Benefits of Applying Different Depreciation Methods of Long-term Tangible Assets in a Company

Abstract

Long-term tangible assets comprise the major part of the available asset, and depreciation amounts compose a greater part of expenses. Therefore, it is very important to account these assets correctly because this influences the results of company activity. The topics of long-term assets depreciation have been investigated by different authors on theoretic and practical levels considering the peculiarities of a certain country. The authors of this article have aimed at investigating the influence of depreciation methods application on fee and profit accounting indices as well as at summarizing the necessity of accounting policy at a national level. The dependence of the calculated company profit on the depreciation method of long-term tangible assets is analyzed in the article.

DOI: http://dx.doi.org/10.5755/j01.ss.82.4.6611