Accrual of depreciation of fixed assets: novations of Federal Accounting Standard 6/2020 “Fixed assets”

The article considers the features of the depreciation of fixed assets according to the new Federal Accounting Standard 6/2020 “Fixed Assets”, which becomes mandatory for use starting from the financial statements for 2022, the organization of the non-state sector of the economy, including private medical companies. It is noted that a new concept appears — liquidation value, which directly affects the amount of depreciation. There are differences in depreciation methods compared to the current Accounting Regulation 6/01 “Fixed Assets accounting”. A formula for calculating the amount of depreciation when using the reduced balance method is proposed. Practical examples of calculation of depreciation amount according to Federal Accounting Standard 6/2020 are considered.

Federal Accounting Standard 6/2020: Disputable issues of using some aspects of depreciation of fixed assets

Subject. Currently, it is still important to choose how depreciation is charged, since this exactly reflects how future economic benefits of fixed assets are allocated over time. Amendments to the Russian laws on the use of Federal Accounting Standard (FAS) 6/2020 Fixed Assets helped update not only the procedure, but also the terminology. This totally influence how depreciation is recognized as per accounting policies of a firm. Objectives. The study focuses on the specifics of regulation and accounting for depreciation of fixed assets. Methods. The methodology includes the methods of analysis, systematization, comparison and generalization of regulatory sources and scientific literature on the subject. Results. We conducted the critical analysis of FAS 6/2020 in terms of using depreciation aspects, which relate to the useful life of a fixed asset, its drop value and depreciation method. Having analyzed regulatory documents, we summarized requirements to the useful life of fixed assets. Conclusions and Relevance. Practical issues of the drop value assessment should be resolved with respect to international practices. We also suggest non-governmental regulators of the Russian accounting practice should outline guidelines for the assessment of the drop value. There are still pending issues concerning the calculation of depreciation when a fixed asset is not used each day of a month. The depreciation calculation method should be stipulated in accounting policies, like aspects of revising depreciation elements. Considering the use of FAS 6/2020, accounting policies should be updated to formulate the content of changed aspects. The findings may prove useful to accountants when updating accounting policies on the use of depreciation methods in 2022 and onward.

The reporting effects of different approaches to the depreciation of fixed assets in the accounting policies of public universities in Poland

Purpose: The aim of the article is to identify the reporting effects of the choice of method for the depreciation of fixed assets, defined in the accounting policy of a public university. Methodology: Empirical (qualitative) research was conducted in a deliberately selected group of public classical universities operating in Poland. The empirical material was col- lected by analyzing documents and from partially structured interviews conducted with the bursars (or their deputies) of these universities, who are considered to have the broadest knowledge about phenomena directly related to the surveyed entities’ finance and account- ing policies. Findings: Based on the results of the research, the depreciation approaches applied in public universities in Poland have been identified. Legal regulations relating to the man- agement of these fixed assets, which are important for implementing university tasks (i.e., necessary for research and education at the highest possible level), have also been estab- lished. The heterogeneity of the approaches leads to the lack of comparability of financial statements in this uniform group of public universities. Consequently, the identified nonuniform solutions affect the level of costs determined by universities while implementing tasks. Practical implications: The findings are important for university accountants (bursars) since they present them with solutions that can be applied in practice while pointing to the consequences of these different approaches. Originality/value: The principal cognitive value of the findings is the provision of empiri- cal arguments revealing the diversity of depreciation methods among units from the same sector of the economy – classical universities in Poland. At the same time, one of the sources of the problem of limited comparability of their financial results was indicated.

Analysis of fixed assets depreciation management of enterprises under the background of Digitalization

Based on the in-depth implementation of the strategy of "network power", the Internet plus thinking has been integrated into every field of social construction, especially in the field of financial management, which has provided great convenience for the depreciation management of fixed assets, and also made depreciation more and more important. Based on the digital background, this paper analyzes the problems existing in the depreciation of fixed assets in China from the aspects of acquisition, maintenance, treatment and management of fixed assets. At the same time, in order to improve the quality of fixed assets depreciation management under the background of digitization, enterprises need to scientifically select depreciation methods for digital application in fixed assets management based on conditional support, optimize fixed assets management methods with digitalization, strengthen the skills training of fixed assets management personnel, encourage enterprises to reasonably avoid taxes, and increase the management of fixed assets depreciation by the society The supervision strength.

Perbandingan Penggunaan Straight Line Method Dan Double Declining Balance Method Pada Aset PT. Delimas Lestari Jaya

PT. Delimas Lestari Jaya As one of the companies engaged in general trading and services of construction and Real Estate category. Assets remain instrumental in the operational activities of a company. Therefore, there needs to be appropriate management of fixed assets to be utilized according to the needs of the company. Generate different depreciation loads. Depreciation of fixed assets is calculated since the operation month or the month of fixed asset acquisition. Likewise if using depreciation. The purpose of this research is to know the depreciation of fixed assets according to PSAK No. 16, to determine the value of depreciation of fixed assets when using other depreciation methods, and to determine the company's management policy on the fixed asset treatment it has, and to compare depreciation load result between A straight line method and a declining balance method.

Issues in selecting profitability indicators for the evaluation of corporate financial performance

The article analyses the selection of profitability indicators for the evaluation of corporate financial performance. Both theory and practice, address a variety of profitability indicators, therefore, it is essential to understand the possibilities of using the information they provide, as well as to be able to identify potential reasons of indicator value deviations, and to assess the conditions causing the analysis performed based on these indicators to provide incomplete or unreliable information. The aim of the study is to analyse the main profitability indicators, their potential disadvantages, and possible issues in the analysis and interpretation of these indicators. Methods of logical and comparative analysis of the scientific literature, synthesis and generalisation, statistical data analysis and interpretation were used in this article. The results of the analysis show that there is no universal profitability indicator, that would cover all areas of company performance, because profitability indicators’ reliability, as well as objectivity of comparison to other entities, are influenced by national accounting standards, different prime cost calculation methods, long-term assets depreciation methods, reserve assessment, and other methods.

Impact of Depreciation Deduction Calculation Method on Financial Soundness Improvement of Economic Agents

The purpose of this paper is to prepare suggestions on the use of capital depreciation methods as the key tool of industrial enterprise and organization financial soundness improvement that provides the gained profit increase, and thus the capital position.The paper solves the following issues: 1) In the result of comparative analysis of specific features, advantages and disadvantages of depreciation accrual methods, indices of average annual manufacturing capacity actual employment in the context of the most important types of output industrial products it was concluded that the majority of such methods (except the method for depreciation accrual in proportion to the gross output) doesn’t consider the actual load of process equipment; 2) the methodological approach to modification of average annual manufacturing capacity actual employment was substantiated by introducing the calculation formula and the coefficient of average annual manufacturing capacity actual employment; 3) calculations on annual 2016 and 2017 returns were carried out for several economic activities in order to assess product cost reduction (growth of profits) due to the proposed methodological approach.