Wear and other indicators of the state of fixed assets of the enterprise

As modern as it was production equipment, eventually it inevitably wears it, there's nothing to be done about it. However, this process can be slowed down if we carry out planned and major repairs, as well as carry out reconstruction and modernization. The following documents serve as the basis for carrying out such work:

• data and standards on the timing of repair work;

• estimates for the production of repair work;

• information on the initial and current value of objects related to the fixed assets of the enterprise;

• various defective statements.

The very word "wear" means a decrease in the productive resource of fixed assets, their natural aging and the gradual loss of value. To assess it, a number of indicators are used, the main one being the depreciation coefficient of fixed assets. In addition to this, the expiration ratio, retirement ratio and refresh rate are also often calculated. Timely periodic calculation of these indicators allows the company to always be on the alert, in time to create a reserve for repairs and upgrades of its production facilities, to plan for the modernization and reconstruction of its equipment.

Let us now consider how these indicators are calculated. First we will have a coefficient of wear. The formula for this index is as follows:

To _depreciation = Amount of depreciation / Balance (initial) cost of fixed assets.

The wear coefficient shows the level of wear and tear of the main production assets. The smaller it is, the better the physical condition of the production assets of the enterprise. The wear factor, as a rule, is calculated on a certain date. Usually the beginning and end of the past year begin. The source for its calculation is the accounting form No. 20, which reflects the presence and movement of absolutely all fixed assets of the enterprise.

For clarity, let's take an example. Suppose that a certain joint-stock company has the PF as of the beginning of 2012 amounted to 5,200 thousand rubles, at the end of the year - 5,550 thousand rubles. The amount of depreciation in this case, respectively, was at the level of 1400 and 1410 thousand rubles. Thus, the depreciation rate at the beginning of 2012 will be equal to 1400/5200 = 0.2692 or 26.92%. At the end of the year, this indicator was 1410/5550 = 0.2541 or 25.41%. What are these figures talking about?

They testify to a slight improvement in the physical condition of the public association. The wear coefficient during the year decreased by 0.2692-0.2541 = 0.0151 or 1.51%.

The coefficient of shelf life (K _year ) is an indicator directly opposite to the indicator considered above. It is defined thus:

К _year = Residual value of OB / Balance (initial) cost of PF.

As well as the previous indicator, it is expedient to consider it in dynamics. It shows what percentage is the residual value in the book value at a certain point in time. The expiry ratio shows the level of availability of funds for further operation.

The renewal factor (K _ob ) is another very important indicator that shows how much of the value of the PF at the end of the period chosen for the calculation is the new production PF. It is calculated as follows:

To _ob = New OB / Cost of all OF at the end of the selected period.

The source of information for calculation, as a rule, is the balance sheet, and for accounting the balance sheet is taken, i.e. initial cost. It should be noted that the renewal of funds can occur not only as a result of the purchase of modern equipment, but also due to the modernization of those facilities that the enterprise has available.