The content and purpose of non-current assets depreciation
Journal Title: Економічний аналіз - Year 2017, Vol 27, Issue 1
Abstract
Introduction. The presence of controversial issues and discussions on accounting of non-current assets amortization and depreciation suggest the relevance of topic of the research. Among these problems we can determine the definition of the economic essence of depreciation in the current economic conditions, the issue of harmonization of tax and accounting amortization and depreciation, the choice of the optimal useful life of fixed assets and setting residual value, if amortization can be considered as a financial source of processes in renovation of non-current assets etc. Purpose. The article aims to investigate the basic approaches of scientists to the interpretation of economic essence of depreciation, to develop the recommendations for clarifying its nature at the present stage of economic development, to examine the actual state of depreciation accounting of non-current assets, which are received free of charge, and solve its feasibility. Method (methodology). A historical method has been applied to investigate and ascertain the economic essence, formation and evolution of amortization category within accounting. Theoretical methods of cognition (abstraction and generalization, analysis and synthesis, induction and deduction and other methods producing the conceptual knowledge) have been used for the synthesis of theoretical and methodological principles in accounting of non-current assets depreciation. For analytical research the methods of tabular presentation and comparison of information have been applied. The works of domestic and foreign scientists and economists on problems of calculation and display of non-current assets depreciation in accounting, regulatory and legislative acts of Ukraine controlling the scope of accounting and financial reporting of enterprises are the methodological basis of the study. Results. In the article the author's definition of the term "depreciation" has been proved. The disagreement with the interpretation of depreciation as a way to accumulate funds for the reproduction of non-current assets has been advanced. The problem of depreciation of non-current assets obtained by the enterprise free of charge has been considered.
Authors and Affiliations
Sofiia Kafka
Keywords
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