Method of Component Depreciation of Fixed Assetsts and Its Comparision with Traditional Methods

This contribution analyzes, based on specific examples, accounting procedures and tax implications of depreciation of tangible fixed assets. It compares the component method, which has recently appeared in the Czech legal regulations, with the traditional methods. To compare the effects that the traditional methods have on profit or loss, or rather on the tax base, also the generation of provisions is used. The use of component depreciation is governed solely by the accounting regulations while the Income Tax Act has not been changed in this respect. Profit of loss has to be adjusted by a difference amount between accounting depreciation and tax depreciation in tax return.


Issue Date:
Sep 30 2010
Publication Type:
Journal Article
DOI and Other Identifiers:
ISSN 1804-1930 (Other)
PURL Identifier:
http://purl.umn.edu/96874
Published in:
AGRIS on-line Papers in Economics and Informatics, Volume 02, Number 3
Page range:
37-46
Total Pages:
10
JEL Codes:
GA; IN
Series Statement:
2010
3




 Record created 2017-04-01, last modified 2017-08-25

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