Capitalization of expenses: accounting when drawing up estimates. Determine what capitalized and non-capitalized costs are. Give examples for companies in various industries Is training included in capitalized costs

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To find out whether the proposed concepts are differentiated, whether one is an integral part of the other, or they are operated as equivalent, it is necessary to determine the essence of capital investments and capitalized costs.

Technical development makes it necessary to change all factors of the production process.

In turn, changes in the internal structure of the production organism, as a rule, require capital investments.

The legislator defined capital investments as investments in fixed assets (fixed assets), including the costs of new construction, expansion, reconstruction and technical re-equipment of existing enterprises, the acquisition of machinery, equipment, tools, inventory, design and survey work and other costs (Art. one Federal law dated February 25, 1999 No. 39-FZ (as amended on July 24, 2007) "On investment activities in Russian Federationcarried out in the form of capital investments ").

Capital investments are considered as a way of reproduction of fixed assets: replacement of individual worn-out parts of fixed assets, replacement of equipment in general, overhaul of existing fixed assets, technical re-equipment, reconstruction or expansion of existing production at an enterprise, purchase of new equipment or construction of new production facilities.

The costs incurred by the enterprise for capital investments in an existing fixed asset (during modernization, re-equipment) increase the value of the fixed asset, accumulating first on account 08 "Investments in non-current assets", and then on account 01 "Fixed assets". If capital investments in fixed assets have led to the formation of a new object (reflected in the accounting records, as indicated), the amount of such investments is the initial value of such fixed asset object.

As for the accounting of capital investments by a taxpayer - an industrial enterprise, in accordance with paragraph 9 of Art. 258 of the Tax Code of the Russian Federation, the taxpayer has the right to include in the expenses of the reporting (tax) period the cost of capital investments in the amount of not more than 10% (not more than 30% - in relation to fixed assets belonging to the third - seventh depreciation groups) of the initial cost of fixed assets, and also no more than 10% (no more than 30% - in relation to fixed assets belonging to the third-seventh depreciation groups) of expenses incurred in cases of completion, additional equipment, reconstruction, modernization, technical re-equipment, partial liquidation of fixed assets.

Moreover, in accordance with paragraph 3 of Art. 272 of the Tax Code of the Russian Federation, expenses in the form of capital investments, provided for in paragraph 9 of Art. 258 of the Tax Code of the Russian Federation, are recognized as indirect costs that reporting (tax) period for which, in accordance with Ch. 25 of the Tax Code of the Russian Federation accounts for the start date of depreciation (the date of change in the initial cost) of fixed assets in respect of which capital investments were made.

Now you need to figure out what capitalized costs are.
The legislator does not define this concept. So, the Tax Code of the Russian Federation uses this concept only once - in sub. 3 p. 3 art. 273 of the Tax Code of the Russian Federation, noting the peculiarities of accounting for expenses as part of the taxpayer's expenses in relation to the costs of developing natural resources (Article 261 of the Tax Code of the Russian Federation) and the cost of research and (or) experimental design (Article 262 of the Tax Code of the Russian Federation).

Therefore, to find out the meaning of this category, you need to refer to special regulations, as well as international standards. financial statementsapplied in accordance with the Decree of the Government of the Russian Federation dated 06.03.1998 No. 283 "On approval of the Program for reforming accounting in accordance with international financial reporting standards."
Capitalization as an economic category means the attribution of incurred in current period costs to long-term assets of the enterprise.

The capitalized costs are considered as costs incurred by the entity on the entity's so-called qualifying asset and included in its cost. Under the asset in in this case means an asset that necessarily takes a significant amount of time to prepare for its intended use or sale. Qualifying assets can be property, plant and equipment, construction in progress, investment property, inventory. Assets that are ready for their intended use or sale are not qualifying assets; investments and stocks that are produced in large quantities on a recurring basis and over a short period of time on a daily basis.

The criterion for capitalization of costs directly related to the acquisition, construction or production of a qualifying asset is the ability of the enterprise to obtain economic benefits in the future. Costs that do not meet this condition should be included in the costs of the period to which they relate.
It should also be borne in mind that when accounting for the capitalized costs of the relevant asset, the accounting treatment is influenced by the presence of a link between the qualifying asset and funds allocated for its restoration, reconstruction, modernization, etc.

The accounting procedure for costs (capitalization of costs or their allocation to expenses) can have a significant impact on the financial statements and financial results of the enterprise (mainly through the distribution of costs between reporting periods). Thus, the write-off of costs in the period when they are incurred affects the indicators of only one reporting period, while the capitalization of costs in the value of an asset leads to an impact on the financial result of several reporting periods by reflecting depreciation expenses.

In accordance with the requirements of International Financial Reporting Standards, property, plant and equipment are stated at purchase or construction cost less accumulated depreciation and accumulated impairment losses. In an industrial enterprise, such cost includes, for example, the costs of replacing plants and equipment if they meet the recognition criteria. Renovation and renovation costs are capitalized and replaced items are written off. All other maintenance and repair costs are recognized in the income statement when incurred and are not capitalized. Expenditures that improve or extend the characteristics of an asset from its original specification are recognized as capital expenditure and increase the cost of that asset. Such expenses of the enterprise, which are directly related to the acquisition of a license, are subject to capitalization in the balance sheet, that is, to be reflected as an intangible asset. But regular royalties are accounted for as an expense in the relevant period.

If, after the acquisition of the asset or parts for its production, work on its production or bringing it to a condition suitable for use has not begun, then capitalization of costs is not carried out. It is not carried out during the period during which the work was suspended due to conservation, downtime. Capitalization stops when all work on the asset is completed, while the administrative work on the asset can continue, and minor deficiencies can be eliminated.

It is worth noting such a process of capitalization of costs as costs - interest on loans and borrowings received, for example, to finance the construction of fixed assets. Such interest is capitalized as part of the cost of an item of property, plant and equipment during the period of construction and preparation of the item for operation. Other expenses on credits and borrowings are reflected in the income statement.
The costs of the enterprise are either capitalized in the cost of new fixed assets (new construction, purchase of equipment), or are attributed to an increase in the initial cost of fixed assets (reconstruction, technical re-equipment), provided that as a result of modernization and reconstruction, the originally adopted standard performance indicators are improved (increased) (term useful use, power, quality of application) of the object (clause 27 of the 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 (revised on November 27, 2006) (hereinafter - PBU 6/01)). At the same time, the costs of restoring an item of fixed assets, other than modernization and reconstruction (all types of repairs), are reflected in the accounting records of the reporting period to which they relate (clause 27 of PBU 6/01), that is, they are expenses of the current period. Thus, PBU 6/01 distinguishes between the work on the restoration of fixed assets into capital and current.
Thus, the cost of capital investments, like the capitalized costs, form the cost of the fixed asset itself, to which they are directed, including the initial cost (when creating an object). However, capitalized costs are characterized primarily by the purpose of their presentation - to obtain economic benefits in the future. This is how one can characterize the costs of geological exploration, the purpose of which is to make a profit from the extraction of minerals. The capitalized costs can be significant and subject to gradual write-off, since the period of receipt of future income is comparable in duration to the property, plant and equipment

The phenomenon when the costs of the acquisition, further maintenance and modernization of an item of fixed assets are included in its cost is called capitalization of costs. The correct assignment of certain acquisitions to a company's asset, and not to a liability, affects the magnitude of the financial result of activities and is necessary to understand the existing problems, achievements and development prospects.

In international financial reporting, it is customary to divide costs into two types:

1. Capital

These are expenses that will bring economic benefits to the organization for more than 12 months. What exactly will be attributed to capital costs is determined by the scope and scope of the organizations. For some firms, the order of a new MFP falls into this category, for others - the purchase of expensive machines, for others - the construction of a new warehouse.

In practice, capital expenditures are recognized as investments in fixed assets and non-current assets. Their accounting and evaluation are governed by IFRS No. 16, 23, 38.

1. Operating

These are the costs associated with the current activities of the company: funds for the purchase of raw materials and materials, for advertising and promoting the company, remuneration of workers and managers, etc. They are referred to the expenses of the current period.

The first type of costs is capitalized - i.e. included in the balance sheet asset, which leads to an improvement in the financial results of the enterprise. The disadvantages of capitalization include an increase in income tax and the need for periodic revaluation of fixed assets, associated with a waste of money and labor.

What costs can be capitalized?

IFRS provisions state that the following types of costs are subject to capitalization:

• for the acquisition or production of a fixed asset;
• its revision for further use;
• commissioning;
• further maintenance and repair.

IFRS rules indicate that costs are capitalized if two conditions are met:

• they have an accurate cost estimate;
• they are designed to increase the volume of economic benefits brought by the fixed asset to the enterprise.

For example, the cost of assets can be added to the costs of the following actions:

• modernization of the machine, as a result of which it began to produce more products per unit of time;
• repair of equipment, thanks to which the quality of manufactured goods has increased;
• rework costs that have increased the life of the machine, etc.

Costs can be capitalized as long as the asset's value equals fair value, i.e. will not be comparable to the amount of money that can be obtained from the sale of fixed assets at the moment in conditions of free competition.

If the costs do not have a clear cost expression or there is no connection between them and the possibility of additional benefits in the future, they should be attributed to current costs.

Capitalize or write off to recurring expenses?

In the activities of an enterprise, situations are possible when the decision on capitalization depends solely on considerations of expediency and expert judgments.

For example, a cafe bought a batch of chairs for 1,000 rubles, which are planned to be used for more than one year. IFRS does not introduce the concept of a unit of property, plant and equipment. This means that small objects can be combined for financial accounting purposes into a single whole and their value can be capitalized.

Whether such a decision is advisable is determined by the chief accountant or the head of the organization. On the one hand, capitalization will increase the value of assets and improve the performance of the cafe. On the other hand, it will cause an unreasonable increase in income tax and will force regular revaluations of one more item of fixed assets.

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Capital expenditure, or CAPEX, is the cost of acquiring non-current assets, as well as their modification (completion, additional equipment, reconstruction) and modernization.

The main characteristic of capital costs is the duration of their use. If the company plans to use investments in assets for more than one year, then, most likely, they will be classified as CAPEX. What counts as a capital expenditure for a company depends largely on the scope of its activities and the established rules of its industry. For example, for one company capital investment the purchase of a new printer will be considered, for the other - the acquisition of a license, and for the third capital investment will be the purchase or construction of a new office building. In practice, capital expenditures for a company are most often investments in fixed assets and intangible assets.

Capital expenditures are accounted for in accordance with IFRS in accordance with IAS 16 “Fixed Assets”, IAS 23 “Borrowing Costs”, and IAS 38 “Intangible Assets”.

Operational expenditure, or OPEX (short for operational expenditure), are the costs incurred by a company in the course of its day-to-day operations. Examples of operating costs are cost of production, sales, administrative, management costs, etc. The main task of top managers of a company is to tightly control and often reduce operating costs in parallel with an increase in company revenues. Thus, the share of operating expenses in relation to the company's revenue is always an indicator of the company's management efficiency.

In accounting, CAPEX leads to the capitalization of costs on the company's balance sheet, which, in turn, increases the value of assets and the net profit of the company for the reporting period (since the costs incurred in the current period are capitalized and then amortized over several years). However, capitalizing on costs also has drawbacks. First, the company will pay large amount income tax. Second, the company is required to test its assets for impairment on a regular basis.

The recognition of OPEX in accounting leads to a decrease in the net profit of the current period, but at the same time the company pays a lower amount of income tax.

In practice, in about 80% of cases, the company immediately determines to which type certain costs belong. Discussions arise over the remaining 20%. We propose to deal with the most frequently asked questions.

Fixed assets

In order to understand this, it is necessary to return to the definition of fixed assets in accordance with IAS 16 "Fixed Assets".

Fixed assets are tangible assets that:

• are intended for use in the production or supply of goods and the provision of services, for rent or for administrative purposes;
• intended for use for more than one reporting period.

• it is probable that the entity will receive the related future economic benefits;
• cost a given object can be reliably estimated.

1. the purpose of the object (production, provision of services, leasing, etc.);
2. the expected period of use of this object;
3. the probability of receiving future economic benefits from the use of this item;
4. opportunity to estimate the value of the object

So, let's look at some of the nuances.

Capitalize or recognize in the current period inexpensive
homogeneous objects purchased in large quantities?

The cost of one such object may be insignificant (for example, 1,000 rubles), but the total cost of a batch of objects may be quite significant for the company. What to do in such cases? Recognize these objects as CAPEX or OPEX?

There is no single answer. IAS 16 in paragraph 9 says that the standard does not define the unit of measurement that should be used when an item is recognized as property, plant and equipment. This means that in some cases a company may combine minor, homogeneous items into one fixed asset with an aggregate value. In each case, the company will need to apply professional judgment. It is only important to remember that the estimated useful life of such objects should be approximately the same and exceed 12 months.

Example 1
The Mone coffee shop bought 100 identical chairs for 5 thousand rubles. a piece. The managing manager of the coffee shop plans to use these chairs in the new, refurbished coffee hall for his customers for about three years. How to account for the costs incurred - as part of CAPEX or OPEX?

First of all, you need to understand whether the costs incurred meet the requirements of IAS 16 for recognition as a fixed asset. Consider table 1.

Capitalize or recognize spare parts in the current period?

In most cases, spare parts, such as consumables or small parts, are classified as inventories in accordance with IAS 2 Inventories and are recognized in current expenses as they are used.

However, there are situations when the cost of spare parts can be capitalized, that is, recognized as property, plant and equipment. In this case, we are talking about expensive spare parts for some items of fixed assets. For example, a company may capitalize on water and air transport engines, high-value manufacturing machine parts, aircraft seats, and so on. When registering such parts, it is important to remember that they are likely to be capitalized separately from the main asset. For example, if the useful life of an engine is five years and the remaining useful life of the aircraft is eight years, then the engine, when replaced in the aircraft, would be accounted for as a separate fixed asset with a depreciation period of five years. The aircraft will be depreciated over the remaining eight years. Wherein book value the engine to be replaced is subject to derecognition in accordance with paragraphs. 67-72 IAS 16.

Capitalize or recognize in the current period the cost of permanent improvements to the leased premises?

Example 2
The management company of the Monet coffee chain decided to reorganize the rented office and add two more offices: for the senior manager and the chief accountant. During the renovation, additional partitions were erected and glass doors were installed. These improvements are inseparable from the rented premises: as soon as the lease term expires, the company will not be able to use these offices. Dismantling them and using the leftover material in another place will also fail, since dismantling will cause significant damage to the rented premises.

So how do you account for the costs incurred - as part of CAPEX or OPEX? As we said earlier, there is no universal answer, it all depends on the specific situation. First, you need to understand whether the costs incurred meet the requirements of IAS 16 for recognition as a fixed asset. Consider table 2.

When capitalizing on inseparable improvements, useful life is often questionable. In most cases, the useful life cannot exceed the lease term of the premises. However, non-standard situations are also possible.

Example 3
The company rents premises from the parent company or from a company that is controlled by the same shareholders (that is, they are related parties or companies under common control). A standard lease is concluded for five years and then automatically renewed. The tenant company has reorganized the premises. The company estimated that inseparable improvements in the leased premises have a useful life of eight years. Can the company set a longer useful life (eight years) than the lease term for the premises (five years)? In this case, it is necessary to carefully analyze the lease agreement. If the company plans to lease this premises for at least eight years and the agreement provides for an automatic renewal of the lease after five years (that is, there is a high, more than 95% probability that the agreement will be renewed after five years), then the company has the right to amortize inseparable improvements for eight years.

Intangible assets

First you need to understand what an intangible asset is. In accordance with IAS 38 Intangible Assets, an intangible asset is an identifiable non-monetary asset that does not have physical substance.

“An asset meets the criterion of identifiability if it:

1. is separable, that is, can be detached or separated from the enterprise and sold, transferred, licensed, leased or exchanged individually or together with a related contract, asset or liability, regardless of whether the enterprise intends to do so;
2. is the result of contractual or other legal rights, regardless of whether these rights are transferable or separable from the enterprise or from other rights and obligations. "

“An intangible asset is recognized if, and only if:

1. it is considered probable that the future economic benefits associated with the item will flow to the entity;
2. the cost of the asset can be measured reliably. "

Consider the procedure for recognizing the costs associated with the creation of its own intangible asset within the company. For accounting purposes, IAS 38 divides the process of creating an intangible asset within a company into two main parts:

1. research stage;
2. development stage.

Research stage

Examples of activities in the research phase are:

• activities aimed at obtaining new knowledge;
• search, assessment and final selection of areas of application of research results or other knowledge;
• search for alternative materials, devices, products, processes, systems or services;
• formulation, design, evaluation and final selection of possible alternatives to new or improved materials, devices, products, processes, systems or services.

Development stage

Examples of activities during the development stage include:

• design, construction and testing of prototypes and models before production or use;
• design of tools, templates, molds and stamps, suggesting new technology;
• design, construction and testing of selected alternatives to new or improved materials, devices, products, processes, systems or services.

1. the technical feasibility of completing the creation of the intangible asset so that it can be used or sold;
2. the intention to complete the creation of the intangible asset and use or sell it;
3. the ability to use or sell an intangible asset;
4. how the intangible asset will generate probable future economic benefits [the company must demonstrate that there is a market for the product of the intangible asset or the intangible asset itself, and also assess the future economic benefits of this asset, using the principles of IAS 36 Impairment of Assets; if the asset is supposed to be used for internal purposes, then it is necessary to prove the usefulness of such an intangible asset for the company];
5. availability of sufficient technical, financial and other resources to complete the development, use or sale of an intangible asset (an example can be a developed and approved business plan and / or confirmation of external creditors about the readiness to finance the development and use of the created intangible asset);
6. the ability to measure reliably the costs associated with an intangible asset during its development.

• costs of materials and services used or consumed in the creation of an intangible asset;
• cost of employee benefits [as defined in IAS 19] arising from the creation of an intangible asset;
• payments required for registration of legal rights;
• amortization of patents and licenses used to create the intangible asset.

However, some types of costs can not be attributed to the initial cost of the created intangible asset and shall be recognized in expenses as they arise. These are:

• commercial, administrative and other general overhead costs, other than those that can be directly attributed to preparing the asset for use;
• initial operating losses, as well as losses associated with the internal inefficiency of the process of creating an asset, incurred before reaching the planned level of performance of the specified asset;
• costs of training personnel to work with the created intangible asset.

It should be remembered that, in accordance with paragraph 64 of IAS 38, the costs of trademarks, title data, publishing rights, customer lists and items similar in substance created by the enterprise itself cannot be distinguished from the costs of developing the business as a whole. Consequently, such items should not be recognized as intangible assets. Also, goodwill generated by the entity itself is not subject to recognition as an intangible asset in accordance with paragraph 48 of IAS 38.

Table 3

Increase (capitalization) of the value of fixed assets as a result of repairs

It follows from this that any costs associated with the operation of an item of fixed assets provided by the manufacturer of the item of fixed assets, even if it is associated with the replacement of individual parts of the item, regardless of their value, are not subject to an increase in the initial cost of the item of fixed assets, but are running costs.

As an example, available for easy understanding of this standard at the household level, you can cite maintenance passenger car... After a certain amount of time and mileage, belts, gaskets, oil seals must be replaced, and certain units in the units are also replaced. This is due to the fact that the resource of some components and assemblies is less than the service life of the entire object as a whole, as indicated by the manufacturer in the service book.

Thus, the implementation of these actions (replacement of parts, assemblies and assemblies), which were initially provided by the manufacturer, does not in any way affect the originally envisaged service life of the fixed asset object and is not subject to capitalization.

(assets) for the reason that the income expected as a result of the expenses incurred will occur in subsequent periods.

In other words, capitalization of expenses means that expenses directly related to the acquisition, construction, production, etc. of an asset are fully included in the cost of the asset, and expenses that are not directly related to the acquisition, construction, etc., increase the cost of the asset only to the extent permitted by the relevant regulatory act.

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