The reporting effects of different approaches to the depreciation of fixed assets in the accounting policies of public universities in Poland

Abstract

Purpose: The aim of the article is to identify the reporting effects of the choice of method for the depreciation of fixed assets, defined in the accounting policy of a public university. Methodology: Empirical (qualitative) research was conducted in a deliberately selected group of public classical universities operating in Poland. The empirical material was col- lected by analyzing documents and from partially structured interviews conducted with the bursars (or their deputies) of these universities, who are considered to have the broadest knowledge about phenomena directly related to the surveyed entities’ finance and account- ing policies. Findings: Based on the results of the research, the depreciation approaches applied in public universities in Poland have been identified. Legal regulations relating to the man- agement of these fixed assets, which are important for implementing university tasks (i.e., necessary for research and education at the highest possible level), have also been estab- lished. The heterogeneity of the approaches leads to the lack of comparability of financial statements in this uniform group of public universities. Consequently, the identified nonuniform solutions affect the level of costs determined by universities while implementing tasks. Practical implications: The findings are important for university accountants (bursars) since they present them with solutions that can be applied in practice while pointing to the consequences of these different approaches. Originality/value: The principal cognitive value of the findings is the provision of empiri- cal arguments revealing the diversity of depreciation methods among units from the same sector of the economy – classical universities in Poland. At the same time, one of the sources of the problem of limited comparability of their financial results was indicated.