Factory and office equipment
Factory and office equipment ( BGA or BuGA for short ) is the term used in accounting for items in property , plant and equipment that are not used directly in production , but rather serve the long-term readiness for production in the predominantly administrative area.
In terms of the balance sheet, it is a catch-all item that includes all movable property, plant and equipment that is not to be capitalized under “ Land and buildings ”, as “ Technical equipment and machinery ” or as “ Advance payments and assets under construction” . According to (2) (A II No. 3) of the German Commercial Code ( HGB ), this is to be posted in the balance sheet item “Other equipment, factory and office equipment” because it cannot be allocated to the other fixed assets items .
- Company equipment : office machines , fleet , tools , tools , workshop equipment , laboratory facilities , canteens ;
- Business equipment: Equipment for shops and business premises , office furniture , office supplies , EDP systems, EDP hardware , telecommunications systems , shop window systems .
It is assumed that they are considered to be an independent movable property . However, if they are to be regarded as an essential component or accessory of a property, building or technical system in terms of their use and functional context or their intended purpose , they must each be assigned to one of these balance sheet items. The decisive factor is that it can be independently assessed, which is determined by the strength of a possible connection, the period of time of a connection and its external appearance.
For items of office furniture and equipment the acquirer has companies in the evaluation of balance sheet date fair values to be set, subject to the specific typically often because of their low value depreciation rules. Their useful life is between 2 and 10 years. In the commercial balance sheet , according to Paragraph 3 of the German Commercial Code, the acquisition or production costs of depreciable assets are to be reduced by depreciation. In the opinion of the IDW, there is basically nothing to prevent the formation of a collective item for the annual financial statements under commercial law . The associated breach of the principle of individual valuation in accordance with (2) of the German Commercial Code is acceptable from an economic point of view. However, it should be taken into account that the dissolution of the collective item regulated in the EStG could lead to an overvaluation. On the one hand, this results from the fact that early departures cannot be taken into account. On the other hand, the 5-year depreciation period should tend to be too long; the assets to be recorded in the compound item would often have a useful life of less than 5 years. A transfer of the collective item in the trade balance is therefore only possible if this item is of subordinate importance overall. In such cases, according to the IDW, immediate depreciation or an immediate offsetting of the acquisition or production costs recorded in the collective item would not be objectionable.
In the tax balance sheet , items of operating and office equipment with a purchase price of a maximum of 150 euros (excluding sales tax ) must be booked as an expense when they are purchased , so that they are not depreciated at the end of the year ( (2) sentence 1 EStG ). If their value is between 250 and 1000 euros, they are to be depreciated annually as a collective item at 20% of their acquisition value (Section 6 (2a) EstG). Low-value assets up to a purchase price of a maximum of EUR 800 each (excluding sales tax, from 2018) can be written off in full in the year of their purchase.
- Adolf G. Coenenberg , Axel Haller, Gerhard Mattner, Wolfgang Schultze: Introduction to accounting: Fundamentals of bookkeeping and accounting , 8th edition. Schäffer-Poeschel Verlag, Stuttgart 2010, ISBN 978-3791028088
- Harald Wedell, Achim A. Dilling: Fundamentals of accounting: bookkeeping and annual accounts. Cost and performance accounting , 13th edition, NWB-Verlag 2010, ISBN 978-3482547836
- Joachim S. Tanski, Annual Financial Statements in Practice , 2011, p. 131
- Klaus Bertram (ed.), HGB commentary Haufe , 2009, p. 490
- IDW-Fachnachrichten No. 10/2007, p. 506