Basic aspects of financial and tax accounting of low-value fixed material assets

The peculiarities of general and tax accounting of low value fixed material assets in the sector of depreciation charging, display of costs for their maintenance and operation have been analyzed as well as their disposal for various reasons, the main attention being focused on the problematic points.

The rules to shape the depreciating value have been worked-out as the methods of depreciation calculating of similar assets, i. e. the display records of depreciation costs in the tax accounting, the possibility of their revaluation having been analyzed. The display records of accounting and tax rates for repairs and improvements expenses (upgrades, modifications, etc.) of low value fixed material assets have been characterized. The procedure of disposal of these assets for the liquidation and sale reasons, as well as the display of accompanying expenses, have been clarified according to the National Accounting Standard and the Tax Code of Ukraine.

Recommendations for harmonizing of the rules of general and tax accounting of the low value fixed material assets operation and disposal to reduce the amount of accounting procedures have been offered.

Keywords: low value fixed material assets, fixed assets, general accounting, tax accounting, depreciation.