Methodological Aspects of Depreciation as an Economic Category

Year 2016, Volume: 6 Issue: 1, 88 - 95, 01.03.2016

Yuriy İ. Sigidov Maria S. Rybyantseva Alexandr A. Adamenko Elena A. Yarushkina

Abstract

Depreciation is a complex economic category, the essence of which is manifested in the duality: this cost element, and its own source of reproduction of fixed assets and intangible assets. The depreciation laid relationship with asset and liability balance sheet; it touches on aspects such as formation costs, taxation issues, and reproductive process. That is why a methodological study of the depreciation essence, the allocation of the classification of bases, principles and functions seems urgent. In a study of a structured approach to the treatment of depreciation, developed fourteen grounds of classification, allowing to consider a category from different perspectives. Particular attention is paid to communication of depreciation or amortization, depreciation allocated classification. Principles of depreciation and highlighted the functions performed are designed to create a more complete picture of the depreciation. Thus, the methodological aspects of the depreciation that promote, further, formation of a technique of creation and use of a sinking fund.

Keywords

Amortization, depreciation, wear, reproduction process, classification, principles, functions