Considerations on the criteria, parameters and tax implications of depreciation

• Main Authors: Dorel Mateş, Ionel Bostan, Veronica Grosu, Virag Nicolae Paul
• Format: Article
• Language: English
• Published: Vasile Goldis University Press 2012-01-01
• Series: Studia Universitatis Vasile Goldis Arad, Seria Stiinte Economice
• Subjects: Assets; depreciation; tax
• Online Access: http://www.uvvg.ro/studiaeconomia/images/2012/p1/3.%20Dorel%20Mates,%20Ionel%20Bostan,%20Veronica%20Grosu,%20Virag%20Nicolae%20Paul%20-%20CONSIDERATIONS%20ON%20THE%20CRITERIA.pdf

The literature presents several methods of depreciation. In Romania, not all depreciation methods are recommended by existing legislation. In this paper we propose to address through the income tax three methods of depreciation of assets, which are recommended by our country's legislation, and to highlight the tax benefits of their application within the entities. In the first part we propose to define what are the criteria for evaluating of a assets depreciation and accounting parameters of the assets depreciation. In the second part of the paper will be presented depreciation methods as linear, diminishing and accelerating with the tax implications.