Treatment of the elements of depreciation of fixed assets in the Accounting Policy

Author:

Zaslavskaya Irina

Abstract

This article examines the issues involved in treatment of the elements of depreciation of fixed assets in the Accounting Policy of transport companies. The cost of fixed assets has a significant weight in the balance sheet of transport organizations. The reliability of the assessment of this type of property depends on the correct calculation of depreciation and the choice of its elements. The use in calculations of liquidation and fair value influenced the amount of book value (formerly “written down”), and in general the amount of balance sheet assets. The article analyzes accounting changes with respect to depreciation due to the enactment of the FSBU (Federal Accounting Standard) 6/2020, and substantiates the need to develop new forms of accounting documents to reflect the elements of depreciation on receipt of fixed assets as well as to record information about changes in each element of depreciation (useful life, residual value, the method of depreciation) for each year during the useful life in connection with the requirement FSBU 6/2020. The author identifies the relationship between the method of establishing a useful life and the method of depreciation and examines the reflection of sufficient information in the Accounting Policy on the elements of depreciation.

Publisher

EDP Sciences

Subject

General Medicine

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