Authors: R. Rak, PhD in Economics, Ass. Prof., ORCID ID: 0000-0002-9526-1734
Taras Shevchenko National University of Kyiv, Kyiv, Ukraine
T. Mokhnach, Senior Associate in the Audit Department, ORCID ID: 0000-0003-1177-3140
Audit firm “PricewaterhouseCoopers (Audit)” LLC, Kyiv, Ukraine

Annotation: Depreciation policy is one of the main components of the state economic policy. The specifics of its implementation depend on the general state of the country’s economy development and the main tasks set for the nation or an individual enterprise. Depreciation policy is closely related to the
tax system of the state, the procedure for accounting for non-current assets, and pricing. In contrast, depreciation deductions are an essential source
of self-financing for enterprises. Therefore, the depreciation policy is subject to special attention from the state and each enterprise. However, in
Ukraine, unlike most developed countries, the main directions of the depreciation policy of enterprises are not adequate.

The article considers the development and operating patterns of depreciation policy of Ukrainian enterprises. Depreciation methods according to international and national
standards have been studied. The ascertained components of the depreciation policy included the calculation of depreciation rates and amounts;
distribution of accrued depreciation on separate analytical expense accounts; determination of the liquidation value of the object of fixed assets and
other non-current assets, selection of the period of useful use of the object of fixed assets and other non-current assets, and others. The article
studies the specifics of the depreciation policy of enterprises in Eastern Europe and G7 countries and, by comparing the depreciation policy of
domestic enterprises and those in the countries under consideration, highlights appropriate ways to improve the depreciation policy for Ukrainian
companies. The conclusion outlines proposals to improve the efficacy of domestic depreciation policy through applying international expertise and
measures the potential impact of the proposed changes on the depreciation policy and economic efficiency of domestic enterprises.

Keywords: depreciation; non-current assets; methods of charge of depreciation; accumulated depreciation; useful life.

Received: 23/06/2022
1st Revision: 08/07/2022
Accepted: 17/07/2022

References (in Latin): Translation / Transliteration / Transcription

1. Bradul O. M., Burkova L.A. & Shepelіuk V. A (2021). Podatkovi aspekty amortyzatsiynoyi polityky pidpryyemstva. [Tax aspects of the
depreciation policy of the enterprise]. Vcheni zapysky Universytetu “KROK”, (3 (63)), 61-67. (in Ukrainian)
2. Lyubar O.O.(2017). Amortyzatsiyna polityka pidpryyemstva yak nevid’yemna skladova yoho oblikovoyi polityky [Depreciation policy
of an enterprise as an integral part of its accounting policy] / Efektyvna ekonomika №3. URL:
?op=1&z=5484 (in Ukrainian)
3. Mizhnarodnyy standart bukhhalters’koho obliku 16 (MSBO 16) [International Accounting Standard 16 “Fixed Assets”]. Osnovni
zasoby, Standart Rady z Mizhnarodnykh standartiv bukhhalters’koho obliku URL: (in
4. Mizhnarodnyy standart bukhhalters’koho obliku 38 (MSBO 38) [International Accounting Standard 38 “Intangible Assets”].
Nematerial’ni aktyvy, Standart Rady z Mizhnarodnykh standartiv bukhhalters’koho obliku URL: (in Ukrainian)
5. Podatkovyy kodeks Ukrayiny, Kodeks Ukrayiny № 2755-VI (2022) [Tax Code of Ukraine №2755-VI]. URL: (in Ukrainian)
6. Pro zatverdzhennya Natsinalnoho polozhennya (standarty) bukhhalters’koho obliku 7 “Osnovni zasoby”, Nakaz Ministerstva finansiv
Ukrayiny № 92 (2022) [Fixed assets: accounting regulation (standard) 7, approved by the order of the Ministry of Finance of Ukraine № 92].
URL: (in Ukrainian)
7. Semyon V.S. (2014) Oblikova polityka pidpryyemstva: vitchyznyanyy i zarubizhnyy dosvid [Accounting policy of the enterprise:
domestic and foreign experience ] Ekonomika i orhanizatsiya upravlinnya. (3-4), 243-248. (in Ukrainian)
8. Shapoval V.M., Herasymenko T.V. & Bondarenko L.A. (2019). Amortyzatsiyna polityka: sutnist, problemy, napryamy
vdoskonalennya. [The amortization policy: the nature, problems, ways of improvement]. URL: (in Ukrainian)
9. Act of the Czech National Council on Income Taxes, Act No. 586/1992 Coll. (1992) (Czech Republic). URL: (in Czech)
10. Act On Accounting, Hungarian Ministry of Finance (2000) (Hungary). URL: (in Hungarian)
11. Act on Special Measures Concerning Taxation, Act No. 26 (1957) (Japan). URL: (in English)
12. German Commercial Law (Germany). URL: (in English)
13. Income Tax Act of Canada (1985) (Canada). URL: (in English)
14. Income Tax Act of United Kingdom (United Kingdom). (2007 c. 3). URL: (in English)
15. Modified Accelerated Cost Recovery System – MACRS.(USA). URL: (in English)
16. Overview of the French tax system, French Ministry of Economy (2016) (France). URL: files/media/1_metier/5_international/french_tax_system.pdf (in English)