Depreciation of fixed assets: Arranging accounting according to RAS (FSBU) 6/2020, a comparative analysis of calculation methods

Subject. This article considers the theoretical, methodological, practical, and organizational basics of accounting for depreciation of a fixed asset in light of the Russian Accounting Standard (FSBU) 6/2020 – Fixed Assets. Objectives. The article aims to analyze the provisions of the mentioned Russian Accounting Standard (FSBU) regarding the requirements for depreciating fixed assets, identify areas of concern in applying depreciation elements, and conduct a comparative analysis of fixed asset depreciation methods to make an informed choice that helps an economic entity manage financial performance and make reliable management decisions. Methods. For the study, we used analysis, comparison, generalization, and systematization. Results. Based on the analysis of the content of the Russian Accounting Standard (FSBU) 6/2020 – Fixed Assets regarding the requirements for accounting for depreciation of fixed assets and the necessary provisions for arranging depreciation accounting at an economic entity, the article highlights areas of concern in implementing depreciation elements, particularly the subjectivity in estimating residual value. The article presents the results of a comparative analysis of depreciation methods using practical examples, showing the advantages and pointing out the drawbacks of each particular method. It also points out a flaw in the method of calculating depreciation of fixed assets based on the proportional amount of production (volume of work in physical terms), which is established in clause 36 the RAS (FSBU) 6/2020 – Fixed Assets, and provides recommendations for fixing it. Conclusions and Relevance. With the introduction of the RAS (FSBU) 6/2020 – Fixed Assets, the approach to choosing depreciation elements has become stricter. An objective assessment of the liquidation value, the choice of depreciation method and correctly determining the useful life of a fixed asset is one of the most important decisions within an organization’s accounting policy. The presence of controversial points in the practical implementation of depreciation elements makes this process quite complicated and requires a careful approach. The conclusions and recommendations mentioned in the article can be useful both in theory and in the practice of financial accounting.