of fixed assets: current and major repairs, on the one hand, and reconstruction, modernization, retrofitting, on the other, is a prerequisite for high-quality financial planning in an institution. Ultimately, the adoption and implementation of budgetary obligations, the reflection of operations in budgetary accounting and reporting, and the calculation of taxes depend on this. It is no secret that in cases of all types of repairs, the costs are written off to the current expenses of the institution, and when reconstruction, modernization and retrofitting are carried out, they are attributed to an increase in the initial cost of fixed assets. At the same time, it is often very difficult to distinguish between these concepts in practice. Let's consider the main approaches to the definition of the listed types of work.

Terminology

Many regulations start with definitions of concepts and terms used in the document. So, for example, concepts and terms are devoted to Art. 6 BC RF, art. 8 and 11 of the Tax Code of the Russian Federation, Art. 15 and 20 of the Labor Code of the Russian Federation. In cases where there is no clear and unambiguous definition for key terms, the application of legislative norms in practice raises a lot of questions and controversial situations.

So it was until recently with regard to the issue of delimiting a budgetary institution of works on repair, reconstruction, modernization, and additional equipment. Until 2009, neither the Instruction on Budget Accounting, nor the legislation on accounting in general, nor the legislation on budget classification contained these concepts.

In 2009, the Ministry of Finance of Russia for budgetary institutions developed Methodological Recommendations for the use of KOSGU (system letter of the Ministry of Finance of Russia dated July 21, 2009 No. 02-05-10 / 2931), which contained, in particular, clear definitions of the terms "reconstruction", "modernization "," Additional equipment "for the purpose of correct attribution of expenses to items (sub-items) of KOSGU. In the same letter, the distinctive characteristics of the repair work were given.

The system letter on the procedure for applying KOSGU in 2010 (letter of the Ministry of Finance of Russia dated 05.02.2010 No. 02-05-10 / 383) provides similar definitions of operations that increase the value of an item of fixed assets:

• reconstruction is a change in the parameters of capital construction objects, their parts (height, number of floors, area, indicators of production capacity, volume) and the quality of engineering support. This definition completely coincides with that given in paragraph 14 of Art. 1 of the Town Planning Code of the Russian Federation;
• modernization - a set of works to improve the object of fixed assets, leading to an increase in the technical level and economic characteristics of the object, carried out by replacing its structural elements and systems with more efficient ones;
• retrofitting - the addition of fixed assets with new parts, parts and other mechanisms that will form a single whole with this equipment, give it new additional functions or change performance indicators, and their separate application will be impossible.

At the same time, the said Letter defines that the concept of "repair" includes, among other things:

• trouble-shooting;
• maintenance of technical, economic and operational indicators at the initially envisaged level;
• non-capital redevelopment of premises;
• Finishing work.

Functional purpose of the fixed asset

Further, when considering the principles that make it possible to draw the line between different types of work, the concept of "functional purpose of a fixed asset" will be used repeatedly. Before qualifying the type of work, it is necessary to clearly formulate what the main asset is intended for, and then determine how the performance of these functions will change as a result of the work. At first glance, it seems that it is not difficult to give such a definition (see Table 1).

Table 1
Functional purpose of the fixed asset

An object	Main functions
Building	1. Provide protection from atmospheric agents. 2. Ensure the safety of property. 3. Provide conditions for the activities of people. 4. Provide conditions for the operation of the equipment.
Fence, fence	1. Mark the boundaries of the site. 2. Restrict access to the site.
Highway	1. Ensure the movement of cars. 2. Ensure safety when moving vehicles. 3. Provide comfort when moving cars.
Automobile	1. Ensure the movement of people and goods. 2. Ensure safety when moving people and goods. 3. Provide protection of people and goods from atmospheric phenomena. 4. Ensure the safety of the property in the car.
A computer	1. Process information - transform information of one kind into another. 2. Store information.

Having formulated the purpose of the main asset in this way, it becomes easier to analyze various situations later. For example, in relation to buildings, what conditions need to be created for people? - Lighting, water, sewerage. But does the type of wallpaper or the material for finishing the ceiling belong to the necessary conditions for work?

The following sections will show you how defining the functional purpose of an asset becomes the key to differentiate between different types of activities.

Repair

The concept of "repair" includes not only the elimination of malfunctions, but also the maintenance of the operational performance of the facility. In other words, repair work is aimed at restoring the full performance of the object of its functions.

Even if, as a result of repairs, the characteristics of the object have improved, its value does not increase. This situation is especially relevant in relation to computer technology, the generations of which are changing very quickly.

Traditionally different different levels repairs: current, average and capital. At the same time, there is no unambiguous distinction between these concepts in the legislation. For example, in the Town Planning Code of the Russian Federation, the term "overhaul" occurs repeatedly, but its definition is not given. Since there are no differences between current and major repairs from the point of view of the application of the budget classification and the procedure for maintaining budget accounting, the accountant does not need to deal with the differentiation of such expenses.

At the same time, it is necessary to take into account the fact that in the practice of construction organizations, overhaul often means a set of works to improve capital construction facilities, which does not correspond to the terminology defined by budgetary legislation.

Finishing work can be distinguished as a separate type of repair. There is no definition of this term in the system letters of the Ministry of Finance of Russia, but its meaning can be understood from the above list of works. Finishing work is understood as work that is not due to the restoration of the object, but also does not lead to an improvement in its main characteristics, for example, painting in a different color.

Basically, the term "finishing work" is applied to capital construction objects, but by analogy it can be attributed to vehicles (a car can also be painted in a different color without the purpose of restoration) and to any other property when the work concerns only changing the appearance of the object.

To distinguish between finishing work and work leading to the improvement of the object of fixed assets, it is precisely the determination of the functional purpose of the fixed asset that will help. If the work does not affect the quality of performance of the main functions and does not add new functions, then such work can be attributed to finishing work.

Reconstruction, modernization, additional equipment

The term "reconstruction" applies exclusively to capital construction projects. Therefore, it is impossible to carry out the reconstruction of a car or a personal computer. Only a building or structure can be reconstructed. Reconstruction involves changing the parameters of the object. The reconstruction also includes improving the quality of engineering and technical support, but the content of these works is not explained in the regulatory documents.

The term "modernization" involves the replacement of units, and these units must be in good working order. If a faulty unit is replaced, then such work is not an upgrade, but a repair. If no units are replaced, then such work is additional equipment.

Thus, for the term “retrofit” to be used correctly, it should be clearly understood what it means to replace a serviceable part: the part must be serviceable before replacement, but does not have to remain so after dismantling.

The term "retrofitting" presupposes an inalienable improvement of an item of property, plant and equipment. It follows from this that the new parts added to the object should be, firstly, difficult to separate, and secondly, give the object new properties.

Work planning

An important task at the planning stage is setting goals and defining the scope of work.

Defining the goal

In order to correctly determine to which category of work, repair or reconstruction (modernization, additional equipment) the operation that the institution plans to carry out, first of all, you need to determine the goal.

If the initial purpose of the work is to restore operability or technical characteristics, or external changes that do not affect the quality of the object's performance of its functions, then repairs are being made.

If the purpose of the work is to improve the basic characteristics of a serviceable object or adding new features, hence, they can be attributed to reconstruction, modernization or retrofitting. In this case, further it is necessary to decide on the choice of one of the three types of operations. If the operation involves the replacement of units or parts, then this is a modernization (or reconstruction). If the operation involves the addition of nodes and parts, then this is additional equipment (or completion).

Justification of the need for the cost of work

In order to exclude unnecessary questions about the expediency of carrying out repairs and other work, as well as to streamline all operations with property, including the restoration of fixed assets, when carrying out control and audit measures, the institution is recommended to establish the following procedure at the level of accounting policy:

• To appoint as a separate order (decree), not including in the text of the accounting policy itself, persons responsible for the operation of various types of property in operational management, use, lease, etc. Moreover, such persons do not have to be financially responsible. For example, the person in whose use it is can be financially responsible for the computer, and a specially appointed qualified employee can be responsible for the operation of all computers in the institution.
• To impose an obligation on the persons responsible for the operation of property objects, monitoring their technical condition, as well as drawing up applications for repairs, reconstruction, modernization, and additional equipment. Determine that the specified work is not performed without a corresponding request, approved by the head.
• Install the application form. An example of filling out the tabular part of the application is given below (the header must contain the details of the institution, the date and number, the signature of the manager, and the basement - the signature of the person responsible for the operation of the property).

Object name	Inventory number		Cause	Planned activities	Planned result
Automated workplace (computer included)	333222333		The image on the monitor is fuzzy, "floats", adjustments are not eliminated	Diagnostics and repair, if necessary by means of a third-party organization	Restoration of performance
VAZ-21114 car	555666555		Knock in the front suspension - silent blocks collapsed	Self-repair	Restoration of performance
Automated workplace (computer included)		555666777	System resources - the amount of RAM - is not enough to use the "AAA" program	Additional equipment with additional RAM	Ability to use the program "AAA"
House of culture building		777888999	Roof leaks	Replace the soft roof	Restoration of operational characteristics
House of culture building		777888999	Rain and melt water flowing from the roof floods the porch, the steps are covered with ice and collapse, injuries are possible	Build a canopy over the porch	Improving performance

The person responsible for the operation of the property must draw up applications, regardless of whether there are funds for the implementation of the proposed activities. The introduction of such a procedure for planning repair and other work into the practice of an institution will allow to solve not only the problems of justifying expenses during control and audit activities, but also systematize all activities of the institution for the maintenance and servicing of property. Also, when developing an accounting policy, it is advisable to make a decision regarding applications for replacing consumables (toner, cartridges) and performing routine maintenance.

At the stage of planning work on reconstruction, modernization, retrofitting, it is necessary to take into account the requirements of Art. 34 of the Budget Code of the Russian Federation, which establishes the principle of the effectiveness and efficiency of the use of budgetary funds. And local governments receiving interbudgetary transfers (with the exception of subventions) should also take into account the requirements of Art. 136 BC RF. In other words, it is necessary to be ready to justify the feasibility of the improvements made to the property. and finishing works, and also the fact that the ongoing improvements are aimed specifically at a better implementation of the main activities of the institution. For example, what institution could indicate the reason when making an application for work on installing a car radio in a car (if it was not in the factory delivery)?

Features of the conclusion of contracts for the performance of work

When planning repair and other work, carrying out cash expenses, as well as during control and audit activities, various conflict situations often arise. Many of these situations can be avoided if you are guided by a simple principle: the KOSGU article, to which the costs of the contract will be attributed, is determined by what is the result of the execution of the contract.

This principle implies that the KOSGU article is determined depending on what has changed in the institution itself as a result of the implementation of the contract. This principle is very simple, but, unfortunately, in practice there are situations of deep misunderstanding. Typical mistakes are:

• mistake number 1 - the definition of an article by KOSGU, depending on what happened to the performer;
• mistake number 2 - the definition of the article KOSGU, depending on what happens in the institution later.

It is especially difficult for an accountant, for an employee of the planning and economic service, and for a lawyer of an institution, to work out the correct procedure for actions when, within the framework of the same transaction, operations are performed to restore an item of fixed assets and to improve it. In this case, it is necessary, clearly and consistently applying the above principles, to divide by tasks and amounts of repair and restoration work and work on improvement within the framework of one contract or conclude several different contracts.

If it is necessary to highlight different types of work under one contract, then this should be done in the "Subject of the contract" section, explicitly indicating two (or more) types of work, as well as in the "Contract amount" section, indicating the cost of the corresponding types of work. Consequently, the contractor will be accountable for the work performed by different documents: one act for repair work and another for work on improvement.

The same situations can arise when carrying out large-scale reconstruction of buildings or restoration of monuments. When analyzing specific cases, some of the entire complex of reconstruction work can be qualified as repair and restoration work, will be partially paid for by sub-article 225 of KOSGU and will not lead to an increase in the value of the building for the entire amount of work performed under the contract. And during the restoration of a monument, a significant improvement can also be made, requiring the application in some part of the amount of the contract of Article 310 of the KOSGU and leading to an increase in the value of the monument.

Reflection in the budget accounting of works on repair, reconstruction, modernization, additional equipment

table 2
Reflection in the budget accounting of works on repair, reconstruction, modernization, additional equipment

P / p No.	Contents of operation	Accounting entry 3
		debit of the budgetary account	budget account credit
1	2	3	4
	Acceptance of the cost of the contractor's services (work) for the repair or restoration of operability or finishing work (including the cost of the contractor's own materials).	KRB 0 401 01 225 KRB 2 106 04 340	KRB 0 302 08 730
	Acceptance of the cost of services (work) for the development of project documentation for repair work.	KRB 0 401 01 226 KRB 2 106 04 340	KRB 0 302 09 730
	Acquisition of materials for renovation work under a separate transaction.	KRB 0 105 00 340	KRB 0 302 22 730
	Write-off of own materials used for repair work. in terms of budgetary funds; in terms of targeted extrabudgetary funds; in terms of funds from entrepreneurial activities	KRB 1 401 01 272 KRB 2 401 01 272 KRB 2 106 04 340	KRB 0 105 00 440
	Acceptance of the cost of the contractor's services (work) for reconstruction, modernization, retrofitting (including the cost of the contractor's own materials).	KRB 0 106 01 310	KRB 0 302 19 730
	Acceptance of the cost of services (work) for the development of project documentation for the reconstruction, modernization, and additional equipment.	KRB 0 106 01 310	KRB 0 302 09 730
	Acquisition of materials under a separate transaction for the execution of works on reconstruction, modernization, and additional equipment.	KRB 0 105 00 340	KRB 0 302 22 730
	Write-off of own materials used for reconstruction, modernization, and additional equipment.	KRB 0 106 01 310	KRB 0 105 00 440
	Increase in the value of fixed assets as a result of reconstruction, modernization, and additional equipment.	KRB 0 101 00 310	KRB 0 106 01 410

1 The application is drawn up separately for each item of fixed assets. The table shows examples of filling out an application for different types of work.

2 In categories 18, 22, 23 of the budget accounting account number, the corresponding codes of the type of activity and analytical account are indicated.

3 The application is drawn up separately for each item of fixed assets. The table shows examples of filling out an application for different types of work.

4 In categories 18, 22, 23 of the budget account number, the corresponding codes of the type of activity and analytical account are indicated.