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Depreciable asset judgment of works of art, "less than 1 million yen per point" to standard

Depreciable assets judgment will be applied from the business year starting after January 1, 2015

In principle, works of art, etc. with an acquisition price of less than 1 million yen are classified as "depreciable assets," and works of art, etc. with an acquisition price of 1 million yen or more are, in principle, classified as "non-depreciable assets." depreciable assets”.

​Summary of amendment Q&A

Q: What is the content of the revised circular?

 

A: The handling of the notice before the revision was that it was a work related to the creation of an artist listed in an art-related yearbook, etc., or the acquisition price was 200,000 yen per item (20,000 yen per issue for paintings). Whether or not works of art, etc. fall under depreciable assets was determined based on the above.
 

However, it has been pointed out that there are multiple art-related yearbooks, etc., and that their publication standards may differ, and that the amount standard of 200,000 yen may be too low as a standard to distinguish whether it is a depreciable asset or not. Therefore, we revised the notification based on the opinions of experts on the actual transaction value of works of art, etc.
 

According to the revised notification, works of art with an acquisition price of less than 1 million yen are, in principle, depreciable assets, and works of art with an acquisition price of 1 million yen or more are, in principle, non-depreciable assets. I decided to treat it as applicable.
 

Even works of art with an acquisition price of 1 million yen or more can be treated as depreciable assets if they fall under the category of "things whose value is clearly declining over time." is.

(Note) Even if the acquisition price is less than 1 million yen per item, if it is clear that the value will not decrease with the passage of time, it will not be treated as a depreciable asset. .

Outline of Revision Q&A

Q: In principle, works of art with an acquisition price of 1 million yen or more are non-depreciable assets. Even if it is more than yen, it is treated as a depreciable asset. What are the specific works of art, etc. that "clearly lose their value over time"?

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A: Even if the acquisition price is 1 million yen or more per item, there are some items that fall under depreciable assets as "items whose value is clearly reduced over time", such as: Works of art that satisfy all of the following items are listed.

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●The work must be acquired for decoration or display purposes (excluding those that are open to the public for a fee) in places that are used by an unspecified number of people, such as hall lobbies and funeral halls.

 

●It is difficult to relocate and it is clear that it will be used only for the intended purpose.

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●If it is assumed that it will be used for other purposes, it must not be expected to have a market value as a work of art, etc., based on its installation and usage conditions.

 

It should be noted that whether or not works of art, etc. that do not fall under this example fall under the category of "things whose value will obviously decrease with the passage of time" should be determined by referring to these matters, etc. Judgment will be made based on the actual situation.

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