ACCOUNTING AND FISCAL POLICIES REGARDING THE TREATMENT OF ASSETS’ DEPRECIATION – NATIONAL AND INTERNATIONAL
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Authors:
• Professor Mariana MAN, Ph.D., email: man_mariana2006@yahoo.com, Afiliation: University of Petroşani
• Professor Ioan C-tin. DIMA, Ph.D., Afiliation: “Valahia” University of Târgovişte
• Drd. Valentina MINEA, Afiliation: “Valahia” University of TârgoviştePages:
• 36|52 -
Keywords: accounting amortization, fiscal amortization, adjustment, depreciation, value loss, international accounting standard
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Abstract:
A large part of fixed assets depreciate with time, a fact that requires their replacement, usually, through amortization. Amortization appears as a value equivalent of the irreversible deterioration of an asset as a result of its functioning, of the effects of natural factors, of technical progress and of other causes. A part of the assets, whose use is temporally unlimited, as, for example, lands and financial investments, is not amortized; a possible depreciation of them is covered through adjustments (provisions). Accordingly, maintenance self-financing has an important consequence upon the performance of an economic entity; it includes amortization that provides the renewal of the fixed assets that are out of use and the depreciation or loss of value adjustments of active elements and provisions.
