Depreciation: how does the method of accrual of depreciation payments affect the financial result of the enterprise

The concept of depreciation is defined as the write-off of the value of a fixed asset as a result of its moral or physical depreciation in order to fully recover its value. In this case, parts of the written-off cost are accumulated and attributed to the cost of the finished product produced by the fixed asset. According to the current legislation, there are currently three methods of calculating depreciation: the linear method, the method of reducing the balance and the method of accrual in proportion to the volume of output. In this scientific work, these methods of depreciation are described and analyzed in detail, as well as the relationship between depreciation and the financial result of the enterprise is prescribed. The authors of the article also emphasize that the choice of the depreciation method is determined by the variety of specifications, spheres and types of activities of economic entities. They allow the company to independently choose a more profitable way of calculating depreciation payments, while not violating the basic economic essence of the operation of the enterprise - achieving maximum profit.