Depreciation of Enterprise Assets in Wartime

Abstract

The war causes dangerous and unpredictable conditions for using property, the impossibility of determining the period of its useful operation. The risks of losing property are considerable. In Ukraine, the property of agricultural enterprises is primarily uninsured. The only way out is the introduction of accelerated depreciation, which will adequately reflect the costs of the enterprise, associated with hostilities in the regions of Ukraine. The purpose of the article is to determine the methodical approaches and areas of regulatory and methodological support for changes in accounting policies for depreciation in the accelerated mode.The international and national methodology of depreciation calculation was analyzed. The legislative and normative changes for accounting policy of enterprises in terms of accelerated depreciation of fixed assets and clarifying the term of their useful life were substantiated. The mechanism of application of the method of accelerated reduction of the residual value of fixed assets was revealed. The necessity of the introduction of the regional policy coordinated with bodies of the State tax service concerning the application of the accelerated rates of depreciation in the territories where active military actions take place was proved. Although the national accounting standard 7 “Fixed assets” provides the possibility of doubling the depreciation rate and revising the useful life of fixed assets, it does not clarify the depreciation policy of wartime. Therefore, introducing the concept of “martial law” in national and international accounting standards is of paramount importance at the legislative level. The problem of repairing damaged property is exacerbated by the weakness of the market segment by its insurance.