№ 9/2019

Fìnansi Ukr. 2019 (9): 94–110https://doi.org/10.33763/finukr2019.09.094

FINANCES OF THE INSTITUTIONAL SECTORS

HOMYN Iryna ¹

¹Ternopil National Economic University
OrcID ID : https://orcid.org/0000-0002-5882-3830

Formation and use of the depreciation resource

It is noted that the term depreciation is known from ancient Roman times. However, just as in antiquity it did not figure as a financial category, it still traditionally looks secondary to its antipode, depreciation of fixed assets, predetermining similarly the attitude towards the formation of this kind of financial resources of simple reproduction of fixed assets. Moreover, these terms are now considered identical, which is even fixed in the current regulatory documentation. Based on a critical analysis of scientific literature from A. Smith and K. Marx with modern inclusive, the origins of this problem are investigated, the importance of which is scientifically and practically confirmed by an analytical interpretation of statistical indicators. It is emphasized that the confusion of these antipode terms, which resulted from “direct linguistic translation into the Ukrainian language without seeking an adequate interpretation” (T. Efimenko, S. Konoplev), weakened control over the targeted use of funds, the source of which was exempt from taxation a part of enterprises' income in the form of depreciation, created opportunities for tax evasion from the part of the profit that is excluded from the tax base in order to create a source of financial resources about a great reproduction of the basic means. To solve this problem, it is proposed to designate the financial resources of simple reproduction of fixed assets with the terminology “depreciation money” and deposit them in domestic banks in separate accounts in hard currency so that the leveling of their purchasing power due to inflation can be avoided. Given the conventional nature of depreciation of fixed assets, it is justified to abandon its routine and time-consuming monthly calculations for each object, which no one pays any attention after, as with the alienation of fixed assets it is necessary to carry out their expert evaluation, which never coincides with the book value of residual value.

Keywords:depreciation, financial resources, simple reproduction, fixed assets

JEL: H12, G18, G28

Homyn I. . Formation and use of the depreciation resource / I. . Homyn // Фінанси України. - 2019. - № 9. - C. 94-110.

Article original in Ukrainian (pp. 94 - 110)

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