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GOVERNMENT OF THE RUSSIAN FEDERATION

ABOUT THE CLASSIFICATION OF FIXED ASSETS,
INCLUDED IN DEPRECIATION GROUPS

(as amended by Resolutions of the Government of the Russian Federation dated July 9, 2003 N 415,
dated 08.08.2003 N 476, dated 18.11.2006 N 697, dated 12.09.2008 N 676,
dated 02/24/2009 N 165, dated 12/10/2010 N 1011,
dated 07/06/2015 N 674)

First group cars and equipment

Second group cars and equipment Perennial plantings

Third group cars and equipment Means of transport Industrial and household equipment

Fourth group Building Facilities and transmission devices cars and equipment Means of transport Industrial and household equipment Working livestock Perennial plantings

Fifth group Building Facilities and transmission devices cars and equipment Means of transport Industrial and household equipment Perennial plantings Fixed assets not included in other groups

Sixth group Facilities and transmission devices Dwellings cars and equipment Means of transport Industrial and household equipment Perennial plantings

Seventh group Building Facilities and transmission devices cars and equipment Means of transport Perennial plantings Fixed assets not included in other groups

Eighth group Building Facilities and transmission devices cars and equipment Vehicles Industrial and household equipment

Ninth group Building Facilities and transmission devices cars and equipment Vehicles

Tenth group Building Facilities and transmission devices Dwellings cars and equipment Vehicles Perennial plantings

Instructions

When classifying an object as a fixed asset, check whether it has the following characteristics:
- the ability to bring economic benefits to the enterprise in the future;
- the organization does not intend to further resell the property;
- used for a long period of time (duration of use exceeds 12 months or one operating cycle lasting more than 12 months). If the property accepted for accounting meets the above criteria, then it should be reflected in fixed asset accounts.

You should know that all fixed assets are divided into groups, each of which has its own distinctive features.

1. Buildings are architectural and construction objects that create the necessary conditions for carrying out production activities, storing material assets, and are also used for management and non-production needs.

2. Structures are engineering and technical objects that perform technical functions in servicing the production process, but are not associated with changing objects of labor (tunnels, drains, overpasses, etc.).

3. Transmission devices are devices that transmit energy of various types, as well as liquid and gaseous substances (heating networks, gas networks, etc.).

4. Machinery and equipment, including:
- power machines and equipment designed for the generation and distribution of energy;
- working machines and equipment directly involved in the production process;
- measuring and control instruments and devices;
- computer and electronic engineering.

5. Vehicles.

6. Tools – means of labor involved in the production process for more than 1 year.

7. Production equipment and household supplies that are used to perform production operations and create safe working conditions (workbenches, work tables, etc.).

8. Household equipment that provides conditions for work and production maintenance (copiers, office furniture, etc.).

9. Land plots and perennial plantings.

10. Working, productive livestock and other fixed assets.

Please note that in accounting for taxation and depreciation purposes, all fixed assets are divided into 10 depreciation groups depending on their useful life. The period during which an item of fixed assets is capable of serving the purposes of the organization’s activities is considered. The first depreciation group includes property with a useful life of 1-2 years, the second - 2-3 years, the third - 3-5 years, the fourth - 5-7 years, the fifth - 7-10 years. The sixth includes property whose useful life is 10-15 years, the seventh - 15-20 years, the eighth - 20-25 years, the ninth - 25-30 years, the tenth - over 30 years.

note

There are the following groups of fixed assets (including according to PBU 6/01) Each enterprise has at its disposal fixed and working capital. The totality of fixed production assets and working capital of enterprises forms their production assets.

Helpful advice

For accounting and tax accounting purposes, the Classification of fixed assets included in depreciation groups is applied (Approved by Decree of the Government of the Russian Federation of January 1, 2002 No. 1, as amended on December 10, 2010). The cost of previously recorded fixed assets, the operation of which continues in the current year, is not subject to revision.

Sources:

• How to write off a loss that occurred during the period of application of the simplification

All property of an enterprise accepted for accounting is depreciated, that is, wears out over time. Depending on its useful life, it belongs to one of the depreciation groups. The useful life is the period during which the assets of the enterprise are capable of generating income.

Instructions

All depreciable property belongs to one or another depreciation group. There are ten such groups in total. So the first depreciation group includes short-lived assets, which range from one to two years. The second depreciation period is 2-3 years, the third - 3-5 years, the fourth - 5-7 years, the fifth - 7-10 years, the sixth - 10-15 years, the seventh - 15-20 years, the eighth - 20- 25 years, the ninth – 25-30 years, the tenth – over 30 years.

RESOLUTION
dated July 7, 2016 N 640
ON AMENDMENTS TO THE DECISION OF THE GOVERNMENT OF THE RUSSIAN FEDERATION OF JANUARY 1, 2002 N 1

The Government of the Russian Federation decides:
1. Approve the attached changes that are being made to the Decree of the Government of the Russian Federation of January 1, 2002 No. 1 “On the Classification of fixed assets included in depreciation groups” (Collected Legislation of the Russian Federation, 2002, No. 1, Article 52; 2003, N 28, Art. 2940; N 33, Art. 3270; 2006, N 48, Art. 5028; 2008, N 39, Art. 4434; 2009, N 9, Art. 1128; 2010, N 51, Art. 6942; 2015 , N 28, Art. 4239).
2. This resolution comes into force on January 1, 2017.

In the work of each enterprise or organization, fixed assets are used, which are part of the organization’s property, used as a means of producing goods, services, work or any management needs of the enterprise for a long time. When an organization takes a fixed asset into account, its initial cost is determined based on the actual, objective costs of acquisition, manufacturing, construction, transportation, etc. excluding VAT.

To account for fixed assets during operation, their residual value is determined, which is the difference between the original cost and depreciation during operation.

As you know, all property owned by an enterprise depreciates and wears out over time. Depreciation of fixed assets is considered to be the transfer of part of the cost of fixed assets to the cost of products, works or services. Depreciation is calculated over the entire useful life of the object, i.e. the period of time during which the application and use of an item of fixed assets can bring economic benefits to the organization. Each enterprise can determine the useful life independently or use the classification of fixed assets developed on the basis of OKOF - the All-Russian Classifier of Fixed Assets.

Further, depending on this indicator - SPI - the fixed asset can be assigned to one of the depreciation groups. The Tax Code defines only ten depreciation groups, and the classification of fixed assets included in one or another group is, in turn, approved by the Government of the Russian Federation.

Such a concept as “depreciation group” is used both for tax accounting purposes for calculating income tax, and for accounting purposes. The definition of depreciation of fixed assets for tax and accounting purposes differs.

Each depreciation group establishes a clear interval expressed by its useful life. It must be remembered that the lower limit of the interval of each depreciation group begins with the word “over”, that is, the lower limit is not included in the interval, and the upper limit ends with the word “inclusive”, that is, this figure is included in the interval of the depreciation group. For example, the third depreciation group is determined by a period of over 3 years and up to 5 years inclusive. That is, a fixed asset for which the SPI is established as 3 years is included in the second group, and with a SPI of 3 years 1 month in the third, at the same time, a fixed asset with an established SPI of 5 years will still belong to the 3rd depreciation group.

For taxpayers who have a good profit, it is most beneficial to establish SPI as early as possible, which will make it possible to write off the cost of the object as expenses earlier. For example, for the same third depreciation group, it is most profitable to set the period to 3 years 1 month.

The concept of “depreciation group” is formulated in paragraph 1 of Article 258 of the Tax Code of the Russian Federation and is used mainly for tax accounting purposes.

The organization's fixed assets, depending on their useful life, belong to one or another depreciation group for profit tax purposes (Clause 1, Article 258 of the Tax Code of the Russian Federation). The useful life of the asset is determined by the organization itself, taking into account the special classification approved by the Government of the Russian Federation.

Classification of fixed assets included in depreciation groups

In 2019, the Classification approved by Decree of the Government of the Russian Federation dated January 1, 2002 N 1 (as amended on April 28, 2018) is in effect. In accordance with this Classification, all fixed assets are divided into 10 depreciation groups.

Please note that the latest amendments to the Classification came into force retroactively and apply to legal relations that arose from 01/01/2018.

Depreciation groups of fixed assets 2019: table

The 2019 classification of fixed assets by depreciation groups is as follows:

Depreciation group number	Useful life of OS	Example of fixed assets belonging to the depreciation group
First group	From 1 year to 2 years inclusive	General purpose machinery and equipment
Second group	Over 2 years up to 3 years inclusive	Liquid pumps
Third group	Over 3 years up to 5 years inclusive	Radio-electronic communications
Fourth group	Over 5 years up to 7 years inclusive	Fences (fences) and reinforced concrete barriers
Fifth group	Over 7 years up to 10 years inclusive	Forest industry buildings
Sixth group	Over 10 years up to 15 years inclusive	Water intake well
Seventh group	Over 15 years up to 20 years inclusive	Sewerage
Eighth group	Over 20 years up to 25 years inclusive	Main condensate and product pipelines
Ninth group	Over 25 years up to 30 years inclusive	Buildings (except residential)
Tenth group	Over 30 years	Residential buildings and structures

How to determine depreciation group

To understand which depreciation group your fixed asset belongs to, you need to find it in the Classification. Having found it, you will see which group this OS belongs to.

If your OS is not named in the Classification, then you have the right to independently determine the useful life of this property, focusing on the service life specified in the technical documentation or the manufacturer’s recommendations. The established SPI will tell you which depreciation group your OS falls into.

As before, in 2014, the goal of accounting for fixed assets is not only an accurate reflection of the condition, availability and movement of fixed assets, but also the correct distribution of depreciation charges among cost items.

This problem can be solved by various methods of property classification. However, one should not assume that these methods contradict or replace each other. It would be fair to present them as a certain hierarchy of grouping characteristics, serving the most complete disclosure of information about each specific object.

The most comprehensive are the classification according to the methods of influence on the subject of labor, property and legal affiliation, degree of involvement and functional purpose. Their main goal is to determine the role and place of fixed assets in the total property of the enterprise and its economic activities.

The next, more detailed level of classification of fixed assets is the assignment of property to certain industry groups. The importance of this feature is often underestimated, despite the fact that, along with functionality, it determines the procedure for assigning depreciation charges to the corresponding cost items.

This type of classification is required as an element of accounting, analysis and reporting (primarily statistical), but it is especially necessary in cases of a multidisciplinary structure of activity.

The most important classification feature for accounting work and tax reporting is service life (operation).

It makes sense here to note that current legislation allows an enterprise to independently determine the depreciation period of its fixed assets, based on the characteristics of a specific production and economic process, the intensity of use of the property and other factors that determine the size of the period during which the available property is capable of generating income.

However, the most common practice has become the use of a general standard, which is reflected in the division of fixed assets into single depreciation groups.

The most detailed type of grouping, according to natural and material affiliation, is logically connected with the classification according to age, the so-called classification according to OKOF (Resolution of the Government of the Russian Federation dated January 1, 2002 No. 1 (as amended on December 10, 2010 No. 1011) “On the classification of fixed assets, included in depreciation groups").

Let us present all classification methods applied to fixed assets in the following table:

Sign of assignment to a classification group	Groups of fixed assets by economic content
Impact on the subject of work	Active Passive
Property and legal affiliation	Own Rented
Functionality	Production Non-productive
Degree of involvement	Ready to start Active On conservation Downtime according to plan (repairs, reconstruction)
Industry affiliation	Industry Agriculture Trade Connection Transport Construction Housing and communal services Education Culture Healthcare
Operational life	10 groups defined in the Decree of the Government of the Russian Federation dated January 1, 2002 No. 1 “On the classification of fixed assets included in the main groups”
Natural-material affiliation	Groups defined in OKOF.

When reporting on an organization's property, the required OS indicators are reflected in the reporting forms in the context of all the listed classification types. The standard classification of fixed assets used in accounting in 2014 is based primarily on the characteristics of their physical nature and useful life.

Based on the attribute of natural property, the standard - the OKOF classifier - provides for the combination of fixed assets into the following groups:

• buildings – a property group, including industrial buildings and structures, administrative buildings, warehouses and other buildings in which the organization’s economic activities are carried out;
• structures - a group of fixed assets, which are engineering and construction structures that perform special technical and technological functions. These include mines, wells, sewage treatment plants, bridges, tunnels, etc.;
• transmission devices - a group of property objects designed to transmit different types of energy and transport liquids and gases. As a rule, these are electrical and heating networks, various product pipelines and other similar elements of the enterprise infrastructure;
• machinery and equipment is the most extensive group of fixed assets, combining machine tools and various equipment. Due to its volume, this group is formed by several subgroups:
  • power machines and equipment;
  • working machines and equipment;
  • measuring and control instruments;
  • Computer Engineering;
  • other machinery and equipment.
• vehicles – a group that combines funds for general and special transport purposes;
• tool - property objects with the help of which a direct impact on objects of labor is carried out;
• inventory and accessories - devices that facilitate optimal production operations;
• other fixed assets - includes those categories of fixed assets that are not included in the previous groups.

Each of the groups classified by OKOF has its own detailed specification, revealing the structural differences of objects within the group. Property objects grouped in OKOF according to the criteria of material uniformity and purpose are assigned codes of the following structure:

• X0 0000000 - section;
• XX 0000000 - subsection;
• XX XXXX000 - class;
• XX XXXX0XX - subclass;
• XX XXXXXXX - view.

Each position of OKOF classification codes is a combination of a decimal digital code, a check number and a name. The classification of fixed assets is built up to the subclass level in a hierarchical manner. The last level of the classifier - types - is built on lists (facets) and is tied to the lower step of the hierarchy. The codes are a linking element between the two main standards of accounting and tax accounting of fixed assets - OKOF and the list of depreciation groups.

Depreciation groups and classification of fixed assets

The rules for maintaining tax accounting in 2014 suggest that the main classification criterion is the service life of the property. In the Decree of the State Standard of the Russian Federation “OK 013-94. All-Russian Classifier of Fixed Assets" establishes that all property of an enterprise, in accordance with this criterion, is divided into the following ten groups:

Group number	Useful life	Composition of the group
1	from 1 to 2 years inclusive	cars and equipment
2	more than 2 to 3 years inclusive	cars and equipment Perennial plantings
3	more than 3 to 5 years inclusive	cars and equipment Transport OS Production and household equipment
4	more than 5 to 7 years inclusive	Building cars and equipment Transport OS Production and household equipment Working and productive livestock Perennial plantings
5	more than 7 to 10 years inclusive	Building Facilities and transmission devices cars and equipment Transport OS Perennial plantings Fixed assets not included in other groups
6	more than 10 to 15 years inclusive	Facilities and transmission devices Dwellings cars and equipment Transport OS Production and household equipment Perennial plantings
7	more than 15 to 20 years inclusive	Building Facilities and transmission devices cars and equipment Transport OS Perennial plantings Fixed assets not included in previous categories
8	more than 20 to 25 years inclusive	Building Facilities and transmission devices cars and equipment Transport OS Production and household equipment
9	more than 25 to 30 years inclusive	Building Facilities and transmission devices cars and equipment Transport OS
10	more than 30 years	Building Facilities and transmission devices Dwellings cars and equipment Transport OS Perennial plantings

Although the very concept of “depreciation group” can be used for both tax and accounting purposes, the economic meaning of depreciation of fixed assets in both cases is different.

There is no direct mention of “depreciation groups” in regulations intended for accountants. The practical application of the OKOF classifier in accounting also assumes in 2014 the determination of the useful life in accordance with clause 20 of PBU 6/01 “Accounting for fixed assets,” which allows its independent determination by the enterprise. In addition, the methods of calculating depreciation, recognized by the two forms of accounting, also differ.

In accounting, an enterprise has a choice of four methods for calculating depreciation:

• linear;
• reducing balance;
• write-offs based on the sum of years of useful life;
• proportional write-off of cost by indicators.

Article 259 of the Tax Code of the Russian Federation provides only two ways to determine the amount of depreciation - linear and non-linear. This inevitably leads to discrepancies in accounting, increasing the risk of errors and complicating the work of the accounting department. Moreover, an incorrect interpretation of the provisions of the Tax Code and PBU can lead to a significant distortion of accounting and reporting data, which is fraught with sanctions for the organization from the inspection authorities.

In order to be able to avoid the occurrence of such a situation, accounting should use the classification of fixed assets included in the main depreciation groups, especially since clause 1 of the Government of the Russian Federation of January 1, 2002 No. 1 (as amended on December 10, 2010 No. 1011) “On the classification of fixed assets included in depreciation groups” directly indicates the possibility of its use in accounting.

This is how both accounts can be brought closer to each other with maximum compliance with the specifics of accounting procedures and data reliability.