On the one hand, the increased cost and production costs are a direct opportunity to free up funds for a complete replacement of equipment with more modern analogues. There is one important nuance: in the process of selling products, you will have to increase the cost of the finished product during its subsequent sale.
A variety of methods are used to calculate accelerated depreciation:
discrete depreciation (or write-off method, depending on how many years the equipment will be in operation);
decreasing balance;
degressive geometric depreciation.
Application of the above methods can have the following consequences. After acquiring specific objects, in subsequent years it will be necessary to reduce the amount of deductions. Maintenance costs will increase.
The accelerated depreciation method can be applied in the field of leasing, namely, to specific leased assets. In this case, the multiplying factor cannot be higher than three. The use of accelerated depreciation makes it possible to reduce the taxable base for two types of taxes - on property and on profit. In the first case, the residual value will decrease much faster. In the second case, the effect will be applied with only one condition - the previously set lease discount must be kept in the active mode.
When the lease agreement for the leased objects expires, the lessee can redeem the object at a small residual value. The benefit is that the person who makes the deal with the leasing company has to pay a small balance at the end of the term. Today, the accelerated depreciation method is used not only in the field of leasing, but also in the field of small and medium-sized businesses in order to stimulate the pace of development of industrial sectors.
More here - https://en.wikipedia.org/wiki/Accelerated_depreciation
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