Imputed depreciation

The imputed depreciation is accounting a part of the calculated costs , which the actual depreciation of tangible assets independent of commercial law and tax law set limits based.

General

There are types of costs in the company that do not appear as expenses ( pagatorial costs ) in the profit and loss account , but still have to be taken into account when calculating the costs . These fees or other charges are used in the internal company pricing, so that the cost of the cost carrier strain with the effective values of consumption. These imputed costs include, in detail, depreciation , interest , rent , entrepreneur wages and risks .

Depreciation

In the case of depreciation, in particular, the different accounting objectives between the commercial balance sheet and tax balance sheet on the one hand and internal cost accounting on the other hand are expressed. While the accounting depreciation of acquisition or production costs is carried out, the imputed depreciation is calculated from the replacement value for the purpose of real asset preservation. In the case of balance sheet depreciation, the arithmetical distribution of the expenditure over the useful life is in the foreground, in the case of imputed depreciation, however, the causal distribution is important. The sum of the individual depreciation will therefore exceed the historical acquisition costs with increasing replacement prices. The creation of hidden reserves is desired, or at least tolerated , by commercial law to protect creditors . In contrast to this, one wants to record the actual consumption as precisely as possible with imputed depreciation.

If the balance sheet depreciation is covered by the sales , one arrives at the nominal maintenance of the substance, i.e. the recovery of the historical acquisition or production costs. However, if the replacement value of mechanical equipment increases, then this earned depreciation is insufficient for the new acquisition. There is then no real maintenance of substance. Therefore, instead of the historical acquisition costs, the increasing replacement value is chosen as the basis for the imputed depreciation.

In financial accounting, depreciation is often carried out according to the declining balance method , but linear in cost accounting . Reasons are a more causal burden on the cost bearer over the entire useful life. Depreciation is therefore a different cost, since a depreciation expense is already booked in the income statement - albeit at a different amount.

calculation

${\displaystyle {\text{Kalkulatorischer Abschreibungsbetrag}}={\frac {{\text{Wiederbeschaffungswert}}-{\text{Schrottwert}}}{\text{tatsächliche Nutzungsdauer}}}}$

${\displaystyle {\text{Wiederbeschaffungswert}}={\text{Anschaffungskosten}}\cdot (1+{\text{Inflationsrate}})^{n}}$

Determining factors of imputed depreciation

Imputed depreciation is subject to the following determinants:

• Depreciation volume : Instead of the theoretically correct, but difficult to estimate replacement values ​​at the probable replacement time of the asset, the replacement values ​​on the respective balance sheet date are selected. The final value is regularly assumed to be zero.
• Depreciation period : is the expected useful life of property, plant and equipment, which is also difficult to estimate. Imputed depreciation can be continued as long as the asset is used for operational purposes, regardless of whether it has already been depreciated under commercial law or not.
• Depreciation method : the ideal method is variable depreciation , which is based on wear and tear depending on the changing use of machine systems. The best alternative solution is straight-line depreciation with an even charge in individual periods.

Business aspects

Imputed costs are offset in the cost accounting and are also included in the operating result , but have no effect in the external annual financial statements under commercial law and are therefore not recognizable there. The internal price calculation is not based on the commercial law result, but on the result of the financial accounting , where the imputed costs are recorded. The lower price limit would be calculated too low if the imputed rents and leases were not included. The internal price calculation provides the price that a company would ideally have to charge on the market for its products or services . If this price cannot be achieved for reasons of competition, the competitive price must be selected. Imputed costs should generate a fair, comparable cost structure within the framework of a profit center calculation .

See also

• imputed entrepreneur's wage
• imputed interest
• calculative rent
• imputed risk
• imputed profit

Individual evidence

1. ↑ Clemens Kaesler: Cost and performance accounting of the accountants , 2011, p. 30 ff.
2. ↑ Günter Wöhe: Introduction to General Business Administration , 25th edition 2013, p. 894
3. ↑ Heinz Kußmaul: Business Administration for Entrepreneurs , 2008, p. 144 f.
4. ↑ Bernhard Mord-Wohlgemuth: Kommunale Doppik Hessen , 2008, p. 250