PECULIARITIES OF CHOOSING THE OPTIMAL METHOD OF CALCULATING DEPRECIATION

Abstract

Introduction. The article deals with the main critical issues of choosing the method to calculate depreciation of fixed assets in agriculture. The purpose of the article is to substantiate theoretical and methodological provisions for choosing the optimal method to calculate depreciation of fixed assets, as well as to develop applied recommendations for their implementation in enterprises. Methods. During the research, we used the following research methods: induction, deduction, observation, comparison, systematization, generalization, as well as the method of expert assessment – to develop the concept of establishing techniques to calculate depreciation of fixed assets. Results. The article has considered dependence of methods of depreciation calculation on the financial result of economic activity of the enterprise for a specific period. It traces how, in practical terms, the choice of a cost-effective method of calculating depreciation depends on the usefulness; expected size of production (works, services); the size of the liquidation value; inflation and scientific and technological progress. A short description of depreciation methods is offered in the article; their advantages and disadvantages are considered and recommendations for their application are given. Discussions. Further research will focus on improving calculation of fixed assets in order to increase the efficiency of accounting and economic information.