SHS Web of Conf.
Volume 92, 2021The 20th International Scientific Conference Globalization and its Socio-Economic Consequences 2020
|Number of page(s)||7|
|Section||Behavioral Economics and Decision-Making|
|Published online||13 January 2021|
Accounting and tax accounting for the accrual of depreciation of fixed assets and ways of convergence
Azerbaijan State University of Economics (UNEC), Faculty of “Finance and accounting”, Department of “Accounting and Audit”, Istiqlaliyyat street 6, AZ1001, Baku, Republic of Azerbaijan
* Corresponding author: firstname.lastname@example.org
Research background: As you know, one of the main accounting principles that determine the methodology for assessing the facts of economic life is business continuity. Compliance with this principle by commercial organizations is associated with many factors, one of which is their ability to provide funding for the continuation and development of activities. Carrying out activities for the acquisition of new or modernization and technical re-equipment of existing fixed assets implies one-time cash costs. That is why one of the main sources of financing for updating and modernization and technical re-equipment of fixed assets is depreciation deductions. Depreciation deductions for fixed assets in accounting and tax accounting are calculated differently, which determines the relevance and need for a clear study of accounting procedures in the field of their accounting.
Purpose of the article: The purpose of the article is to conduct a comparative analysis of the procedure for calculating and accounting for depreciation deductions for fixed assets in accounting and tax accounting and to study ways to bring them closer together.
Methods: Methods of comparative analysis, induction and deduction were used in the article.
Findings & Value added: The current rules for calculating depreciation deductions for fixed assets and their reflection in accounting and reporting do not provide a reliable reflection of the facts of economic activity of the enterprise. And this in turn leads to a misunderstanding by the respective users of the contents of the statement of financial position and the statement of profit or loss and other comprehensive income and the essence of depreciation itself.
Key words: accounting / fixed assets / depreciation / depreciation methods
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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