THE ROLE OF AMORTIZATIONAL POLICY IN ACHIEVING THE ACCOUNTING GOALS
Journal Title: The Institute of Accounting, Control, and Analysis in the Globalization Circumstances - Year 2017, Vol 2, Issue 3
Abstract
Introduction. The article analyzes the current state and general tendencies of amortization policy formation of enterprises. It is determined that the current depreciation policy doesn’t satisfy the accounting purposes. Depreciation deductions are made by the accounting service as part of the general accounting policy of the enterprise. Their main purpose is adjusting the amount of current expenses in order to reduce the taxable profit. Methods. The data basis of financial accounting documentation of different business field and size enterprises in Ukraine was used to provide the informative basis of empirical research studies. The study presents the research results and highlights the perspectives of deprecation policy of the enterprise. The data source on general tendencies of creation and use of enterprise amortization fund in Ukraine was the information portal of State Statistic Service of Ukraine Research methodology is based on theoretical insights into the problem and scientific instrumentation that contained the questionnaire, comparative analysis of deprecation policy of the enterprise and applying the deprecation charge in innovative industrial renewal. Results. It is proved that in order to form a depreciation policy, it is necessary to involve specialists not only in accounting but also in engineering services, since depreciation funds should be a significant source of investment in the renewal of non-current assets, along with the profit of the enterprise. In addition, the management of the technical service must manage the terms of use of non-current assets and control their qualitative composition. The main task of amortization policy is increasing investment activity and accelerated renewal of fixed assets remains unfulfilled. Discussion. In connection with this requires a more detailed study of the problems of the formation and implementation of depreciation policy, the effectiveness of which depends not only on the economic, material, and technical state of individual enterprises, but also the welfare of the state as a whole. To provide such changes is necessary to take into account the basic requirements for accounting : comparability, accuracy and objectivity, clarity and availability, timeliness, efficiency and rationality. It will help to provide the management apparatus, relevant services and specialists with the necessary reliable data on business processes and financial condition of the enterprise.
Authors and Affiliations
Dariia Trachova
Keywords
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