ACCOUNTING AND TAX ISSUES RELATING TO DEPRECIATION OF TANGIBLE ASSETS

Abstract

The article proposes a study on the financial and accounting implications of tangible assets depreciation. According to national accounting rules and IFRS, depreciation is the equivalent to irreversible impairment of assets. This amend character is given by correcting the fixed assets counting value to obtain the net counting value. The value of depreciation calculated by applying redemption quota to the counting value of the asset is included in operating expenses for the duration of its use until full recovery of input value and affects the outcome of the exercise.

Keywords

• depreciation methods
• residual value
• depreciable value
• the net accounting value