Methodological Positions for Amortization of Fixed Assets and their Effect on Tax Burden of Agricultural Organizations

Abstract

The evolutionary leap from amortization as a way of collecting money to amortization as a factor of profit formation is of interest, due to the fact that it allows us to formulate one of the key principles relating to this concept: « amortization – is gradual process of transferring value of fixed assets and intangible assets at cost». And, therefore, amortization has an impact on the organization tax burden. The article explains complex issues related to the understanding of the problem of amortization for certain fixed asset items; considers methods of its calculation in the financial accounting and the impact of amortization costs on an amount of property tax and on profit; focuses on possible ways of optimizing the tax burden.