Slide 2 Tutorial: Business Academy Topic: Fixed Assets
Depreciation (1 st part) Prepared by : Ing. Jana ustrov Projekt
Anglicky v odbornch pedmtech, CZ.1.07/1.3.09/04.0002 je
spolufinancovn Evropskm socilnm fondem a sttnm rozpotem esk
republiky. Slide 3 Physical as a result of use, by external
influence Moral as a result of technical development Depreciation =
tangible fixed assets depreciation per an accounting period
Accumulated depreciation = total depreciation of the fixed assets
for the entire period of use Purchase priceaccumulated
depreciation=residual price Slide 4 Accounting depreciation They
express the actual assets depreciation They are in accordance with
physical and moral depreciation of assets They are based on the
Accounting Act. The company determines them in their depreciation
schedule. Tax depreciation They are based on the Income Tax Law
They express maximum amount that can be as depreciation applied as
a tax deductible expense Slide 5 1. The inclusion of depreciation
in the property under the Income Tax Act Depreciation class Minimum
useful life Example 13 yearsOffice machinery, computers 25
yearsCars, television receivers, pumps 310 yearsCranes, lifts,
turbines, boilers 420 yearsWooden and plastic buildings, chimneys
530 yearsProduction buildings, bridges, roads 650 yearsOffice
buildings, hotels, schools Slide 6 2. Determination of depreciation
method S TRAIGHT - LINE DEPRECIATION The maximum depreciation rates
are assigned to the depreciation groups Annual depreciation =
(input price x annual rate) / 100 Depreciation category Rate in the
1 st yearRate in following years 120,040,0 211,022,25 35,510,5
42,155,15 51,43,4 61,022.02 Slide 7 A CCELERATED DEPRECIATION The
rules are defined in the Income Tax Act The basis are coefficients
that are assigned to depreciation groups The period of depreciation
is not shorter, but the depreciation is higher at the beginning in
comparison with straight-line depreciation 1. year = input price
following years= 2 x residual price k1 k n k1 = coefficient in the
1st year of depreciation k = coefficient for following years n =
number of years that has been depreciated Slide 8 Depreciation
category Coefficient for the 1 st year Coefficient for following
years 134 256 31011 42021 53031 65051 Slide 9 Fixed assets that
were assigned to use have been depreciated Pieces of land, works of
art and collections have not been depreciated The selected method
of depreciation cannot be changed over the depreciation period
Depreciation is possible up to the amount of the purchase price Tax
depreciation has been expressed as annual Owner depreciates the
property Depreciation should be rounded up to the nearest crown
Slide 10 How have been fixed assets worn? What is the depreciation
group? Which law does the tax depreciation govern? What does
accumulated depreciation mean? What is the relationship between the
accumulated depreciation and the residual price? How do we
recognise that the property is fully depreciated? Is it possible to
change depreciation method during the depreciation period? Slide 11
tohl, P. Uebnice etnictv 2011 2. dl pro stedn koly a pro veejnost.
Znojmo: NAKLADATELSTV TOHL PAVEL ING. VZDLVAC STEDISKO,2011.ISBN
978-80-87237-36-6. varcov J. a kol. Ekonomie -strun pehled, teorie
a praxe aktuln a v souvislostech. Zln: TOPPEX, s. r. o., 2009.ISBN
978-80-903433- 7-5.