Depreciation Policy Research Articles

АМОРТИЗАЦИОННАЯ ПОЛИТИКА ОРГАНИЗАЦИИ: БЫТЬ ИЛИ НЕ БЫТЬ?

The article describes approaches to the implementation of the company's strategy in the framework of corporate governance through the system of its internal policies. Special attention is paid to the company's depreciation policy as an important tool for managing its financial flows. The main objectives of the organiza-tion's depreciation policy and the tools that will ensure the achievement of these objectives are considered.

Інструментарій державної політики у сфері підтримки та стимулювання розвитку малого бізнесу

The definition of state policy on business regulation is understood here in accordance with the current Commercial Code of Ukraine, namely: it is a system of economic, social, organizational, legal and political support of a favorable business climate so as to form and develop small business. This understanding allows us to distinguish three blocks within state policy. The first block includes fiscal components of economic relations, primarily related to financing (this block includes monetary policy, investment policy, antitrust policy, depreciation policy, innovation policy); the second block includes organizational measures, in particular, support for small businesses, domestic banks and funds financing small businesses; the third block includes legal measures, namely: a simplified system of registration and licensing, improved tax legislation as for the implementation of international accounting standards, simplification of the accounting system for small businesses, etc. The classification of the system of state policy tools in the field of supporting and stimulating small business development is considered. Unlike others, it provides systematizing state influence tools in two main vector directions: state regulation tools and state policy tools of support and stimulation of small and medium business entities, which makes it possible to clarify the composition of each group. The composition of the state regulation mechanism of small business development has been clarified as one including functions, methods, means and tools, thus allowing us to single out the tools of state regulatory and coordination influence. The concept of state support for small business has been specified as a component of public policy, which is interpreted in the work as a set of methods and forms of promoting small business, taking into account the interests of the state and businesses, allowing us to formulate its purpose, directions and tools. The latter are divided into three groups by their features: state forecasting and planning of small business development by type of economic activity; tax and financial and investment support; information, advisory and institutional support for the development of small business entities

ВПЛИВ АМОРТИЗАЦІЙНОЇ І ПОДАТКОВОЇ ПОЛІТИКИ НА ОРГАНІЗАЦІЮ ОБЛІКУ КАПІТАЛЬНИХ ІНВЕСТИЦІЙ

ВПЛИВ АМОРТИЗАЦІЙНОЇ І ПОДАТКОВОЇ ПОЛІТИКИ НА ОРГАНІЗАЦІЮ ОБЛІКУ КАПІТАЛЬНИХ ІНВЕСТИЦІЙ

КЛАСИФІКАЦІЯ АМОРТИЗАЦІЙНОЇ ПОЛІТИКИ ДЛЯ ЦІЛЕЙ ОБЛІКУ ТА АНАЛІЗУ: СУЧАСНИЙ СТАН І ПЕРСПЕКТИВИ РОЗВИТКУ

КЛАСИФІКАЦІЯ АМОРТИЗАЦІЙНОЇ ПОЛІТИКИ ДЛЯ ЦІЛЕЙ ОБЛІКУ ТА АНАЛІЗУ: СУЧАСНИЙ СТАН І ПЕРСПЕКТИВИ РОЗВИТКУ

Alter Ego Only Four Times? The Case Study of Business Profits in the Visegrad Group

The paper studies a new point of view and the approach to profit as an inherent part of business finance as well as a symbol of every healthy economy. The fundamental function of the profit is a stimulus; it means initial motivator of the business activity. The profit provides core resources for survival at the business start and after the stabilization, it is the synonym for progress. The aim of this paper is to detect significant change-points in times series of EBITDA during the analysed period in every country of the Visegrad Group to recognize the progress years in the monotonic development. We use a method of homogeneity test of time series that delivers significant robust results. We observe the variable EBITDA to eliminate different tax, interest and depreciation policies of these emerging countries. The original research of this article is based on empirical results of business profits of the sample of 3,853 enterprises covered by the broad theoretical review. Firstly, we identify missing values; and detect the outliers by Z-score and Grubbs test. EBITDA of 1,058 Slovak enterprises, 688 Czech enterprises, 1,376 Polish enterprises and 731 Hungarian enterprises is analysed during the period from 2010 to 2018. We eliminate the inconsistent observations and construct average values of EBITDA. Secondly, we prove normality by Jarque-Bera test, and support it by Shapiro-Wilk test, Anderson-Darling test, Lilliefors test to deliver reliable results. Thirdly, we find an independency of distribution that confirm randomness by the Box-Pierce test. And finally, we identify the years that affect heterogeneity of EBITDA in the countries of the Visegrad Four. We uncover some really surprising results. For all countries in the Visegrad Four, the year 2013 is detected as a change-point at a significance level of 0.05. This significant year shifts EBITDA between two homogeneous series with corresponding central lines and recognizes the similar annual development within the groups. In addition, we discuss the results to the areas and factors affecting the business risk. The adjustable area represented by the business dynamism has no significant impact on the development of EBITDA. The uncontrollable macroeconomic factors such as a GDP, unemployment rate, inflation rate, average monthly gross wage, and Ease of doing business index demonstrate the same development of Slovak, Czech, Polish and Hungarian enterprises. We connect our gained results to the undisputed influence of these factors and its derived components on monotonic development of EBITDA. Despite the fact, that the countries are not economically interconnected as they used to be in the past, in has to be underlined that their mutual relations are still very narrow and close and that might be the reason, why identical results are achieved in the countries with divergent development.

ОБЛІКОВО- ІНФОРМАЦІЙНИЙ БАЗИС ІНФРАСТРУКТУРНОЇ ПІДТРИМКИ ЕФzЕКТИВНОЇ АМОРТИЗАЦІЙНОЇ ПОЛІТИКИ

ОБЛІКОВО- ІНФОРМАЦІЙНИЙ БАЗИС ІНФРАСТРУКТУРНОЇ ПІДТРИМКИ ЕФzЕКТИВНОЇ АМОРТИЗАЦІЙНОЇ ПОЛІТИКИ

The effect of tax incentives on U.S. manufacturing: Evidence from state accelerated depreciation policies

Accelerated depreciation policies decrease the cost of new investments by allowing firms to deduct the new investments from their taxable income more quickly. Countries around the world use these policies to stimulate business investment. To date, almost all empirical evidence of the effect of these policies relies on cross-industry variation in their generosity. Using a modified difference-in-differences framework, this paper estimates the effects of state adoption of federal accelerated depreciation policies on the U.S. manufacturing sector. The results based on this alternative source of quasi-experimental variation reinforce findings from the cross-industry literature and suggest that accelerated depreciation policies have large and significant effects on capital investment.

Depreciation policy and depreciation fund as indicators of improving equipment efficiency

Each promising company is required to develop a depreciation policy as part of its investment policy. One aspect of the latter is the depreciation fund. This term is introduced by the authors as one of the tools for improving the efficiency of company management. Depreciation fund assets will be used for the reproduction of fixed assets. Modern accounting standards do not contain these tools, which may have negative consequences.

ЕКОНОМІЧНІ МЕТОДИ ДЕРЖАВНОГО РЕГУЛЮВАННЯ ІНВЕСТИЦІЙНИХ ПРОЦЕСІВ У ЖИТЛОВОМУ БУДІВНИЦТВІ

Розглянуто особливості застосування економічних методів державного регулювання інвестиційних процесів у сфері житлового будівництва в сучасних умовах. Зазначено, що ключовим елементом виходу ринку зі стану депресивної стабільності має стати посилення стимулювальної ролі економічних методів регулювання, а також створення дієвого механізму конкуренції на ринках підрядних робіт.

UK Accelerated Depreciation Policy in an International Context

In this paper we examine two aspects of the temporary increase in the UK Annual Investment Allowance (“AIA”) maximum, allowance, raised from £200,000 to £1m for the calendar years 2019 and 2020 by UK Finance Act 2019 section 32 and Schedule 13. First we scrutinize the technical operation of the legislation as it affects taxpayers with accounting years that do not correspond exactly with the commencement or termination of the increase. We conclude that there is a potential timing trap for businesses whose accounting period begins during the temporary increase but extends beyond the termination on 31 December 2020. This pitfall can dramatically diminish the available allowance from the headline figure depending on the precise timing of the qualifying expenditure. Secondly, we look at the impact of the temporary increase on the cost of capital for a multinational company when there is the opportunity for profit shifting, comparing this to a UK firm with no such possibility. We show that increased AIA will bring down the cost of capital for UK firms that cannot profit shift to a level similar to that for firms that do migrate profits abroad. In contrast, we find that not only is the cost of capital already lower for firms with opportunities for profit shifting, but also AIA is likely to be less effective in reducing their cost of capital. This in turn suggests that the AIA will not be so successful in stimulating investment by firms that engage in profit shifting. At the same time, the more generous allowance is associated with a narrow tax base for all taxpayers, which would reduce revenue to the UK Exchequer without the intended investment stimulus for many UK firms.

Tax Enforcement and Investment Incentives: Firm Responses to Accelerated Depreciation in China

We evaluate the effects of a Chinese accelerated depreciation policy that occurred in 2014 on firm investment. We present three findings. First, on average, the policy increased firms' investment in eligible capital, especially the purchase of equipment and machines. Second, the policy effects are stronger for larger firms, firms with more cash, and firms with better access to finance, which tend to be less financially constrained but have better tax compliance. Third, the effect magnitude increases with imputed county tax enforcement but decreases with provincial tax fraud rate. These results shed light on the importance of improving tax compliance in making tax incentives effective.

АДАПТИВНЕ УПРАВЛІННЯ ІНВЕСТИЦІЙНОЮ ПОЛІТИКОЮ ПІДПРИЄМСТВА

The methodological basis of the research is a combination of theoretical and scientific methods: analysis, synthesis, systematization and comparison, theoretical and logical generalization.Results. Revealed that one of the directions of increasing the level of use of productive resources in the model of the mechanism of implementation of the strategy of forming the anti-crisis potential of the enterprise within the system of adaptive control is the implementation of investment policy of enterprises. Reflected that the production component in this context is largely determined by the investment policy adopted at the enterprise, because it involves making managerial decisions on the renewal of fixed assets, the choice of depreciation policy, the need for the introduction of new technologies, and the improvement of the competences of workers. Substantiated that initiation of investment policy within the system of adaptive management involves the definition of goals, objectives and policy rules, as well as approval of the consolidated investment budget in accordance with the planned cash flows and possible sources of financing of selected investment projects. Established that the formation of enterprise investment policy within the framework of adaptive management system provides for the development of a system of goals and tasks based on retrospective data, parameters of the current and future investment portfolio of the enterprise, based on its own ability to generate investment resources and maintaining its basic indicators such as profitability, liquidity, risk according to a set of financial instruments. Substantiated that in the process of realization of investment policy on the basis of parameters determined in the budget the attraction of necessary amount of financial resources and investments of capital is carried out. Noted that the final stage of the process of formation and implementation of the investment policy of the enterprise within the system of adaptive management is the monitoring of implementation and assessment of the effectiveness of investment policy.Originality. The developed model of the process of formation and realization of the investment policy of the enterprise within the system of adaptive management allows us to formulate in the enterprise its own regulations for its implementation. The composition of the model functions ensures that the responsibility for achieving the goals and objectives of the investment policy, which are integral and dependent on the effectiveness of financial policy, labor management policies.Practical significance. Planning, implementation and control of the whole set of investment decisions of the enterprise within the system of adaptive management allows to continuously monitor and regulate the efficiency of using the entire capital of the enterprise and increase its anti-crisis potential.

ОСНОВНЫЕ МЕТОДЫ АНАЛИЗА ПРИ ПРИНЯТИИ РЕШЕНИЯ И ВЫБОРА ЭФФЕКТИВНОГО ИНВЕСТИЦИОННОГО ПРОЕКТА

The methods used in the selection and analysis of an effective investment project are considered. The basis of calculations: payback period, discounted payback period, accelerated depreciation. A brief analysis of the use of evaluating the effectiveness of projects in different European countries. In developed countries, accelerated depreciation is a powerful incentive for introducing innovative equipment and technologies into the economy. A general methodological requirement for the design of a depreciation policy is to maximize the use of opportunities to reduce taxable profits through depreciation. In conclusion, it is concluded that when calculating the payback period of a project, it is necessary to use the net cash receipts rate and use accelerated depreciation on equipment and technologies acquired on the basis of investment projects.

Deprication Measurement on Computer Lab Inventory using Straight-Line Method

Institution or college, especially those with computer-related departement, the avability of a computer lab is very important to support teaching and learning activities, research, or training for the users. The equipment that recorded in the inventory of computer lab have a lifespan, and each year there will be depreciation or impairment of assets. Using straight-line method and the depreciation and amortization guideline from the regulation from the minister of the treasury of the Republic Indonesia in 2013 on the depreciation module of goods, it can be calculated the amount of depreciation of computer lab inventory such as computer and networking equipment. It is expected that with the use of straight-line method, there will be a depreciation analysis and issued a depreciation policy related to equipment inventory in computer lab.

Tax Policy and Local Labor Market Behavior

Since 2002, the US government has encouraged business investment using accelerated depreciation policies that significantly reduce investment costs. We provide the first in-depth analysis of this stimulus on employment and earnings. Our local labor markets approach exploits cross-industry variation in policy generosity interacted with county-level industry location data. This strategy identifies the partial equilibrium effects of accelerated depreciation. Places that experience larger decreases in investment costs see an increase in employment and earnings. In contrast, the policy does not have positive effects on earnings-per-worker. Overall, our findings suggest federal corporate tax policy has large effects on local labor markets. (JEL D25, G31, H25, H32, J23, J31, R23)

The impact of depreciation policy on financial performance and investment opportunities of the industrial enterprise

The impact of depreciation policy on financial performance and investment opportunities of the industrial enterprise

An empirical analysis of the impact of floating exchange rate on balance of payment in Nigeria (1986 - 2016)

Abstract. This paper empirically investigates the impact of floating exchange rate on balance of payment in Nigeria during 1986 – 2016. Unit root test, cointegration test, VEC Granger causality/Exogeneity Wald test and Vector Error Correction Model (VECM) were econometric tools used to establish the relationship between exchange rate and balance of payment. The results showed a positive and statistically significant relationship in both short-run and long-run between balance of payment and exchange rate of the Nigerian Economy during the period under review. The VEC Granger Causality/Block Exogeneity further revealed that the major determinants of exchange rate are real GDP and money supply. It further reveals that the nexus among the variables runs from government expenditure to real GDP and money supply to exchange rate, and then to Balance of Payment. Therefore it was recommended amongst other things that the policy of exchange rate depreciation should be maintained but with government intervention guide. Government through Central Bank of Nigeria (CBN) should apply expenditure reducing monetary policies through money supply and domestic credit to promote favourable BOT which invariably stabilizes BOP. Keywords. Floating exchange rate, Balance of payments, VECM. JEL. F10, F30, F31.

QUESTIONS OF RECOGNITION AND DEPRECIATION OF OBJECTS OF ACCOUNTING IN THE FIELD OF LAND RELATIONS

Recognition of criteria for all assets of an enterprise based on the study of normative and methodological documents were investigated and summarized in this article. The approaches to the criteria for recognition and depreciation of such objects of long-term assets as capital expenditures on land improvement and land use rights are explored. The depreciation charge for capital expenditures on land improvement should be carried out using the straight-line method, the method of reducing the residual value or cumulative, since the tax law does not use the method of accelerated reduction of residual value, and it is inappropriate to apply the production method of depreciation. Using the method of reducing the residual value or cumulative, will allow in the shortest possible time to accumulate depreciation deductions, keeping them from inflation depreciation. The straight-line method should be applied for the right to use a land plot because it is possible for use for the objects that were recognized as intangible assets. In accounting for monitoring the formation and use of depreciation deductions for reproduction of the above-mentioned objects of long-term assets, it is recommended for the calculation of the amounts to collect the required settlement information on accounts using the MS Excel table processor. The practical application of this table processor will simplify the calculation and promptness of providing information to investors, shareholders and others, and it will enable them to strategically approach the formation of depreciation policy of the enterprise.

Analysis Use of Fixed Assets Depreciation Method on Company Profits,

This study was conducted with the aim to know the accounting policy ofdepreciation of fixed assets determined by the company and how the influence ofaccounting policy depreciation of fixed assets applied by the company to thecompany's earnings. The research method used is descriptive method of analysis isa research that aims to collect data that have a relationship with the problemsstudied, then processed and analyzed and then the solution. While the data used isquantitative data in the form of numbers. After examining and analyzing thecompany's treatment in calculating depreciation for fixed assets, it can beconcluded that the accounting policy of depreciation of fixed assets applied by thecompany has been in accordance with the applicable financial accountingstandards that is straight-line method and the use of different methods will result indifferent amounts of depreciation. Using the straight-line method of depreciationexpense for each fixed period, profits generated in the early years are greater thanin subsequent years. While in the method of balance decreased multiplydepreciation expense higher in the early years and lower load in the coming period.The resulting profits were smaller in the early years and were greater in previousyears.

Концептуально-методологічні підходи формування амортизаційної політики підприємства та держави

Концептуально-методологічні підходи формування амортизаційної політики підприємства та держави