Revaluation of capital assets
Timely revaluation of fixed assets of the enterprise is extremely important procedure. Due to reassessment, you can set the actual value of fixed assets of your company on the market at the moment. Otherwise, if we neglect this process, there is high risk of reducing profitability.
Typically, the reassessment is carried out at the beginning of the year and its results are valid until the re-revaluation. Cost of certain types of assets in the possession of your organization periodically fall or rise in its price. Thus, if the beginning of the year re-assessment showed impairment of certain elements of the company, the subsequent annual payments to the tax authorities in proportion to decrease. If the value of these items has increased, it allows you to receive additional revenue, as authorized capital of the company now has more.
It is important to understand all major aspects of misconceptions about the current state of company assets. Revaluation to be performed by specialists, is able to optimize many of the accounting procedures and significantly reduce production costs.
The review is conducted on three points:
1. We compute the value of fixed assets by comparing them with similar elements, and their declared value. In this calculation was adopted for the actual amount at 1 January following the reporting year.
2. Ongoing reassessment of all material assets in the currency of the company. To determine the total cost, taking into account the accepted course of the central bank at the end of the reporting year, namely on 31 December.
3. Are indexed for all funds of the company with the specific calculations for the original price and the total depreciation of assets. This procedure is the same as the first step revaluation is taken on January 1 of next fiscal year.
It is clear that most immediately precedes the revaluation procedure ascertain whether this process. If the bulk of the assets of the company does not have any sharp sharply expressed tendency to change its value during the year, the reassessment in this case, we can say as unnecessary and useless work. Thus, if preliminary investigations have shown the need for a revaluation of fixed assets of the company, then you can start the preparation and execution of all required documents (list of documents varies depending on the major groups of property assets).
The list of documents necessary for assessing:
1. Statement of fixed assets at the beginning of the year.
2. Passports BTI on buildings.
3. Design and construction documents for the building (in the absence of passports BTI).
4. Extract from passports BTI (if valued part of the building)