Development of the Depreciation Accounting Methodology

The objective of the study is to identify opportunities to use historical experience to improve the quality of accounting, analytical and control support for the management of internal financial resources used for the reproduction of noncurrent assets. The relevance of the research is determined by the need to develop accounting and control of the use of depreciation to finance the investment processes of companies In the course of the conducted research the influence was found out regarding various approaches to establishing the essence of depreciation on the modern methodology of accounting and tax accounting. The harmonization of various depreciation concepts is aimed at stimulating the use of depreciation charges to finance investments in non-current assets that ensure the technological sovereignty of the country. The directions of improvement of depreciation policy are defined; a set of proposals has been advanced for the development of accounting and reporting, including accounting models for reflecting the facts of economic life in the off-balance sheet or management accounting system. The approaches to the formation of the depreciation policy of the company depending on the life cycle of the organization are presented. The possibility of mobilising depreciation charges for the implementation of large projects of integrated companies is substantiated. The findings of the research can be valuable for developing a management accounting system, as well as improving internal and external reporting on the effective use of depreciation to finance capital investments.

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