The following article demonstrates how to record tangible fixed assets with an increased straight-line and accelerated depreciation rate in the first year of use. In ABRA Flexi, navigate to the "Assets" module.
The Income Tax Act allows the tax depreciation of selected asset types to be increased in the first year by 10%, 15%, or 20% of the acquisition cost. This applies to assets classified in depreciation groups 1 through 3 (excluding passenger vehicles), and the accounting entity must be the first owner of the asset. In subsequent years, the depreciation amounts are reduced compared to "standard" depreciation.
Straight-line depreciated assets
Open a new asset card using the "New" button and, in the "Basic Sheet" tab, fill in the asset type and category, the acquisition cost, the purchase date, the method of acquisition, and, if applicable, the acquisition document.
Next, switch to the "Depreciation" tab, where you select the option to generate accounting depreciation and enter the number of depreciation months. From the menu, choose the depreciation method — straight-line, along with the applicable depreciation group and the percentage increase rate.
Select "Generate depreciation" in the upper-right corner of the asset card. The result is a set of accounting and tax depreciation entries calculated according to the configured parameters.
Checking "Post asset classification" will create an entry in the "Events" tab.
The first-year tax depreciation of CZK 10,000 was therefore increased by 10% of the acquisition cost, bringing the total depreciation to CZK 15,000. In subsequent years, the straight-line depreciation is reduced by the amount of the first-year increase.
Accounting depreciation is calculated on a monthly basis. The useful life of each asset type is a key factor in this calculation. The acquisition cost is divided by the number of depreciation months.
Accelerated depreciated assets
Open a new asset card using the "New" button and, in the "Basic Sheet" tab, fill in the asset type and category, the acquisition cost, the purchase date, the method of acquisition, and, if applicable, the acquisition document.
Next, switch to the "Depreciation" tab, where you select the option to generate accounting depreciation and enter the number of depreciation months. From the menu, choose the depreciation method — accelerated, the percentage increase rate, and the applicable depreciation group.
Select "Generate depreciation" in the upper-right corner of the asset card. The result is a set of accounting and tax depreciation entries calculated according to the configured parameters.
Checking "Post asset classification" will create an entry in the "Events" tab.
The first-year tax depreciation of CZK 16,667 was therefore increased by 10% of the acquisition cost, bringing the total depreciation to CZK 21,667. In subsequent years, this increase is reflected in the tax depreciation calculations for the remaining depreciation period. Unlike straight-line depreciation, the accelerated depreciation method is based on the residual value of the asset.
Accounting depreciation is calculated on a monthly basis. The useful life of each asset type is a key factor in this calculation. The acquisition cost is divided by the number of depreciation months.
More examples of asset record-keeping can be found here.