The financial calculations of any normally operating enterprise are always present depreciation.There is a constant deterioration of the equipment, buildings, automotive equipment, etc.The offset costs that will certainly arise in the reduction of fixed assets, where to get the funds to carry out the plan and other types of repairs?Here we come to the aid depreciation, specially designed for such cases.
This type of contributions is very important for the company and is included in the cost of production.As a result, the company gets a certain amount that can be spent on capital or other types of repairs.All repairs are aimed at restoring the equipment or modernization of fixed assets or any part thereof.Expressed in terms of money depreciation of fixed assets is called "depreciation".Fixed assets, incorporated in the design of the company on fixed assets, should be enough for the purchase of all necessary equipment and construction of buildings and communications.
practice of depreciation is widespread throughout the world.They are made of specially designed for the standards that take into account the value of fixed assets and monthly depreciation.
established depreciation rates can not only take into account the value of fixed assets retired from service, but also to calculate the cost of production.The last parameter is very important for any company, it is involved in many calculations.
correctly calculate the depreciation of fixed assets will ensure the restoration.They also affect the profitability of production.Depreciation continues to be levied during the period of preservation of the equipment or when it stops associated with a lack of orders or for any other reason.Depreciation terminated in the period of reconstruction of fixed assets, with a full stop of the equipment.
Amortization policy of any business is very important for proper operation of products on the market.It affects the company held depreciation and affects the organization of repair.Moreover, it has a direct impact on the competitiveness of products and the profitability of the enterprise.Amortization policy aimed at lowering the depreciation may lead to a full stop of the enterprise.This will happen because of the lack of funds for repairs.At the same time dangerous and overpriced, as in this case, it will increase production costs and, as a result, will change its competitiveness on the market.This can lead to loss of revenue by reducing the number of products sold, which also negatively affect the entire enterprise.
The financial instruments of any entity present and annual depreciation charges, which are calculated based on the maximum amount of product that is released this equipment during the period, and the cost of the equipment.This indicator helps to adjust the monthly depreciation.
