- How can a resource supplying organization obtain information about owners if the management company refuses to provide information?
- Does the management company have the right to charge apartment owners one-time charges for diagnostics of gas equipment?
- Is it possible to test a central heating system without a statement from the owners?
- Who can sign the protocol instead of the chairman of the management company? Is the signature of other owners sufficient?
- Is an individual entitled to a discount on utility bills after reaching 70 years of age? repair?
Question
How to prove the need to repair the roof of a building?
Answer
The need for current or overhaul roof is determined taking into account wear and tear structural elements, as well as the expiration of the effective service life of roofs. In case of controversial issues, a conclusion on the need to repair the roof, as well as other structural elements of the building, can be made by expert organizations or organizations with SRO approval.
Currently, the following regulations are in force in the Russian Federation in the field of regulation of current and major repairs:
Norms dated November 23, 1988 No. VSN 58-88 (r) (the body that approved the document or annex to the document is GOSSTROY USSR) “Regulations on the organization and implementation of reconstruction, repair and maintenance buildings, communal and socio-cultural facilities." These standards provide definitions for current and major repairs of a building, according to which:
Current repairs of a building - repairs of a building in order to restore the serviceability (operability) of its structures and systems engineering equipment, as well as maintaining operational performance.
Overhaul of a building - repair of a building with the aim of restoring its service life, replacing, if necessary, structural elements and systems of engineering equipment, as well as improving operational performance.
Routine repairs must be carried out at a frequency that ensures the effective operation of the building or facility from the moment of completion of its construction (major repairs) until the moment it is scheduled for the next major repairs (reconstruction). In this case, natural and climatic conditions must be taken into account, constructive solutions, technical condition and operating mode of the building or facility. The duration of their effective operation before the next routine repair is given in the recommended appendix. 3, and the composition of the main works for routine repairs is in the recommended appendix. 7.
Thus, the need to repair the roof can be justified by the expiration of the effective service life established in the appendix. 3. For example, the effective service life of a black steel roof covering is 10 years from the date of construction, accordingly, after this period it is necessary to carry out current repairs coverings.
A list of the main works for routine repairs of buildings and facilities has also been determined; a list of additional work performed during major repairs of buildings and facilities.
Determining the degree of wear of roofs and the need for its repair can also be determined from the Order of the State Civil Engineering of the USSR dated December 24, 1986 No. 446, VSN 53-86 (R).
Explanations about current and major repairs are also given in the methodological documentation of the USSR State Construction Committee dated December 29, 1973 No. 13-14.2000, 279 “MDS 13-14.2000 Regulations on carrying out scheduled preventative repairs of industrial buildings and structures.”
The rationale for this position is given below in the materials of the “Lawyer System”
STANDARDS OF 11.23.1988 No. VSN 58-88 (R) (BODY THAT APPROVED THE DOCUMENT OR ANNEX TO THE DOCUMENT - GOSSTROY OF THE USSR)
"4. Current repairs of buildings and facilities
4.1. Routine repairs must be carried out at a frequency that ensures the effective operation of the building or facility from the moment of completion of its construction (major repairs) until the moment it is scheduled for the next major repairs (reconstruction). In this case, natural and climatic conditions, design solutions, technical condition and operating mode of the building or facility must be taken into account. The duration of their effective operation before the next routine repair is given in the recommended appendix. 3, and the composition of the main works for routine repairs is in the recommended appendix. 7.*
4.2. Current repairs must be carried out according to five-year (with tasks distributed by year) and annual plans.
Annual plans (with the distribution of tasks by quarter) should be drawn up to clarify the five-year plans, taking into account the results of inspections, developed cost estimates and technical documentation for current repairs, measures to prepare buildings and facilities for operation in seasonal conditions.
4.3. Acceptance of completed current repairs of residential buildings should be carried out by a commission consisting of representatives of housing maintenance, repair and construction (when performing work by contract) organizations, as well as a house committee (the board of housing cooperatives, the housing management body of the organization or enterprises of ministries and departments).
Acceptance of completed current repairs of a utility or socio-cultural facility must be carried out by a commission consisting of a representative of the operational service, a repair and construction (when performing work by contract) organization and a representative of the relevant higher management body.
The procedure for the acceptance of residential buildings after current repairs should be established by the Ministry of Housing and Communal Services (Ministries of Economic Affairs) of the union republics, and of municipal and socio-cultural facilities - by the relevant sectoral management bodies.
4.4. When carrying out routine repairs of buildings by contract, the principles of pricing and the procedure for payment for work performed, provided for major repairs, should be applied.
4.5. Current repairs of residential and utility rooms apartments must be carried out by the tenants of these premises at their own expense on the terms and in the manner determined by the legislation of the Union republics. The list of apartment renovation works carried out by tenants at their own expense is given in the recommended appendix. 8. These works must be carried out at the expense of the operating organization if they are caused by a malfunction of building elements (roof, engineering systems etc.), maintenance and repair of which are within its responsibilities."
Professional help system for lawyers, in which you will find the answer to any, even the most complex question.
Correct qualification of various types of work to restore fixed assets: current and major repairs, on the one hand, and reconstruction, modernization, retrofitting, on the other, is a necessary condition for high-quality financial planning in an institution. Ultimately, the acceptance and fulfillment of budget obligations, the reflection of transactions in budget accounting and reporting, and the calculation of taxes depend on this.
It is no secret that in cases of all types of repairs, costs are written off against the current expenses of the institution, and when carrying out reconstruction, modernization and additional equipment, they are attributed to the increase in the initial cost of fixed assets. However, it is often very difficult to distinguish between these concepts in practice. Let's consider the main approaches to determining the listed types of work.
Terminology
- modernization -
- retrofitting -
- troubleshooting;
- finishing work.
Table 1
Functional purpose of the fixed asset
Object | Basic functions |
| Building | |
| Fence | |
| highway | |
| Automobile | |
| Computer | 2. Store information. |
Repair
Traditionally differ different levels average
The term "reconstruction"
The term "modernization"
The term "retrofitting"
Work planning
Defining the Goal
APPLICATION FOR REPAIR, RECONSTRUCTION, MODERNIZATION, ADDITIONAL EQUIPMENT
Object name | Inventory number | Cause | Planned events | Planned result |
|
| 333222333 | |||||
| Car VAZ-21114 | 555666555 | Do-it-yourself repairs | Restoring functionality | ||
| Automated workplace(computer included) | 555666777 | ||||
| House of Culture building | 777888999 | The roof is leaking | Replace soft roof | ||
| House of Culture building | 777888999 | Improved performance | |||
and finishing works,
Table 2
Reflection in budget accounting of repair, reconstruction, modernization, and retrofitting work
| No. | Contents of the operation | accounting entry 1 | |
| debit of the budget accounting account | |||
| 1 | 2 | 3 | 4 |
KRB 0 401 01 225 | KRB 0 302 08 730 |
||
KRB 0 401 01 226 | KRB 0 302 09 730 |
||
KRB 0 105 00 340 | KRB 0 302 22 730 |
||
| KRB 1 401 01 272 KRB 2 401 01 272 KRB 2 106 04 340 | KRB 0 105 00 440 |
|
KRB 0 106 01 310 | KRB 0 302 19 730 |
||
KRB 0 106 01 310 | KRB 0 302 09 730 |
||
KRB 0 105 00 340 | KRB 0 302 22 730 |
||
KRB 0 106 01 310 | KRB 0 105 00 440 |
||
KRB 0 101 00 310 | KRB 0 106 01 410 |
||
Correct qualification of various types of work to restore fixed assets: current and major repairs, on the one hand, and reconstruction, modernization, retrofitting, on the other, is a necessary condition for high-quality financial planning in an institution. Ultimately, the acceptance and fulfillment of budget obligations, the reflection of transactions in budget accounting and reporting, and the calculation of taxes depend on this. It is no secret that in cases of all types of repairs, costs are written off against the current expenses of the institution, and when carrying out reconstruction, modernization and additional equipment, they are attributed to the increase in the initial cost of fixed assets. However, it is often very difficult to distinguish between these concepts in practice. Let's consider the main approaches to determining the listed types of work.
Terminology
Many regulatory legal acts begin with definitions of concepts and terms used in the document. So, for example, Art. 6 BC RF, Art. 8 and 11 of the Tax Code of the Russian Federation, Art. 15 and 20 of the Labor Code of the Russian Federation. In cases where there is no clear and unambiguous definition for key terms, the application of legal norms in practice raises a lot of questions and controversial situations.
This was the case until recently with regard to the issue of delimitation by budgetary institutions of repair, reconstruction, modernization, and additional equipment. Until 2009, neither the Budget Accounting Instructions, nor the legislation on accounting in general, nor the legislation on budget classification contained these concepts.
In 2009, the Russian Ministry of Finance developed methodological recommendations for budgetary institutions on the application of KOSGU (system letter of the Russian Ministry of Finance dated July 21, 2009 No. 02-05-10/2931), which contained, in particular, clear definitions of the terms “reconstruction”, “modernization” ", "retrofitting" in order to correctly attribute expenses to articles (subarticles) of KOSGU. The same letter contained the distinctive characteristics repair work.
The system letter on the procedure for applying KOSGU in 2010 (letter of the Ministry of Finance of Russia dated 02/05/2010 No. 02-05-10/383) provides similar definitions of operations that increase the value of a fixed asset:
- reconstruction is a change in the parameters of objects capital construction, their parts (height, number of floors, area, production capacity indicators, volume) and the quality of engineering support. This definition completely coincides with that given in paragraph 14 of Art. 1 of the Town Planning Code of the Russian Federation;
- modernization - a set of works to improve a fixed asset object, leading to an increase in the technical level and economic characteristics of the object, carried out by replacing its structural elements and systems with more efficient ones;
- retrofitting - addition of fixed assets with new parts, details and other mechanisms that will form a single whole with this equipment, will give it new additional features or change performance indicators, and their separate use will be impossible.
- troubleshooting;
- maintaining technical, economic and operational indicators at the initially envisaged level;
- carrying out minor redevelopment of premises;
- finishing works.
Further, when considering the principles that allow us to draw the line between different types of work, the concept of “functional purpose of a fixed asset” will be repeatedly used. Before qualifying the type of work, it is necessary to clearly formulate what the fixed asset is intended for, and then determine how the performance of these functions will change as a result of the work. At first glance, it seems that giving such a definition is not difficult (see Table 1).
Table 1
Functional purpose of the fixed asset
Object | Basic functions |
| Building | 1. Provide protection from weather conditions. 2. Ensure the safety of property. 3. Provide conditions for people’s activities. 4. Provide conditions for equipment operation. |
| Fence | 1. Mark the boundaries of the site. 2. Restrict access to the site. |
| highway | 1. Ensure the movement of cars. 2. Ensure safety when moving cars. 3. Provide comfort when moving cars. |
| Automobile | 1. Ensure the movement of people and goods. 2. Ensure safety when moving people and goods. 3. Ensure protection of people and cargo from atmospheric conditions. 4. Ensure the safety of property in the car. |
| Computer | 1. Process information - transform information of one type into another. 2. Store information. |
The following sections will show how to define functional purpose fixed asset becomes the key to differentiate different types works
Repair
The concept of “repair” includes not only troubleshooting, but also maintaining the operational performance of the facility. In other words, repair work is aimed at restoring the facility’s full performance of its functions.
Even if the repair results in an improvement in the characteristics of the object, its value does not increase. This situation is especially relevant in relation to computer equipment, the generations of which change very quickly.
Traditionally differ different levels repairs: current, average and capital. At the same time, there is no clear distinction between these concepts in the legislation. For example, in the Town Planning Code of the Russian Federation the term “major repairs” appears repeatedly, but its definition is not given. Since, from the point of view of the application of budget classification and the procedure for maintaining budget accounting, there are no differences between current and major repairs, the accountant does not need to distinguish between such expenses.
It is necessary to take into account the fact that in practice construction organizations capital repairs often mean a set of works to improve capital construction projects, which does not correspond to the terminology defined by budget legislation.
As a separate type repairs can be distinguished by finishing work. There is no definition of this term in the system letters of the Russian Ministry of Finance, but its meaning can be understood from the given list of works. Finishing work refers to work that is not associated with the restoration of the object, but also does not lead to an improvement in its basic characteristics, for example, painting it in a different color.
Basically, the term “finishing work” is applied to capital construction projects, but by analogy it can also be applied to vehicles (a car can also be painted a different color without the purpose of restoration) and to any other property when the work concerns only changes appearance object.
Determining the functional purpose of the fixed asset will help differentiate between finishing work and work leading to the improvement of a fixed asset. If the work does not affect the quality of performance of basic functions and does not add new features, then such work can be classified as finishing.
Reconstruction, modernization, retrofitting
The term "reconstruction" applies exclusively to capital construction projects. Therefore, it is impossible to reconstruct a car or a personal computer. Only a building or structure can be reconstructed. Reconstruction involves changing the parameters of an object. Reconstruction also includes improving the quality of engineering and technical support, but the content of these works is regulatory documents not explained.
The term "modernization" involves replacing components, and these components must be in good working order. If a faulty unit is replaced, then such work is not a modernization, but a repair. If no components are replaced, then such work is considered additional equipment.
Thus, to correctly use the term “upgrade”, it is necessary to clearly understand what it means to replace a serviceable part: the part must be serviceable before replacement, but does not necessarily have to remain so after dismantling.
The term "retrofitting" involves an inherent improvement of an item of fixed assets. It follows from this that new parts added to an object must, firstly, be difficult to separate, and secondly, give the object new properties.
Work planning
An important task at the work planning stage is setting goals and determining the scope of work.
Defining the Goal
In order to correctly determine which category of work, repair or reconstruction (modernization, retrofitting), the operation that the institution plans to perform belongs to, first of all, you need to determine the purpose.
If the initial purpose of the work is to restore operability or technical characteristics, or external changes, which do not affect the quality of the object’s performance of its functions, which means that repairs are being made.
If the purpose of the work is to improve the basic characteristics of a serviceable object or adding new features, This means that they can be classified as reconstruction, modernization or retrofitting. In this case, you next need to decide on the choice of one of three types of operations. If the operation involves replacing components or parts, then this is modernization (or reconstruction). If the operation involves adding units and parts, then this is retrofitting (or completion).
Justification of the need for expenses for carrying out work
To eliminate unnecessary questions about the feasibility of carrying out repairs and other work when carrying out control and audit activities, as well as to streamline all operations with property, including the restoration of fixed assets, it is recommended that the institution establish the following procedure at the level of accounting policy:
- Appoint by a separate order (instruction), without including in the text of the accounting policy itself, persons responsible for the operation of various types of property under operational management, use, lease, etc. Moreover, such persons do not necessarily have to be financially responsible. For example, the person in whose use it is located may be financially responsible for the computer, and a specially appointed qualified employee may be responsible for the operation of all computers in the institution.
- Make it incumbent upon persons responsible for the operation of property to monitor their technical condition, as well as to draw up requests for repairs, reconstruction, modernization, and additional equipment. Determine that the specified work is not performed without a corresponding application approved by the manager.
- Set up an application form. A sample of filling out the tabular part of the application is given below (the header must contain the details of the institution, date and number, signature of the manager, and the basement - the signature of the person responsible for the operation of the property).
Object name | Inventory number | Cause | Planned events | Planned result |
|
| Automated workstation (computer included) | 333222333 | The image on the monitor is unclear, “floats”, and cannot be corrected by adjustments | Diagnostics and repair, if necessary, by means of a third party | Restoring functionality | |
| Car VAZ-21114 | 555666555 | Knock in the front suspension - silent blocks have collapsed | Do-it-yourself repairs | Restoring functionality | |
| Automated workstation (computer included) | 555666777 | System resources - the amount of RAM - are not sufficient to use the "AAA" program | Upgrading with additional RAM | Ability to use the AAA program | |
| House of Culture building | 777888999 | The roof is leaking | Replace soft roof | Recovery performance characteristics | |
| House of Culture building | 777888999 | Rain and melt water flowing from the roof flood the porch, the steps become covered with ice and collapse, causing injury. | Add a canopy over the porch | Improved performance | |
The person responsible for the operation of the property must submit applications regardless of whether funds are available to carry out the proposed activities. The introduction into practice of an institution of such a procedure for planning repairs and other work will solve not only the problems of justifying expenses during control and audit activities, but will also systematize all the activities of the institution in maintaining and servicing property. Also, when developing accounting policies, it is advisable to make decisions regarding replacement applications. consumables(toner, cartridges) and routine maintenance.
At the planning stage of reconstruction, modernization, and additional equipment, it is necessary to take into account the requirements of Art. 34 of the Budget Code of the Russian Federation, which establishes the principle of effectiveness and efficiency in the use of budget funds. And local governments receiving interbudgetary transfers (with the exception of subventions) should also take into account the requirements of Art. 136 BC RF. In other words, you must be prepared to justify the feasibility of the improvements made to the property and finishing works, and also that the ongoing improvements are aimed specifically at improving the quality of the institution’s core activities. For example, which institution could indicate the reason when drawing up an application for work on installing a car radio in a car (if it was not included in the factory supply)?
Features of concluding contracts for work performance
When planning repair and other work, carrying out cash expenses, as well as during control and audit activities, various conflict situations often arise. Many of these situations can be avoided if you are guided by a simple principle: the KOSGU article to which expenses under the contract will be allocated is determined by what is the result of the execution of the contract.
This principle implies that the KOSGU article is determined depending on what has changed in the institution itself as a result of the implementation of the contract. This principle is very simple, but, unfortunately, in practice there are situations of deep misunderstanding of it. Typical mistakes are:
- error No. 1 - defining the KOSGU article depending on what happened to the performer;
- error No. 2 - defining the KOSGU article depending on what happens at the institution later.
If you need to select various types works within the framework of one contract, then this should be done in the “Subject of the contract” section, clearly indicating two (or more) types of work, as well as in the “Contract amount” section, indicating the cost of the relevant types of work. Consequently, the contractor will report for the work performed using different documents: one report for repair work and another for improvement work.
The same situations may arise during large-scale reconstruction of buildings or restoration of monuments. When analyzing specific cases, some part of the entire complex of reconstruction work can be qualified as repair and restoration work, will be partially paid for by subsection 225 of KOSGU and will not lead to an increase in the cost of the building by the entire amount of work performed under the contract. And during the restoration of a monument, a significant improvement may also be made, requiring the application of Article 310 of KOSGU to some part of the contract amount and leading to an increase in the cost of the monument.
Reflection in budget accounting of repair, reconstruction, modernization, and retrofitting work
Table 2
Reflection in budget accounting of repair, reconstruction, modernization, and retrofitting work
| No. | Contents of the operation | accounting entry 3 | |
| debit of the budget accounting account | budget account credit | ||
| 1 | 2 | 3 | 4 |
| Acceptance of the cost of the contractor's services (work) for repair or restoration of operability or finishing work (including the cost of the contractor's own materials). | KRB 0 401 01 225 | KRB 0 302 08 730 |
|
| Acceptance of the cost of services (work) for the development of design documentation for repair work. | KRB 0 401 01 226 | KRB 0 302 09 730 |
|
| Purchasing materials for repair work as part of a separate transaction. | KRB 0 105 00 340 | KRB 0 302 22 730 |
|
Write-off of own materials used for repair work.
| KRB 1 401 01 272 KRB 2 401 01 272 KRB 2 106 04 340 | KRB 0 105 00 440 |
|
| Acceptance of the cost of the contractor's services (work) for reconstruction, modernization, and additional equipment (including the cost of the contractor's own materials). | KRB 0 106 01 310 | KRB 0 302 19 730 |
|
| Acceptance of the cost of services (work) for the development of design documentation for reconstruction, modernization, and additional equipment. | KRB 0 106 01 310 | KRB 0 302 09 730 |
|
| Purchasing, as part of a separate transaction, materials for carrying out reconstruction, modernization, and retrofitting work. | KRB 0 105 00 340 | KRB 0 302 22 730 |
|
| Write-off of own materials used for reconstruction, modernization, and additional equipment. | KRB 0 106 01 310 | KRB 0 105 00 440 |
|
| An increase in the value of a fixed asset as a result of reconstruction, modernization, or additional equipment. | KRB 0 101 00 310 | KRB 0 106 01 410 |
|
2 In categories 18, 22, 23 of the budget accounting account number, the corresponding codes of the type of activity and analytical account are indicated.
3 The application is drawn up separately for each fixed asset item. The table provides examples of filling out applications for different types of work.
4 In categories 18, 22, 23 of the budget accounting account number, the corresponding codes of the type of activity and analytical account are indicated.
How to write justifications for major repairs of a school building, plans, estimates?
Answer
The justification for carrying out a major overhaul of the school building is the results of a technical inspection. It determines the degree of its physical and moral wear and tear, the need for repair and reconstruction work.
To conduct such a survey, it is necessary to involve a specialized organization under a civil contract for the performance of work.
<…>In accordance with clause 5.8 of the Regulations on the organization and conduct of reconstruction, repair and maintenance of residential buildings, communal and socio-cultural facilities (VSN 58-88 (r)), approved. By order of the State Committee for Architecture of November 23, 1988, the development of design and estimate documentation for major repairs and reconstruction of buildings (facilities) should include:
- carrying out a technical inspection, determining the physical and moral wear and tear of design objects;
- drawing up design estimates for all design decisions for redevelopment, functional reassignment of premises, replacement of structures, engineering systems or their re-installation, landscaping and other similar work;
- feasibility study and;
- development of a project for organizing major repairs and reconstruction and a project for the execution of work, which is developed by the contractor.<…>
The preparation of the listed documents requires engineering and survey work, and, accordingly, the required level of qualifications. Such a survey is carried out by a specialized organization under an agreement with an educational organization.
Consequently, establishing the need for a major overhaul of a school building is established based on the results of a technical inspection, determining the degree of physical and moral deterioration of the building. A contract for a technical inspection may also provide for the preparation of design estimates, a feasibility study and a work plan.
A technical inspection of the physical condition of a building can be carried out in accordance with GOST 31937-2011 "Buildings and structures. Rules for inspection and monitoring technical condition", put into effect by Order of Rosstandart dated December 27, 2012 No. 1984-st.
As practice shows, it can be quite difficult to determine the line between repair and reconstruction. Our colleagues from the journal “Accounting in Construction” have prepared an overview of the latest explanations from officials and arbitration practice on this issue. The article’s recommendations will help you make the right decision on cost accounting and eliminate unnecessary disputes with tax authorities.
During audits, tax authorities show increased interest in the organization’s expenses associated with repair work. Special attention to such expenses is explained as follows: according to paragraph 1 of Article 260 of the Tax Code of the Russian Federation, costs for current or major repairs at a time in full are taken into account in expenses when calculating income tax.
In turn, reconstruction costs increase the cost of the fixed asset and are written off as expenses through depreciation (clause 2 of Article 257 of the Tax Code of the Russian Federation). Thus, correct qualification of work will avoid problems with taking into account these expenses for profit tax purposes.
What definitions to use
In accordance with paragraph 1 of Article 11 of the Tax Code of the Russian Federation, institutions, concepts and terms of civil, family and other branches of legislation Russian Federation, used in the code, are used in the meaning in which they are used in these branches of legislation, unless otherwise provided by the Tax Code of the Russian Federation.
The concept of reconstruction is defined by the code
Therefore, when qualifying work for tax purposes, organizations must be guided by the definition given in the Tax Code of the Russian Federation. Moreover, even in the case when the Town Planning Code of the Russian Federation (Article 1) provides a more precise definition, for example, in relation to the reconstruction of linear objects. This is precisely the position taken by officials of the Russian Ministry of Finance (see letter dated February 15, 2012 No. 03-03-06/1/87).
In accordance with paragraph 2 of Article 257 of the Tax Code of the Russian Federation, reconstruction includes the reconstruction of existing fixed assets, associated with the improvement of production and increasing its technical and economic indicators and carried out under the project for the reconstruction of fixed assets in order to increase production capacity, improve quality and change the range of products.
Thus, the purpose of reconstruction is to improve (increase) the initially adopted standard indicators of the functioning of a fixed asset object, for example, increasing the life beneficial use, power, etc.
This conclusion is confirmed by the decisions of arbitration courts. Thus, in the decision of the Eleventh Arbitration Court of Appeal dated July 8, 2010 in case No. A65-33483/2009, it was noted that a complex of construction and installation work was carried out on the property, as a result of which its main technical indicators changed, the premises were redesigned and the their quantity, the quality of the engineering and technical support of the property has changed, the energy load on the premises has increased from 1.5 kVA to 2 kVA, the purpose of the property has changed.
As a result, the arbitrators stated that the case materials proved the fact of reconstruction of the building.
In addition, in the decision of the Thirteenth Arbitration Court of Appeal dated September 14, 2011 in case No. A56-1315/2011, the judges noted that, in accordance with the requirements of Article 257 of the Tax Code of the Russian Federation, the qualification of work performed as reconstruction for the purpose of calculating income tax may be carried out only if there is a reconstruction project.
What work is classified as repair work?
The concept of “repair” is absent in the current tax and accounting legislation. At the same time, definitions of capital repairs have recently appeared in the Town Planning Code of the Russian Federation. Amendments to Article 1 of the Town Planning Code of the Russian Federation were introduced by Federal Law No. 215-FZ of July 18, 2011. In particular, capital repairs of facilities include:
Replacement and (or) restoration building structures capital construction projects or elements of such structures (with the exception of load-bearing building structures);
Replacement and (or) restoration of systems (networks) of engineering and technical support for real estate objects or their elements;
Replacement of individual elements of load-bearing building structures with similar or other elements that improve the performance of such structures and (or) restoration of these elements.
In addition, the definition of major repairs of linear facilities is provided separately.
This is a change in the parameters of linear objects or their sections (parts), which does not entail a change in the class, category and (or) initially established indicators of the functioning of such real estate objects and which does not require changing the boundaries of right of way and (or) security zones of these objects.
Accounting for reconstruction costs
When carrying out reconstruction, the taxpayer must provide accumulative accounting of cost data in the context of all elements of expenses (materials, labor costs, accruals for the entire period of work). wages, services of third parties, etc.). Upon completion of the reconstruction work, the initial cost of the reconstructed object is assessed, taking into account the costs of reconstruction, including the costs of paying for the services of third-party organizations. Consequently, reconstruction costs until the property is put into operation are qualified as forming the initial cost of depreciable property - fixed assets.
These costs, after receiving permission for commissioning, are included in expenses by calculating depreciation over the useful life of the property.
Thus, expenses for the construction of a real estate facility are taken into account for profit tax purposes from the 1st day of the month following the month in which this facility was put into operation, but not earlier than the 1st day of the month following the month in which the documentary confirmation of the fact of filing documents for state registration of rights to the object (letter of the Ministry of Finance of Russia dated February 14, 2011 No. 03-03-06/1/96).
Justification of repair costs
In order to avoid claims from the tax inspectorate when carrying out repairs, it is necessary to have documents justifying the repair and confirming the costs of its implementation.
Such documents include: a defective statement, an order from the head of the organization to carry out repairs, a contract for repair work (if the repair is carried out by the company independently, repair plans (schedules), repair cost estimates, invoices for the internal movement of fixed assets and for the release of materials are required for repairs, pay slips for payment of wages to workers carrying out repairs), act of acceptance and delivery of repaired objects, technical specifications objects after renovation, expert opinions.
This approach is shared by judges. For example, in the decision of the Fourteenth Arbitration Court of Appeal dated February 24, 2011 in case No. A05-5601/2010, the documents confirming the need for major repairs, and therefore the justification of expenses, included a repair plan and defective statements.
The arbitrators qualified the work as repair and construction work, since as a result of their implementation the technical and economic indicators of the facility did not increase; the need for work was caused by the wear and tear of the building structures and equipment, which required restoration or replacement in accordance with the established deadlines for major repairs to continue further operation of the facility. At the same time, obsolescence of existing equipment was eliminated.
The judges of the Thirteenth Arbitration Court of Appeal (ruling of September 14, 2011 in case No. A56-1315/2011) analyzed the submitted contracts, defective statements, certificates of work performed and invoices, as well as expert opinions obtained both during an on-site tax audit, and when considering the case in the court of first instance, and decided that in the case under consideration the building was repaired.
At the same time, the case materials established that the technical and economic indicators of the facility have not changed and, therefore, the work carried out by the organization belongs to the category of repairs, and their cost is rightfully included in the costs associated with maintaining the fixed asset in working condition. Based on court decisions, it is possible to conclude that repair work includes those types of work that do not lead to an improvement in the characteristics of the fixed asset. Moreover, during repairs, you can use new, more durable and economical spare parts and materials (parts) instead of worn-out ones.
1.1 Technical condition monitoring (technical diagnostics)
The practice of operating underwater crossings (SC) of main pipelines (MP) has shown that in order to prevent serious accidents and timely implementation of scheduled preventive maintenance, periodic inspection of their technical condition is necessary.
Monitoring of the technical condition (technical diagnostics) of the underwater crossing is carried out by special targeted checks, surveys and measurements using technical diagnostic tools (TD) during operation and repair, as well as after the standard service life.
Monitoring of the technical condition of underwater crossings of main oil product pipelines (MPPP) is carried out by the operating organization with the involvement (if necessary) of specialized organizations in accordance with maintenance and repair schedules.
The use of various non-destructive testing methods, technologies and technical diagnostic tools is one of the effective and promising ways to increase the reliability of main pipelines and especially underwater crossings of the Moscow Oil and Gas Processing Plant. The widespread introduction of diagnostics contributes to the early detection of defects, their timely elimination, and the reduction of labor costs and time required to carry out repair work.
When choosing one or another inspection technology, non-destructive testing method and technical diagnostic tools, it is necessary to conduct a technical and economic analysis and determine the technical and economic efficiency of their use.
Technical and economic analysis and determination of technical and economic efficiency allow:
justify the most rational directions and order of use of certain STD;
choose the most economical options examination of the MT PP and its operating modes;
define optimal options and rational use of STD;
establish the social effect of the introduction of STD.
The use of certain technical diagnostic tools should be based on taking into account the beneficial results of using STD and the costs of it. A measure of the useful result can be taken as an increase in the reliability of the MT software, due to the elimination of identified defects. The costs of using STD should take into account not only the cost of the control itself and related operations, but also the losses associated with possible rejection.
The main task of technical diagnostics of PP is to determine the quantitative and qualitative relationships between the factors causing the formation and development of defects and the actual values of the characteristics of defects.
Special targeted inspections of the PP should be carried out by external inspection (walk-through, fly-by, diving and instrument), as well as using in-pipe technical diagnostic tools.
The frequency of inspection of the crossing point is established by the management of the organization operating the crossing.
The controlled parameters when inspecting PP using in-line technical diagnostic tools (in-line inspection tools) are:
actual planned and altitude positions of the PP;
density (presence) of soil around the PP pipe;
diameter (geometry) of the pipe (geometry defects - corrugations, dents, ovality);
pipe wall thickness (pitting and continuous corrosion, cracks, delaminations and other defects).
The result of monitoring the technical condition of the PP should be an assessment of the actual condition and drawing up a schedule of planned preventive maintenance (PPR) to maintain the PP at the design level during operation through timely implementation of maintenance and repair. Work to monitor the technical condition of the main line of the PP using in-line inspection tools (IIS) is carried out in conjunction with an inspection of the linear part of the MNPP section, which includes the PP. Work to monitor the technical condition of the reserve line(s) of PPs is carried out separately if the backup line has chambers for starting and receiving cleaning and diagnostic devices.
Controlled parameters, methods and methods of control, frequency of work, results of inspection of the PP are determined in accordance with)