Amortization of the equipment which is not used in agricultural production

In publications there is a speech about an order of charge of amortization on selskozyaystvenny equipment which is used only on seasonal works in plant growing, and in the rest of the time of year doesn’t work.

How to charge amortization (wear) of agricultural machinery which is used on seasonal works in plant growing throughout the spring-and-summer period, and the rest of the time of year doesn’t work?

Amortization of fixed assets (further – OS) nachis­lyaetsya during term of useful use (ekyospluatatsiya) of object also stops on pe­riod its reconstruction, modernization, completion, an additional equipment and preservation (item 23 P (C) BU 7).

Therefore to equipment who temporarily isn’t used, it is possible to preserve.

The order of carrying out preservation of OS is defined by Poyolozheny No. 1183. For the enterprises (except strateyogichesky and state) this situation no­sit recommendatory character

Preservation of OS of the enterprise means a package of measures, directed on long-term (but no more than 3 years) OS storage in case of the activity termination at possibility of further restoration of their funkyotsionirovaniye.

To preserve OS, the enterprise should make the following papers (Situation No. 1183):

•   the feasibility study  on the decision of the enterprise about OS preservation;

•  the order (order) of the head on creation of the special commission for the solution of questions of a konyoservatsiya of OS;

• the act of temporary removal of OS from proizvodstvenyony process and their preservation;

•  the list of works, resources (material and trudoyovy) and the estimate of the expenses connected with carrying out preservation and degreasing of fixed assets of the enterprise;

•  the act of OS acceptance on preservation.

In accounting amortization of zakonserviroyovanny equipment isn’t charged since a month following after a month of transfer of object on a konseryovatsiya. That is for the period of preservation term of useful use of equipment lasts.

After degreasing of object the statement of removal of OS from preservation is drawn up and amortization charge since a month following after a month of input of object in operation (item 29 P (C) BU 7) renews.

In tax accounting at transfer to preservation of otyodelny objects of fixed assets of groups 2, 3, 4 bayolansovy cost of these groups doesn’t change (subitem 8.4.6 of the Law on profit). From this it follows that for the period of agricultural machinery preservation in tax uche­te amortization is charged.

The preserved objects of OS don’t participate in operating (economic) activities, poyoety the expenses connected with preservation, uchity­vayutsya on subaccount 977 Other expenses of usual activity.


The agricultural enterprise – the payer of FSN made the decision to preserve equipment in cost of 35 000 UAH., which won’t be used in production within 9 months.

Actual expenses on preservation (predusmotyorenny estimate):

• TMTs (paint, lubricant and other materials)-325 UAH.;

• a salary the working – 100 UAH.;

• contributions to social funds – 16,28 UAH., i.e. (13,28 % + 1,5 % + 1,3 % + 0,2 %) x 100 UAH.

Reflection of the specified operations in accounting uche­te it is representable in the table.

List of documents

1. The law No. 889 – the Law of Ukraine from 22.05.03 of No. 889-IV About a tax on the income of individuals.

2. The instruction No. 5 - the Instruction on the salary statistics, approved by the order of Goskomstat of Ukraine from 13.01.04 of No. 5.

3. An order No. 451 – the Order of filling and representation by tax agents of tax calculation of the sums of the income, nachisyolenny (paid) in favor of taxpayers, and the sums of the tax withheld from them, approved by the order GNAU from 29.09.03 of No. 451.

4. The letter No. 11127 – the letter of PF of Ukraine from 01.09.06 of No. 11127/03-02 Concerning payment of pension contributions.

(On Balans-Agro newspaper materials).