DEPRECIATION OF FIXED ASSETS AND ITS MAIN ELEMENTS

Abstract

Introduction. Depreciation of fixed assets constitutes an important financial process in any organization. In modern economic conditions, an important goal of the activities of organizations is related to increasing the competitiveness and efficiency of business. To this end, accounting system in organizations should function effectively. The aim of the paper is to study the concept of "depreciation", as well as various aspects of the formation of depreciation policy, the classification of approaches to its formation and relevance in accordance with applicable standards. Methods. The theoretical basis of the study was based on general scientific methods of cognition such as analysis, synthesis and method of comparison. Results. One of the most complex concepts in accounting, the concept of "depreciation", has been studied. Existing views and approaches to the reflection of depreciation in accounting and reporting are disclosed. Conclusions. The efficiency of organizations, as a rule, is determined by its production potential, a significant share of which is fixed assets. Therefore, the organization of accounting for fixed assets can be identified as the primary task of an organization. At the same time, a significant role is assigned to the depreciation policy, since the methods of calculating depreciation and the correctness of its reflection present the foundation of sustainable financial potential.