Depreciation

1. Straight-line method
   $R_{D} = \frac{100\%}{N}$ , R - rate of depreciation; N - number of years

2. Diminishing balance method
   $R_{D} = 1 - \sqrt[N]{\frac{\text{RV}}{\text{cost}}}$ , RV - residual value

3. Reducing balance method
   $R_{D} = \frac{100\%}{N} \times \text{CF}$ , CF - constant factor (1,5 or 2)

4. Sum of the year digits method
   $R_{D} = \frac{\text{YD}}{\text{SoY}}$ , YD - years digits in reverse order; SoY - sum of years digits

5. Service hours method
   $R_{D} = \frac{\text{AH}}{\text{TH}}$ , AH - actual hours worked; TH - total hours worked

6. Productive-output method
   $R_{D} = \frac{P}{\text{TP}}$ , P - production in period in units; TP - total unit output

Cost of acquisition

CoA = PP - VAT + duty + cost - D PP - purchase price; C - costs related to preparing asset for use; D - discounts

Impairment loss

If CA > RV CA - carrying amount; RV - recoverable value
then IL = CA - RV

CA = CoA - AD = BV AD - accumulated depreciation; BV - book value

RV → MAX(NSP; ViU) NSP - net selling price; ViU - value in use
NSP = SP - SC
$\text{ViU} = \sum_{N = 1}^{i}{\frac{\text{CF}}{{(1 + r)}^{N}} + \frac{\text{RV}}{{(1 + r)}^{N}}}$ R - discount rate

Employee's pay

health insurance = 9%(GP − NIC_{by employee})income tax = 18%(GP − NIC_{by employee} − personal reliefs amount)

Costs by kind

• depreciation

• amortization

• materials & energy consumption

• external services

• wages (payroll)

• social security & benefits

• taxes and charges

• other costs by kind

Costs by function

• costs of basic activity (materials and work)

• indirect costs of production (energy, etc.)

• costs of auxiliary activities (transportation)

• administrative costs (security, wages, energy at night)

• selling costs (advertisement, marketing, shop)

• accruals

• purchasing cost

Revaluation models of FTA/IFA

Cost model: BV = CoA - AD - IL
Revaluation model: BV = FV = MV FV - fair value; MV - market value