The production rhythm, its cost and efficiency of fixed assets depend on the timeliness and quality of repairs and improvements. It is therefore necessary to improve the system of cost accounting spent on them, which would allow making effective management decisions and preventing wasteful spending.

Classification of repairs as an object of analysis, accounting and control can allocate costs to specific repairs and their places of origin. Therefore, enterprises should independently determine the type of repair performed, and as appropriate to indicate in the order of the Company's accounting policies.

The cost of fixed assets improvement, for which it was decided as for capitalization, in accounting will appear as part of "capital investment", followed by the allocation of amounts to the debit account 10 called "Fixed Assets".  Repairs that do not increase the economic benefits of an object are shown in the debit account 23 "Production", or accounts of class 9 "Costs of", depending on the functional purpose.

In order to obtain information about the cost of repairs carried out in the whole enterprise in groups and types of assets, as well as to monitor the performance of repairs and data collection to compile reports, offer to open in your company chart of accounts additional sub-237 "Maintenance of fixed assets and other non-current tangible assets". There is a suggestion to use the following analytical accounts for the purpose of cost division between groups of assets: repair of buildings and structures, machinery and equipment repair, repair of vehicles, repair of tools, instruments and equipment, repair of other plant property, and repair of other non-current tangible assets.

There exist qualitative characteristics of the process in the accounting criteria (increase in future economic benefits initially receives a specified amount of future economic benefits), and quantitative criterion which is used in the tax accounting, when the cost of repairs and improvements are displayed under the general rules.

The costs of repairs and improvements are included within the 10 percent limit in the tax accounting. Amounts over 10 percent limit (excess) include an increase in the initial value of the repaired (improved) objects, and are subject to the further depreciation. Cost of acquisition / production, self-repair and upgrade, reconstruction or other improvement of non-productive assets are not the subject of the amortization. Under the term "non-productive fixed assets" is understood the noncurrent assets which are not used in the taxpayer's business
activity.

The structure of the 10-percent limit does not confer the following: the carrying amount of non-productive assets and the amount revaluation of fixed assets (except for indexation under § 146.21 of Tax code of Ukraine), land - Group 1, natural resources - a group of 13, which, according to Mr. 145.1.7 depreciation is not charged: the value of low-value tangible fixed assets under §§ 14.1 and 14.1.138 not included in fixed assets.

There is the need for classification of cost due to the difference in the "tax" and "accounting" of fixed assets. That is the tax accounting takes into account the value of the cost of repair measures only by "tax" fixed assets.

Tax accounting costs for repairs and improvements are quite flawed, forcing accountants to conduct two separate counts and compare differences between them.

Key words: fixed assets, repair, improvement, repair costs, capitalization, amortization, repair limit.