Average annual total book value of fixed assets: formula

The average annual total accounting value of fixed assets (FV) is an indicator whose value must be calculated when compiling statistical form No. 11 on the presence and dynamics of Fixed Assets in the company. This document is filled out based on the results of the enterprise’s activities for the year and requires high-quality and reliable information about existing non-current assets, their potential, condition and use. Based on the information provided, Rosstat bodies carry out important analytical work in order to identify the company’s reserves and increase the productivity of property use. We will learn how to determine the average annual accounting value of fixed assets from this publication.

Formula for calculating the average annual cost of fixed assets

Since the procedure for paying taxes is fixed in the Tax Code, the formula for calculating any tax can be found there. Property tax is no exception.

The tax base for calculating property tax is the average annual cost of fixed assets.

The detailed calculation procedure is described in clause 4 of Art. 376 Tax Code of the Russian Federation.

CGS = (A1 + A2 + A3 + A4 + A5 + A6 + A7 + A8 + A9 + A10 + A11 + A12 + B1) / 13 , where

SGS - average annual cost;

A1 - residual value as of January 1;

A2–A12 - the residual value of the property on the 1st day of each month, where the figure is the serial number of the month (for example, A3 - the residual value as of March 1);

B1 - residual value as of December 31.

The denominator of the formula contains the number 13 - this is the number of months in the tax period increased by one (12 + 1). The numerator ultimately also adds up 13 indicators.

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What are fixed assets

Fixed assets are property that an enterprise owns on a long-term basis and which is used in the company's activities.

Fixed assets can be used for both production and non-production purposes. For example, spinning machines in a weaving factory are assets for production purposes; they are a means of labor and take part in the production of fabric. As for fixed assets for non-productive purposes, these include, for example, sanatoriums, educational institutions, residential buildings - in other words, property transferred to the management of non-profit structures.

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Budget for expenses for repairs and maintenance of fixed assets This form will help plan the costs for the maintenance and current repairs of fixed assets, including buildings and structures, vehicles, industrial equipment, etc.

Report on the movement of fixed assets and intangible assets The report contains data on all business transactions with fixed assets and intangible assets, as well as information on their initial and residual value. The document will help you understand which objects the company planned to purchase, which of them were purchased, as well as determine the date of their receipt and disposal.

The article will focus primarily on fixed assets for production purposes (hereinafter referred to as FIF).

Fixed assets are classified depending on the scope of their application, as well as the number of years during which they can be used. Thus, warehouse buildings, agricultural machinery and office furniture are classified as fixed assets, but fall into different groups.

In order to assess how much fixed assets an enterprise owns and how efficiently these funds are used, as well as to understand in what amount and over what period depreciation should be made, it is necessary to make a valuation of fixed assets. To do this, we calculate the average annual cost of fixed production assets.

Calculation of the average cost of fixed assets with an example

Average cost differs from average annual cost in that it is used only when calculating advance property tax payments.

An example of a formula for calculating the average cost for six months:

CC = (A1 + A2 + A3 + A4 + A5 + A6 + B1) / 7, where

СС - average cost;

A1 - residual value as of January 1;

A2–A6 - the residual value of the property on the 1st day of each month, where the figure is the serial number of the month (for example, A3 - the residual value as of March 1);

B1 - residual value as of July 1.

Unlike the formula for calculating the average annual cost, in the above formula all indicators are taken as of the 1st day of the month; data at the end of the month is not used.

Note! The calculations do not use the residual value of objects that are not subject to property tax or are recorded at cadastral value.

Example . Auto-jazz LLC repairs premium cars. Auto-jazz has repair equipment on its balance sheet.

Residual value of fixed assets in rubles:

as of 01/01/2018 - 589,000;

as of 02/01/2018 - 492,000;

as of 03/01/2018 - 689,000;

as of 04/01/2018 - 635,000.

In February, new equipment was purchased, as a result of which the residual value at the beginning of March became higher.

Let's calculate the average cost for January - March:

SS = (589,000 + 492,000 + 689,000 + 635,000) / 4 = 601,250.

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Categories

The formation of market relations involves competition between various producers, in which only those who most effectively use all types of available resources can win. The condition and use of fixed assets is one of the most important aspects of analytical work, since they are the material embodiment of scientific and technological progress. It is possible to identify reserves for increasing the efficiency of their use using a thorough economic analysis.

Balances of fixed assets

The balance of fixed assets is a statistical table, the data of which characterize the volume, structure, reproduction of fixed assets for the economy as a whole, industries and forms of ownership.

The basis for the calculation is the results of revaluations of fixed assets, the results of which determine the ratio of prices of the reporting year and the replacement cost of fixed assets in the base year.

To calculate fixed assets for a number of years in constant, base prices, the following indicators are used: price indices for capital-forming products; price indices for capital investments developed on the basis of average regulatory coefficients for types and groups of fixed assets, as well as for the periods of their acquisition; final statistical revaluation indices by type of fixed assets and sectors of the economy and industry; indices of changes in market prices for fixed assets, obtained from data on their market value.

The calculation of fixed assets at comparable prices is carried out by two methods - index and balance sheet. According to the index method, fixed assets of the reporting year are recalculated based on consolidated indices of changes in prices and tariffs for the period from the base year to the reporting year. According to the balance sheet method, data on the availability of fixed assets on the base date at replacement cost is reduced by the amount of assets disposed of before the reporting year and increased by the amount of fixed assets received during this period. In this case, both funds are recalculated into base year prices using the corresponding price indices.

Note! The balance of fixed assets in average annual prices is necessary for a comprehensive analysis of the availability, dynamics and use of fixed assets for a certain period of time based on average values. Based on this balance, such indicators as capital productivity, capital-labor ratio, average standard service life, degree of wear, etc. are calculated.

Average annual price indices are calculated based on the dynamics of prices for products of capital-forming industries (mechanical engineering and the construction materials industry) according to price statistics. The average annual price index is calculated by month of the reporting period. Average monthly price indices are calculated as the average values ​​of indicators at the beginning and end of each month, and the average annual price index is calculated as the quotient of dividing the sum of average monthly price indices by 12.

For balances of fixed assets, the following balance equation must be observed:

F1 + P = B + F2,

where F1 and F2 are the cost of fixed assets, respectively, at the beginning and end of the period;

P is the cost of funds received during the period;

B is the value of funds disposed of during the period.

Schemes of balance sheets of fixed assets at full cost and minus depreciation are presented in the layouts below (Tables 1, 2).

Fixed assets come from various sources. This may be the commissioning of new fixed assets as a result of investments, acquisition, receipt under a gift agreement, contribution of fixed assets as a contribution to the authorized capital, etc. Fixed assets are disposed of for the following reasons: liquidation of objects due to wear and tear, sale to other legal entities , gratuitous transfer, contribution to the authorized capital of other organizations, transfer for long-term lease, etc. The balance sheet can reflect all sources of income and all reasons for disposal by type.

In table 1 all indicators are assessed at residual value, with the exception of the indicator for the commissioning of new funds, which is assessed at the full initial cost. In contrast to the balance sheet at full valuation, in the balance sheet at residual value, one of the reasons for the decrease in value is annual depreciation, which is equal to the depreciation accrued for the year.

Based on balance sheets, statistics calculate a number of indicators characterizing the condition, movement, and use of fixed assets.

Indicators of movement, condition and use of fixed assets

The dynamics of fixed assets in Russia is characterized by the following data.

Indicators of the movement of fixed assets include: the dynamics coefficient, the renewal coefficient, the retirement coefficient of fixed assets.

The dynamics coefficient estimates the change in the value of fixed assets at the end of the period compared to the beginning and is calculated as the ratio of the value of fixed assets at the end of the year to the value of fixed assets at the beginning of the year.

The dynamics coefficient can be calculated using the full and residual value. Comparison of coefficients calculated using different estimates allows us to identify changes in the state of fixed assets. So, if the dynamics coefficient for the full value is less than the dynamics coefficient for the residual value, then the fixed assets were renewed during the period under review, that is, at the end of the period the share of assets without depreciation increased.

The renewal coefficient (Kobnov) characterizes the share of new fixed assets in their total volume (at full estimate) at the end of the period and is calculated using the following formula:

.

The retirement ratio (Kvyb) characterizes the share of retired fixed assets during the period in their total value (at full valuation) at the beginning of the period and is calculated by the formula:

To characterize the process of reproduction of fixed assets, the rate of renewal of fixed assets (Kint) is calculated:

The disposal of fixed assets may occur due to their complete disrepair. To assess the disposal of funds for the specified reason, you can calculate the dilapidation coefficient (Kveth):

The higher the value of this indicator, the lower the intensity of replacement of fixed assets.

Indicators of the condition of fixed assets include the wear and tear coefficient and the serviceability coefficient. These coefficients are calculated at a specific date (usually the beginning and end of the period).

The depreciation rate shows what part of its total value the fixed assets have already lost as a result of their use. The coefficient at the beginning of the period is calculated using the formula:

Kiznosa = Amount of depreciation / P.

The serviceability coefficient shows what part of its total value the fixed assets have retained as of a certain date. The shelf life coefficient at the beginning of the period is calculated as follows:

Usability = Residual value / P.

Example 1

Let us determine the degree of change in the deterioration and suitability of fixed assets at a particular enterprise. The calculation results are presented in table. 3.

The shelf life coefficient at the beginning of the year was 71.2% (14.6 / 20.5 × 100%). The shelf life ratio at the end of the year was 82.3% (19.1 / 23.2 × 100%). The depreciation rate at the beginning of the year was 28.8% (5.9 / 20.5 × 100%). The wear rate at the end of the year was 17.7% (4.1 / 23.2 × 100%).

Indicators of the use of fixed assets include capital productivity and capital intensity. To calculate these indicators, the average cost of fixed assets () is determined in several ways:

1) using the simple arithmetic mean formula:

= (OFn + OFk) / 2;

2) according to the average chronological formula, if the value of fixed assets is known for dates separated by equal periods of time:

where n is the number of periods;

3) according to data on the movement of fixed assets:

where OF1 is the cost of fixed assets at the beginning of the year;

P is the cost of fixed assets received during the year;

B is the cost of fixed assets retired during the year;

t1 - number of months of operation of received fixed assets;

t2 is the number of months of operation of fixed assets retired during the year.

The capital productivity indicator estimates the number of products per ruble of fixed assets. Capital productivity is a direct indicator of the efficiency of use of fixed assets: the higher the capital productivity, the better the use of fixed assets, and vice versa. Capital productivity (FRO) is calculated as the ratio of the output of marketable products to the average cost of fixed assets:

The capital intensity indicator is an inverse indicator of the efficiency of using fixed assets. The lower the level of capital intensity, the more efficiently fixed assets are used. Capital intensity evaluates the level of costs of fixed assets per ruble of manufactured products. Capital intensity (Fe) is calculated using the formula:

To assess the provision of labor with fixed assets, statistics use the capital-labor ratio indicator. The capital-labor ratio estimates the average volume of fixed assets per employee. Capital-labor ratio (Fe) is calculated as the ratio of the average annual value of fixed assets to the average number of employees:

Fv = P /

where is the average number of employees.

One of the general indicators characterizing the efficiency of use of fixed assets is the profitability of fixed assets. It is defined as the ratio of book profit (Pbal) to the average annual cost of fixed assets (Fosn):

Rosn. f = Pbal / Phosn.

Example 2

Using the above formulas, we will consider the change in general indicators in the organization. We present the initial data and calculation results in Table. 4.

Analysis of the impact of changes in the efficiency of use of fixed assets on production volume

A change in the volume of production can occur due to a change in capital productivity and the volume of funds. To conduct index analysis, the volume of production and the cost of fixed assets are assessed at comparable prices of the base period. The production volume index (Iq) is equal to the product of the capital productivity index (IFo) and the index of the cost of fixed assets (IOF):

,

where q0, q1 are the volume of production in the base and current periods, respectively;

Fo 0, Fo 1 Fo0, Fo1—capital productivity, respectively, in the base and current periods;

— the average cost of fixed assets in the base and current periods, respectively.

The absolute change in the volume of production in the current period (TP1) compared to the base period (TP0) is determined as follows:

Δmn = TP1 – TP0.

Including:

a) due to changes in capital productivity:

∆Fo = OF1 × (Fo1 – Fo0);

b) due to changes in the average cost of fixed assets:

∆OF = (OF1 – OF0) × Fo0.

Analysis of the use of equipment and production capacity of the enterprise

After analyzing the general indicators of the efficiency of using fixed assets, it is necessary to study in detail the degree of use of the enterprise's production capacities, individual types of machinery and equipment.

Production capacity is understood as the maximum possible output of products at the achieved or intended level of technology, technology and production organization. The maximum power of the equipment is not a constant value; its level may be revised in the process of further optimization of the production process. It is calculated based on the capacity of leading workshops, sections, units, taking into account the implementation of a set of organizational and technical measures aimed at eliminating bottlenecks, and possible production cooperation. The actual power can be equal to the maximum if high equipment efficiency is achieved and the production process is organized in an optimal way.

For example, if, as a result of an analysis of the operation of production lines, it is revealed that the actual capacity differs from the maximum by more than two times, this means that to produce the same volume of products, enterprises where the efficiency of the equipment is high may require half as many units of equipment, than at an enterprise, where such efficiency is significantly lower. Consequently, enterprises that pay due attention to achieving high equipment efficiency have a real opportunity to save money “on all fronts”: they reduce the need for investment, save workshop space, reduce labor costs, etc.

The degree of utilization of production capacity is characterized by the following coefficients:

General coefficient = Actual or planned volume of production / Average annual production capacity of the enterprise,

Intensive coefficient = Average daily production output / Average daily production capacity of the enterprise,

Extensive coefficient = Actual or planned working time fund / Estimated working time fund adopted when determining production capacity.

In the process of analysis, the dynamics of these indicators, the implementation of the plan for their level and the reasons for their changes (commissioning and reconstruction of existing enterprise assets, technical re-equipment of production, reduction of production capacity) are studied.

In addition, the level of use of the enterprise's production space is analyzed: product output in rubles per 1 m2 of production area.

Analysis of equipment operation is based on a system of indicators characterizing the use of its number, operating time, and power.

To characterize the degree of equipment involvement in production, the following indicators are calculated.

Available equipment fleet utilization rate (Kn):

Kn = Amount of equipment used / Amount of available equipment.

Installed equipment fleet utilization rate (Ku):

Ku = Number of equipment used / Number of installed equipment.

The difference between the amount of available and installed equipment, multiplied by the planned average annual production per unit of equipment, is a potential reserve for growth in production by increasing the number of existing equipment.

To characterize the extensive loading of equipment, the use of equipment by time is analyzed: the balance of operating time and its shift ratio (Table 5).

The level of intra-shift use of equipment is characterized by the equipment load factor K3, which makes it possible to estimate the loss of equipment operating time due to scheduled maintenance, etc.:

Kz = Tf / Tk, or Tf / Tn, or Tf / Tef.

The level of conditional use of equipment is characterized by the shift coefficient (Kcm):

Intensive loading of equipment is understood as an assessment of its performance.

Equipment Intensive Load Factor (Ci):

A general indicator characterizing the complex use of equipment is the integral load indicator (Kint):

Kint = Kz × Ki.

In the process of analysis, the dynamics of these indicators, the implementation of the plan and the reasons for their changes are studied.

EXPERT'S COMMENT

O. V. Severin, Head of the Production Planning Department of JSC Unimilk Company

Our company spent three months analyzing the operation of eight pieces of equipment producing identical products at domestic food industry enterprises. As a result of the analysis, it was found that the equipment capacity achieved with the existing production organization varies at different enterprises from 2100 to 3750 tons/month. That is, the difference in the achieved power of equipment purchased from the same supplier reaches 56%. Such a significant difference is due to different levels of equipment operating efficiency, which for the most part is a consequence of the irrational organization of both the production technological process and the labor of production personnel. Naturally, before increasing the power of the equipment, it is necessary to determine how efficiently it operates and what are the limits for increasing the efficiency of the equipment.

Calculation method based on equipment efficiency reporting

The essence of this method is to analyze the statistics of production reports on the operation of equipment, in which employees record all the actions carried out while working on this equipment. Having collected statistics for a certain period, it is necessary to analyze how the production process actually took place, and what exactly the production time was spent on. Using this data, it is easy to track the actual organization of the production process, and then calculate the actual capacity of the equipment. Advantages of the method: accuracy, objectivity, use of actual data for calculations, complete clarity as to what the result consists of. An additional advantage is that the same reporting can later be used to solve other production problems. Disadvantages of this method: it will take some time to implement the above-mentioned reporting on the operation of production equipment and to train production personnel (the workload on personnel will increase).

There are also several methods for estimating the maximum power of equipment, and in essence they are in many ways similar to methods for estimating actual power.

The most optimal method seems to be a calculation based on reporting on the efficiency of equipment operation. This is what we will consider next.

Time accounting loves

Equipment efficiency reporting is compiled to provide detailed accounting of the use of production time. Systems for working with such daily reporting in one form or another have been implemented at the vast majority of foreign manufacturing enterprises, and in essence they are not much different from each other. The physical medium of the report is a form filled out daily during a shift by an enterprise employee responsible for the operation of a specific piece of equipment. The report records all actions carried out during the production process on this equipment. An example of a completed reporting form on the efficiency of equipment operation for a shift (12 hours) is given in Table 6.

The data reflected in the report can be used:

• to determine the actual and maximum power of the equipment;
• assessment of the workload of production equipment (current, predicted);
• analysis of how production time is used (primary document about what happened to the equipment in past periods);
• control of planned downtime, determination of standards for their duration;
• calculating key production performance indicators, comparing work results over certain periods of time.

Looking for hidden reserves

Based on the data recorded in the report on the operation of the equipment for the shift, it is possible to estimate the power of the equipment. We'll show you how to do this with an example.

Example 3

Let's use the data in table. 6.

From the report on the efficiency of equipment operation for a shift, the following data can be highlighted:

• the total analysis period (total shift time) is 720 minutes, of which:

— equipment operating time (OO) — 490 min;

— total planned downtime (PP) — 140 minutes;

— total time of unscheduled downtime (UP) — 20 minutes;

— unoccupied time (NV) — 70 min;

• apparatus speed (C) - 100 pcs./min;

• Products produced for the period - 49,000 units.

Based on data on the distribution of working time, it is possible to assess the efficiency of equipment operation for a given period. It is convenient to do this by calculating the conditional indicator “Productivity” (PR), which is one of the key indicators of production efficiency, allowing for its constant monitoring. It is calculated by the formula:

where BP is the minimum operating time required to produce a given amount of product;

PP, VP - duration of planned and unscheduled downtime, respectively.

In our example, the “Productivity” indicator for the shift report is 75.4% (490 / (490 + 140 + 20) × 100%).

The obtained value of the indicator should be interpreted as follows: of the entire period of working time (total time of the period minus non-working time), 75.4% was spent on production (working time), the remaining 24.6% was spent on various types of downtime. It is in the last component that one should look for reserves for a possible increase in productivity and increasing the power of equipment.

Having established the actual value of the “Performance” indicator, we will calculate the actual power of the equipment. To do this, it is recommended to determine the value of this indicator for a period of at least one month, since data on work during just one shift will not be representative for the specified purpose. The "Performance" value for one shift is suitable for monitoring the efficiency of equipment, but not for assessing its capacity.

The power (MS) of equipment for a certain period is calculated using the formula:

MSH = PR × ORP × V,

where PR is the actual value of the “Productivity” indicator, %;

ORP - the total time of the period for which it is required to estimate the power;

V is the operating speed of the equipment.

Let's calculate the daily power of the equipment based on the data given in table. 6:

• equipment operating speed (V) - 6000 pcs./h (100 pcs./min × 60 min);
• equipment productivity - 75.4%;
• The period for which power is determined (ORP) is 24 hours.

Thus, the actual capacity will be equal to: MSH = 0.754 × 6000 × 24 = 108,576 (pcs./day).

In order to calculate the maximum power of the equipment, it is necessary to clearly plan improvements in the organization of the production process. Most often, they are aimed at reducing the duration of planned and unscheduled downtime.

Let’s assume that in our example it is planned to cancel the planned downtime “Lunch break” by hiring additional staff to replace employees having lunch, and the duration of downtime “Wash” is to be reduced from 50 to 30 minutes (thanks to a revision of the washing procedure). It is impossible to implement other improvements, as studies of equipment operation have shown. Thus, the total duration of planned downtime (PP) in the given example would be not 140, but 90 minutes.

Next, you need to recalculate the “Productivity” indicator based on new data, and then recalculate the power. This will be the maximum power: PR = 490 / (490 + 90 + 20) × 100% = 81.7%; MS = 0.817 × 6000 pcs./h × 24 h = 117,648 pcs./day.

So, calculations showed that the planned improvements will increase productivity by 6.3% and increase the power of the equipment in such a way that it will produce 9072 more units of product per day than at actual capacity.

Using the average annual cost of OPF in economic analysis

Let's consider the scope of application of the average annual cost of OPF in the calculation of other economic indicators.

If we take the volume of products produced by an enterprise and divide it by the average annual cost of general production assets, we will obtain a capital productivity ratio, which actually shows how many products produced in monetary terms are per 1 ruble of fixed assets.

If the capital productivity of an enterprise increases over time, this allows us to conclude that the company's capacity is being used efficiently. A decrease in capital productivity, on the contrary, indicates the opposite.

If we take the average annual cost of general production as a dividend, and use the volume of production as a divisor, we get a capital intensity ratio, which allows us to determine what cost of fixed assets is needed to produce a unit of output.

If we divide the average annual cost of OPF by the average number of employees, this will allow us to calculate the capital-labor ratio, which shows the extent to which each of the enterprise’s employees is provided with the necessary means of labor.

If the average annual cost of the general fund is multiplied by the depreciation rate coefficient, which characterizes the operating conditions of the funds, we obtain the amount of depreciation charges for the year. This indicator can be used not only as a retrospective indicator, but also as a forecast indicator when drawing up business plans.

The concept of average annual price (hereinafter - AP) in economics is interpreted as a value that reflects the change in the price of fixed production assets (FAP) throughout the year as a consequence of their commissioning and liquidation. Calculation of the average annual cost is necessary to analyze the economic efficiency of production; it is carried out taking into account the initial cost of funds. We will tell you in the article how the average annual cost of fixed assets is calculated, according to what formula and indicators.

Economic indicators characterizing the efficiency of using fixed assets

The degree of effectiveness of the application of OPF is determined by core economic indicators - capital productivity, capital intensity, capital-labor ratio. Thus, capital productivity reflects the ratio of finished products per ruble of general fund. Capital intensity is the amount of funds for each ruble of finished products. Capital ratio indicates the degree of provision of working organizations with assets.

The analysis of the economic indicators under consideration is aimed at finding, eliminating and preventing problematic situations in relation to the profitability of enterprises. To carry out calculation operations for these indicators, the SP of fixed assets is used. Calculations are carried out using different formulas:

1. For capital productivity: volume of manufactured products / SP of fixed assets.
2. For capital intensity: SP of fixed assets / volume of production.
3. For capital equipment: SP of fixed assets / average number of employees.

The dynamics of these economic indicators throughout the year characterizes the consistency of the use of funds from different sides. Thus, the positive development of the capital productivity indicator, that is, its increase, indicates the effectiveness of using the general fund. Low capital intensity indicates sufficient efficiency of equipment use. In relationship, both indicators manifest themselves as follows.

The capital intensity increases, but the capital productivity decreases, which means that the organization is using irrational funds. Accordingly, measures should be taken urgently.

For research on the use of fixed assets, the dynamics of changes in each indicator are taken into account separately. Thus, the inconsistency in the use of resources is also indicated by an increase in the capital-labor ratio with low growth in labor productivity in comparison with the indicator.

Since the technical condition of the assets depends on the degree of their wear and tear, the relative wear rate is also of no small importance for the characteristics of fixed production assets. The depreciation coefficient is calculated as follows: the credited amount of depreciation during use (end, beginning of the year) / initial price of the general fund (beginning, end of the year). If the calculation turns out that the depreciation rate at the end of the year is less than the figure at the beginning of the year, it means that the condition of the assets has improved.