Writing-off the depreciation is called of enterprise abilities (fixed assets and circulating capital). The depreciation can be compelled by general reasons such as aging and wear or by special reasons like an accident damage or a price purge. The writing-off is usually determined from economical view and - considering according to commercial law characteristics - when cost in the profit accounting considers. The opposite of the writing-off is the writing up, which is applicable as Wertaufholung, if in previous years to high writings-off were made.

General information

Writings-off are made, in order to be able to see on the one hand always the current value of the operating ability from record keeping, on the other hand, in order to be able to include the depreciation by wear or aging of tangible assets as costs into the price calculation. Finally the writings-off reduce the profit which can be paid duty as operating expenditure and affect the estimated value of fortune articles in the commercial balance sheet. There these fortune articles may be set at the most with the initial costs or the manufacturing costs, decreased by the depreciation between the evaluation deadlines (= writings-off).

Writings-off on the circulating capital

For thes subject of the circulating capital only fractional depreciations are permissible, since the value of the circulating capital does not reduce itself by time run or use and so no regular value loss is present.

Writings-off on the fixed assets

With articles of the fixed assets, which are to be used during a longer period in the enterprise, the acquisition or manufacturing costs is booked not in the year of the acquisition/the production completely as expenditure, but distributed proportionately by regular writings-off about the years of the use. These writings-off are to express the annual Werteverzehr.

Beginning of the writings-off

The writings-off are made for the first time with the beginning of the use for operational purposes. This is with an acquisition usually the day of the purchase or the supply. With immovable things (buildings) and extensive trades (work contract) the writing-off is to be begun with the day of the delivery or acceptance.

End of the writings-off

Writings-off are to make up to separating the restaurant property from the enterprise by sales, loss or scrapping. The regular writing-off leads regularly to the fact that tangible assets are reduced in the last use year to a book value of 0 "€. If the economic goods are continued to use however after its total depreciation in the enterprise, it is to be led with a reminder value (1.00 "€) further in the books. Economically meaningfully also the computation of a possible can be, which is to be obtained after a sales at expiration of the service life. This utilization proceeds would reduce the calculatory depreciation and thus the writing-off volume. The beginning of presumed utilization proceeds is however only economically permissible, because due to the according to commercial law caution principle the restaurant property is to be copied always completely, because so far not realized profits (proceeds from final utilization) may not be proven first.

Writing-off causes

The causes for the value loss can be general and special kind. Are applicable

consumption-caused causes: Wear by use or dismantling

temporally caused causes: Wear and wear

economically caused causes: Depreciation due to the technical progress or because of demand shifts

legally caused causes: Expiration of patent rights or rights to use before expiration of the technical service life of the economic goods

The causes mentioned for the value loss lead to regular writings-off, which are distributed over the service life. Besides however still special reasons for a depreciation can to be been present as for example an accident damage or a depreciation due to a disaster, which justifies an unscheduled writing-off on the lower fractional value.

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