Entrepreneurial learning, Vol. 2 No. 2, 2012.
Original scientific paper
Depreciation Accounting Policy as a Function of Business Decision Making of the Company
Toni Miljak
; Sveučilište u Splitu, Sveučilišni odjel za stručne studije, Split, Hrvatska
Jasenka Bubić
; Sveučilište u Splitu, Sveučilišni odjel za stručne studije, Split, Hrvatska
Maja Kitić
; Sveučilište u Splitu, Sveučilišni odjel za stručne studije, Split, Hrvatska
Abstract
Long term assets is consumed with time. Depreciation has a basic purpose of allocation of procurement costs. Accounting standards define ways and methods of calculating depreciation of long term assets. The area of tax determination is regulated by the Law on Profit Tax (Official Gazette 22/12) which also provides for depreciation life of fixed assets and the method of calculating depreciation in the Republic of Croatia. The company is essential with which method of calculation is performed spending its resources since the amount amortized during the year affects on the expenditure the company and therefore on the financial result. The aim of this paper is to present and analyze different methods of depreciation of fixed assets in the Republic of Croatia and their mutual comparison in relation to allocation of costs and financial results of entreprenueurs. In connection with the foregoing, the goal is to show the interdependence of accounting policy on depreciation and the company’s business decision-making.
Keywords
depreciation; financial results; fixed assets; methods of calculating depreciation; the business decision-making of the company
Hrčak ID:
130260
URI
Publication date:
1.12.2012.
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