Open AccessREPAIRS OF OWN AND LEASED FIXED ASSETS: ORGANIZATIONAL AND METHODOLOGICAL ASPECTS OF ACCOUNTING
Author(s) -
Julia Krot,
Наталія Миколаївна Бразілій,
О. Shynkarenko
Publication year - 2020
Publication title -
fìnansovo-kreditna dìâlʹnìstʹ: problemi teorìì̈ ta praktiki
Language(s) - English
Resource type - Journals
eISSN - 2310-8770
pISSN - 2306-4994
DOI - 10.18371/fcaptp.v3i34.215428
Subject(s) - fixed asset , lease , modernization theory , business , asset (computer security) , current asset , work (physics) , working capital , order (exchange) , accounting , object (grammar) , legislation , operations management , finance , computer science , economics , production (economics) , engineering , computer security , microeconomics , mechanical engineering , artificial intelligence , law , political science , economic growth
. The main results of the research concerning organization and reflection in accounting of own and leased fixed assets repairs of the enterprise are investigated in the article. The enterprises support their fixed assets in working condition and ensure their functioning in a way of their improvement and with the help of the servicing system and the system of planned and preventive repairs. Having the result of the research it was found that there is no clear definition of the concept of modernization, repairs and other types of improvements in the legislation. However, the analysis of a number of departmental regulatory documents and own considerations gave an opportunity to distinguish the content of the concepts of ordinary repairs and overhaul, improvements, modernization and servicing of the fixed assets. It is established that for the accounting system it is important to distinguish clearly between types of work concerning to the fixed asset. If the works are provided only to support the object in working condition, then we are dealing with repairs and if in future they will increase the economic benefits from its use,then this is an improvement (overhaul).It is determined that legal details and the terms of the lease agreement are important for further repairs accounting and improvements of theleased fixed assets.Any expenses that an enterprise carries out to support an object of the fixed assets in working condition in order to obtain the original amount of future economic benefits from its use, the enterprise includes to the expenses of the reporting period. If the management thinks that performed works will lead to the improvements of thefixed assets, the accountant should collect the repair costs in order to increase the initial cost of the overhauled fixed assets to the cost of the incurred expenses.Keywords: repairs, improvement, fixed assets, servicing, modernization, expenses, initial cost, amortization.JEL Classification M40, M41Formulas: 0; fig.: 0; tabl.: 0; bibl.: 18.