S. Kafka. Depreciation of enterprise’s non-current assets: contents and purposes.

Abstract

On the basis of the economic content of depreciation of fixed assets a disagreement on the interpretation of depreciation as a way to accumulate funds for the reproduction of fixed assets was expressed by the author. Purpose. To explore basic approaches of scientists to the interpretation of economic content of depreciation and develop recommendations to clarify the nature of the present stage of economic development. To examine the actual state of accounting depreciation and justify its appropriateness. Methods. Theoretical methods of cognition (abstraction and generalization, analysis and synthesis, induction and deduction and other methods for producing conceptual knowledge) were used for the synthesis of theoretical and methodological principles of accounting depreciation. For analytical research the methods of tabular presentation and comparison of information were used. Results. It has been proved that the depreciation of fixed assets obtained free of charge (including increases in the value of assets) distorts financial information, also it has been illustrated how the procedure of recording other operations in connection with a new look at the content of depreciation (on the example of the accounting of targeted financing) is changed. Conclusion. It was established that under the market conditions depreciation is the systematic return in the turnover of an enterprise of the earlier advanced funds to purchase (manufacturing, improving, getting a contribution to the authorized capital) fixed assets and intangible assets by including the amount of wear to the cost.