What is the difference between major and current repairs

Repair of fixed assets are actions carried out to reduce the degree of wear and tear and restore the technological capabilities of fixed assets in order to maintain them in an efficiently functioning state.

Fixed production assets must be used efficiently, and for this they need to be restored from time to time. This is possible in various ways: through modernization, reconstruction or repairs of varying degrees of duration and thoroughness.

By carrying out repairs as a result of investing certain costs, the value of the asset being repaired increases, that is, the operating efficiency increases.

Let's consider ways to repair fixed assets, analyze the features of its reflection in accounting.

The concept of “current repairs”

A number of legislative acts adopted in the Russian Federation help to clarify the term “current repairs”. These include the Decree of the State Construction Committee of the Russian Federation dated September 27, 2003 No. 170 “On approval of the Rules and Standards for the Technical Operation of the Housing Stock”, Urban Planning Code of the Russian Federation.

The definition of “routine repair” characterizes systematic work related to the correction of minor defects and malfunctions.

The goal is to maintain the building’s engineering structures in working condition. Activities include lists of work to replace or repair existing equipment, strengthening it in order to prevent further destruction. An example is strengthening a roof structure by adding rafters.

Current repairs have the following features:

• planning. The plan is drawn up several years in advance after inspecting the entire territory and taking inventory of the main structural elements;
• systematicity. Only constant maintenance of the building and its engineering structures in working condition increases its service life.

Preventive measures are carried out by the campaign manager or contractor.

This type of work can be not only preventive, but also urgent and unforeseen. Its goal is to urgently eliminate a newly identified defect for the purpose of restoration. Problems are discovered by the residents of the house personally or identified during ongoing repair work.

Repair of fixed assets: what is it?

Definitions of repair as a way to maintain and improve the efficiency of fixed material assets are not provided in modern regulations. The Regulation on carrying out planned preventive repairs of industrial buildings and structures MDS 13-14.2000, approved by Decree of the USSR State Construction Committee dated December 29, 1973 No. 279, has not been cancelled, and therefore is considered relevant: it defines the repair of this particular type of fixed assets. This is considered a combination of technical measures related to improving or maintaining at the same level the operational characteristics of buildings, structures and their structures.

The concept of "overhaul"

A major overhaul has larger tasks than the current one.

Implies restoration or complete replacement:

1. Building design elements.
2. Engineering systems.
3. Communications.

The goal is to eliminate the wear and tear of the building that affects the functioning of the systems.

Capital work is manifested in a complete redevelopment of the building, installation of new utility networks that are stronger and more reliable, modernization of existing equipment, but not in the construction of new extensions.

By type it is divided into:

• comprehensive overhaul;
• selective overhaul.

In the first case, a one-time restoration of worn-out elements of the building occurs. It is carried out for buildings whose structural elements (with the exception of the foundation, walls and support pillars) have become unusable. Selective is suitable in situations where the building is in satisfactory condition, but it is necessary to carry out a deep reconstruction of one or two types of work, for example, replacing the roof or repairing the facade.

The goal of a major overhaul is not to partially maintain the house in good condition, but to restore characteristics as close as possible to the new building.

Examples of work are:

• complete renovation of the exterior of the house;
• replacement of in-house engineering systems, for example, heating pipes, sewer, electrical networks.

The peculiarity of the work is that it is carried out in a complex, simultaneous updating of all systems of one building.

Walls and foundations, as load-bearing supporting structures, are considered not subject to major repairs. Their wear and tear leads to the recognition of the house as subject to demolition or complete reconstruction.

Characteristics of repair of fixed assets

Repair, as a way to maintain the OS in an effective condition, is characterized by the following factors:

• the functions of the fixed asset being repaired remain unchanged;
• the technical capabilities of the asset are not expanded;
• the characteristics of the object are as close as possible to the original ones;
• the initial cost of the asset reflected on the balance sheet increases as a result of repairs.

Repair of fixed assets is carried out in different ways:

• repairing damage;
• repair;
• replacement of individual elements, structures and assemblies;
• maintenance (maintenance, lubrication, checking, cleaning, setting, adjustment, etc.).

Differences between the two types of work

The similarity of the concepts makes it possible to confuse the two types of work.

The difference between a major overhaul and a current one is easy to understand when comparing the criteria:

Current repairs are accompanied by such actions as repair, replace, strengthen, repair, and change the appearance. They do not make radical changes; they eliminate the manifestation of a specific problem that has arisen.

A major overhaul is more thorough and in-depth. Affects several interrelated elements of the house at once.

To understand how the current repair of an elevator differs from a major one, you need to understand that the elevator belongs to common property. This is defined in legislation, law 185-FZ of July 21, 2007. It is used by owners of residential apartments living in them under rental agreements, and owners of non-residential premises. If there is a document - an act indicating that the elevator shaft, lift or electric motor cannot be repaired in the current order - major work is carried out. Most often, overhaul is necessary after 5-15 years of operation. Freight and passenger elevators are operated differently in terms of intensity and load capacity. The repair period also depends on the quality of the current scheduled repair work on elevator equipment, especially when it comes to the electric motor.

Current and major repairs in the local area have the following goal - giving an aesthetically pleasing appearance. But they differ according to additional criteria.

Ongoing work will consist of:

• partial restoration of the sidewalk and lawn;
• improvement of passages for transport, internal roads for cars;
• painting playgrounds;
• repairing water wells.

At the same time, capital work will consist of complete restoration of the road, restoration of playgrounds, and repair of fences.

What are the differences according to the town planning code?

The differences between major and current repairs according to the Civil Code of the Russian Federation arise from the very definitions of these activities:

1. Current repairs affect only the partial restoration of lost functionality and appearance. Its purpose is to maintain the required performance of the structure during operation. It aims to eliminate defects and continue to use the repaired items.
2. Major repairs are carried out to eliminate significant physical wear and replace structural elements to extend the life of the building. It involves the dismantling of worn-out structures and the installation of new ones. Accordingly, repairs differ in the scope of work and the timing of their implementation. Read more about what major repairs mean and what types there are, read here.

Financing difference

Financing all types of work is not an easy task. Depends on the type of work performed and the type of construction. A private home is repaired only at the expense of its owner. In an apartment building we are talking about the common property of the owners.

Article 44 of the Housing Code of the Russian Federation (LC RF) determined that at a general meeting of owners of a residential apartment building, a decision is made to carry out repairs and issues with financing are resolved. You should be aware of the significant differences characteristic of the material support for capital or routine repairs of common property in a multi-storey building.

The costs of ongoing work are low. They are made at the expense of funds transferred monthly by each owner of residential premises in the house, according to the column maintenance of residential premises. The money is accumulated in a special account of the management company and has a specific purpose - ongoing repair work. The account is replenished by income received from renting out part of the premises in the house, for example, shops on the ground floors.

80% of the money from the fund is spent on planned work, the rest is saved for unforeseen work.

Major repairs according to clause 2 of Art. 158 of the Housing Code of the Russian Federation is paid based on the decision made at the meeting of home owners. Representatives of the management company are present at the meeting and will outline a complete work plan. The rate for major repairs is determined at the level of government of the subject.

The fund is replenished by monthly contributions under the capital repairs column. The accumulated money supply becomes the basis for creating an estimate for repairs. State subsidies play an equally important role, although they are not always provided. The place where the fund is formed plays a big role. If this is a management organization, then the repairs are carried out only at the expense of the owners of the house; the management company is obliged to pay the bills. If she has the material and technical base, she can carry out the work independently. Transferring funds to a regional operator changes the order. The regional operator enters into an agreement with a contractor to carry out work.

When accounting for funds in the Management Company, they are divided by sources of financing. Accounting is different when transferring money from a budget organization or owners/tenants of premises in an apartment building. The tax accounting of funds received is also different. All accounting transactions can be checked for the purpose of open discussion of the results or progress of repair work.

Nuances of accounting for OS repairs

The specifics of accounting for the costs of repairing fixed assets must be reflected in the accounting policies of a particular enterprise and are formalized by an appropriate order. As a rule, these funds are included in the costs of production or circulation, for which one of the ways is chosen.

1. Actual expenses are included in distribution costs. This method is used mainly for current repairs: expenses are written off in the same period in which they were incurred.
2. A special repair financial reserve is created. The organization chooses the procedure for accruing reserve funds in relation to the special limits established in internal regulations for such deductions, the size of which depends on the group of fixed assets.
3. Attributing repair costs to deferred expenses so that they can be written off evenly later. This method is more convenient if large-scale repair work is to be carried out, and a fund or reserve for this has not been created. If you write off a large amount for these expenses at once, the reflection of the cost of work will be disrupted.

What documents should I use to confirm repair costs?

The grounds for accounting for expenses are:

• agreement on compensation of expenses to the tenant (if there is such a provision in the contract);
• defective statement (free form, records the need to restore or correct office deficiencies);
• contract for the performance of work (contract);
• estimate of repair costs;
• certificate of completed repair work;
• act of acceptance of work performed (form KS-2) and a certificate of the cost of work performed and expenses (form KS-3);
• act on write-off of materials (if repairs are carried out on your own).

Dates

A significant difference between current and major repairs lies in the timing of their implementation; they are regulated by the Housing Code of the Russian Federation.

• Capital work is carried out in accordance with the established schedule, depending on climatic conditions, design features of the structure, and date of construction. For temperate climates the period is 25 years or more.
• The current one is carried out in accordance with the 5-year plan adopted at the general meeting of residents. Its frequency (quarterly, annual, etc.) is accepted in accordance with current standards.

According to departmental standards (VSN 58-88), the minimum period of effective operation is:

• for large-panel and large-block houses with concrete floors under moderate conditions - 3-4 years for current repairs and 16-20 years for major repairs, and for severe conditions - 3-5 and 20-25 years, respectively;
• for houses with brick walls and wooden floors - 2-3 and 10-15 years, and in difficult conditions - 2 and 8-12 years, respectively.

Repairing porches - correctly and inexpensively

To repair reinforced concrete treads, it is necessary to make a notch up the step and apply cement mortar to this area. You can use sulfur or liquid lead. A similar procedure is carried out with brick treads.

• To fasten the formwork elements, it is better to use self-tapping screws; they will not be as difficult to pull out when dismantling the structure, as, for example, ordinary nails;
• You will need to purchase perforated corners;
• Between the frame and the edge of the concrete, as well as under the mesh itself, there must be a distance of at least 25 mm;
• At the first signs of deformation of the structure, concrete pouring must be stopped and the formwork reinforced so that it does not break;
• The concrete solution is vibrated with a special device, which will avoid the formation of voids in the concrete structure due to the presence of air in the composition;
• The type of reinforcement is selected depending on the design of the staircase. In areas that experience increased tensile pressure, a reinforced structure should be constructed.

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Repair of a porch in an apartment building

The essence of the document boils down to the following - fencing or enclosing and at the same time load-bearing structural elements of an apartment building are classified as the common property of the residents. This means that the list of common property also includes:

At the second stage, the surface of the porch entrance area is trimmed. In this case, it will be necessary to remove all the concrete covering the reinforcing bars to a depth below the reinforcement belt of at least 25-30 mm. If part of the steel rod has become unusable due to corrosion, you need to cut a groove in the concrete and remove all the reinforcing thread. Instead, a rod of the same cross-section and length is laid and welded.