IBE - what is it? Accounting for low-value and short-wearing items
Accounting for low-value wearing items(IBE) is an extremely important category in accounting. In its activities, no enterprise can do without the above phenomenon. In this article we will try to give the fullest and most comprehensive answer to the question: "IBE - what is it?"
A bit of theory
Any enterprise buys and uses a lotproducts that can not be attributed to fixed assets. Here they are in the accounting and are called low-value items. In order to be more clear, we will tell you what exactly is going on.
What can be attributed to the IBE
In fact, low-value and wearableobjects are means of labor, but their value is included in the stocks of the enterprise. The main principle of assigning a particular equipment, tool, etc. to the IBE is determining its service life, as well as the initial price.
It should be borne in mind that to the IBE we include a partInventories of the organization whose service life is less than one year, while their cost does not matter (they are wearing out).
Another principle of referring goods to thisgroup is the upper limit of the value of low-value wearing items. It is she who determines whether to attribute them to fixed assets or to the IBE. Thus, the cost of MBE is a significant criterion.
Using this definition, to low-valuewearing items, clothing, footwear, office equipment, utensils, household items, etc. Regardless of the useful life and cost, the IBE group also includes specialized tools, narrow-purpose devices necessary for production; replacement parts of equipment; tools for fishing; chainsaws.
To MB-subjects can not be attributedagricultural machinery and tools, construction equipment and tools, working form of livestock. All this is included in fixed assets irrespective of their service life and cost.
A bit of history
The money spent by the organization to purchasecertain items should not be included in the expense item. These things can be used for a long time, and can have a one-time use. In the first case we are talking about fixed assets. But in the second - on the negotiable. And the expense is recognized at the time of writing-off. So the accountants thought and thought. But even in the last century, experts in this field came to an important decision: items that are used for several years and which at the same time have a fairly low cost, it is difficult to be classified as fixed assets. Therefore, our colleagues decided to remove some of the objects from this category. They were called low-value wearing items (IBE) and included in working capital.
Criteria for referring goods to an infantry fighting vehicle
In the title of this term there are already twoprinciple: a small price and a long service life - fast wear. The main criterion was the cost limit and service life. The limit changed from time to time. But the term of service has always been understood for one year. Hence, theoretically there could be only four variants of attributing the acquired things to the category we are considering:
- The item costs less than the cash limit, but it is in operation for more than one year.
- The thing costs less than the limit, but it serves less than a year.
- The item costs more than a limit, it serves more than 12 months.
- The facility costs less than a limit and serves less than a year.
Previously, only the fourth group could be attributed toIBE and call the working capital. Initially, it was assumed that the first, second and third groups would be attributed to fixed assets. But in practice, people remembered about the price limit and forgot about the time of service. Thus, the IBE became an independent group. Entire departments of institutes were engaged in research of low-value and quickly wearing items.
How to work with the IBE. Practice theorists vs
Practice worked out several options:
1. The objects on 12 account "Low-value quick-wearing items" were brought in and handed over to operation. They passed through the purchase price in the asset. And at the end of each month it was written off for expenses of 1/12 of this price. That is, the service life could be more than a year, but the cost of the equipment or, say, the inventory was written off precisely in 12 months.
2. At commissioning of the object, wear was immediately accrued at 50%. And the remaining 50% - at the time of its write-off.
The second option was used, of course, more often. It was more simple for the accountant. In addition, the first had its drawbacks. In the month of purchase, the entire value of the object passed through the balance sheet, and this illogically increased the profit of the given month. Further, of course, a uniform depreciation decrease the profit of subsequent reporting periods, but this was not entirely correct. From the scientific point of view, both options were imperfect.
There was one more drawback in accounting IBE. There are such things, the price of which is small. Practitioners accounted for the fact that these items were immediately written off to current expenses. And there is no need for any depreciation and wear. Quite convenient, is not it? But the theorists were very embarrassed by this approach. However, the outcome of the case, their opinion is not particularly affected. Practice remains a practice, because it all reduced the profit of the enterprise in the month of purchase, and therefore, simplified the work of accountants.
Later, they decided to abolish the IBE, but this was noteliminated the problem. But this is all - yesterday's day. And today, low-value and wearing items still exist, and their records are kept. About how this happens, and will go further. So, IBE: what is it and what does it eat?
Work with PBU 5/98
Accounting for low-value and short-wearing itemsis carried out in accordance with the provisions of Accounting PBU 5/98 ("Accounting for inventories"). The life cycle of low-value wearing items has three stages: arrival, operation, disposal. In accordance with this, the following stages of accounting are distinguished:
- issue of IBE;
- putting into operation;
- writing off the IBE.
The first and second versions are made by analogy with the order of accounting of materials. But the MBP in operation has its own characteristics, which are due to the choice of the type of accounting and write-off.
Low-value items, the price of which is inwithin the limits of 1/20 of the established limit for the conventional unit, are written off into production costs as they become operational. For BMPs above 1/20 of the specified minimum, it is customary to accrue depreciation. It is usually calculated in such ways: percentage, linear, proportional to the volume of output. Briefly explain what it is.
When using the linear depreciation methodbased on the useful life of the IBE. Accrualing depreciation in percentage terms, one of two options is used: in the amount of 100% when transferring into operation or at a rate of 50% of their price when issued from a warehouse for use, and the remaining 50% - on disposal. Balances from write-offs of the IBE (material values) come at the market price as of the write-off date and are recorded for the financial result (DT 10, KT 80).
More details about the account: stages, features, nuances
Each enterprise maintains an account of the IBE. How does this happen in practice? The algorithm is simple:
The organization's accounting department arrives at goods.
It monitors security.
Determines the cost of low-value wearing items.
It monitors the service life.
He writes off the worn out MBE.
Since 2014, when things are put into operationThe depreciation of the BMP is not calculated on the whole cost, but on the half minus the residual value. The rest in 50% is charged already at write-off. When transferring low-value, fast-wearing goods for use, they are assigned to materially responsible people. Then they are assigned inventory numbers, which simplifies inventorying. At the last stage, an act of write-off is made (for a sample of filling see below), the IBE.
These items must not be forgotten to be removed fromaccounting (from a materially responsible person). Enterprises independently determine the value limits for the IBE. What does this mean? Absolute benefit. Because the mentioned category is, in fact, the main means. MBE in operation undergoes moral and physical deterioration, the cost of fixed assets is reduced. In the balance sheet they pass at the residual value, which is the difference between the initial price and the amount of accrued depreciation for a certain reporting period. The initial cost of the IBE is also included in the costs of acquiring them.
Wear and write-off
Depreciation of the IBE is part of the costs in production. To calculate depreciation for each individual item, as for fixed assets, is difficult. Because they choose one of the two ways of accounting IBE (what is it - we painted in detail above), according to the accounting policy of the enterprise. There is a special act of writing-off. A sample of such a document, presented in the photo below, will help orient the beginning accountants in this matter.
It happens that IBEs issued for use are immediately written off: debits of accounts 20, 23, 26, 25, 31, 43. Or DT 29, 08, 88, 81, 96. Credit account 12, sub-account 1.
Accounts for accounting IBE
To account for the movement of the MBP and its wear and tear,different accounts: 13, 12, 15, 16, 48 ... All actions related to the receipt of the IBE are the same as when accounting materials, that is, 15, 16 accounts are used. Then all operations are reflected in advance in DT15. Then they come and write off to the IBP account No. 16.
The failed objects are made out through the act of retirement.
Well, we have considered such a concept asIBE: what is it, how are items of this category recorded and written off? I would like to hope that the time spent reading the material was not wasted for you.