TAX ASPECTS OF THE DEPRECIATION POLICY OF THE ENTERPRISE

Abstract

Improving the depreciation policy of enterprises should contribute to the development of the economy as a whole. Although International Accounting Standards were used as a basis for writing Accounting Regulations (Standards) and the adopted Tax Code of Ukraine proclaimed the convergence of tax and financial accounting, there are still a number of issues regarding the formation and implementation of depreciation policy that need to be addressed. The article considers the essence of depreciation and explores scientific approaches to the definition of "depreciation". The own definition of depreciation is offered. The main tax aspects of the procedure for depreciation of those fixed assets that are transferred to the reconstruction, modernization, completion, equipment or conservation. Depreciation tax differences, according to the Tax Code of Ukraine, adjust the financial result of the enterprise both in the direction of increase and in the direction of decrease in profit for taxation. Therefore, the main purpose of adjustments is to remove depreciation from the financial result. In accounting, depreciation is the cost of the enterprise. They affect the formation of the accounting financial result. Therefore, to adjust for accounting depreciation, you need to increase the financial results and instead of accounting to include tax depreciation, calculated based on the rules of the TCU. Depreciation is accrued at the enterprise on all fixed assets, regardless of where the non-current assets are located: in operation or transferred to reconstruction, modernization or conservation. The paper notes that the depreciation policy of the enterprise is a component of its accounting policy. As a result of the study, a proposal was made to regulate the issue of decommissioning of fixed assets for the period of their repair, reconstruction, modernization and to identify aspects of such lenses in the order of accounting policy for income tax purposes.