Depreciation Policy in the Context of Production Cost Optimisation: Accounting Aspect

Abstract

Accounting and analytical support of the depreciation process is a key tool for managing the financial activities of enterprises. The choice of depreciation methods and their optimisation are crucial for the formation of costs for the restoration of fixed assets, determination of production costs and maintenance of investment activity. The study focuses on improving the accounting and information support to justify the depreciation policy that will contribute to the economic efficiency of enterprises. The purpose of the study is to analyse existing approaches to accounting for depreciation expenses, the choice of depreciation methods and their optimisation to ensure efficient management of fixed assets. The role of accounting data in making management decisions aimed at modernising production facilities and increasing the competitiveness of enterprises is studied.

The methodological basis of the work is a comparative analysis of accounting practices at the national and international levels, statistical analysis of economic indicators and modelling the impact of depreciation expenses on the financial stability of enterprises. Correlation analysis is used to determine the relationship between the level of depreciation charges and the volume of investments in modernisation.

The results of the study show that a sound depreciation policy contributes not only to reducing costs but also to increasing the investment attractiveness of enterprises. It has been found that the imperfection of the current legislation in Ukraine limits the opportunities for innovative development and modernisation of production. It is recommended to ensure flexibility in accounting for depreciation expenses, taking into account the specifics of industries and current economic challenges.

The conclusions emphasise the need to adapt the depreciation policy to market conditions, integrate international experience and improve accounting and analytical tools to increase the efficiency of use of fixed assets of enterprises.