USE OF INDICATORS OF THE REPRODUCTION OF FIXED ASSETS IN ASSESSING THE EFFECTIVENESS OF THEIR USE

Abstract

Depreciation of fixed assets is a measure that is used to estimate the technical condition of equipment in enterprises, while amortization is a mechanism for transferring the value of fixed assets to the value of the product produced in order to further reproduce it. Very often, both concepts are replaced, while depreciation is not reflected in the credentials, does not have a value expression and does not affect the financial statements, and depreciation is a indicator that reduces the initial value of fixed assets, a book value is formed, which is used to calculate equipment efficiency indicators at both the enterprise and industry levels. Amortization is also used to estimate the efficiency of using investments, the payback period of fixed assets, therefore it is one of the key financial indicators. A more precise meaning is needed to justify the conclusions and proposals on calculated asset utilization rates. The article presents historical aspects of depreciation as an economic category, statistics on the level of depreciation of fixed assets of the Udmurt Republic. It is also proposed to supplement the theoretical mechanism for assessing the effectiveness of fixed assets with new indicators, since the assessment of the reproduction of fixed assets directly depends on the quality of the information used.