Theoretical principles of amortization policy: the state of the problem and directions for improvement
The article is devoted to the theoretical and methodological principles of amortization policy of the state and the enterprise. The question of the role of the state in amortization policy of the enterprise is considered. It is revealed that the genesis of amortization policy in Ukraine has provided...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Zhytomyr Polytechnic State University
2022-06-01
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| Series: | Економіка, управління та адміністрування |
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| Online Access: | http://ema.ztu.edu.ua/article/view/261840 |
| _version_ | 1797905097560162304 |
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| author | О.М. V.V. |
| author_facet | О.М. V.V. |
| author_sort | О.М. |
| collection | DOAJ |
| description | The article is devoted to the theoretical and methodological principles of amortization policy of the state and the enterprise. The question of the role of the state in amortization policy of the enterprise is considered. It is revealed that the genesis of amortization policy in Ukraine has provided a certain level of independence of enterprises in matters of its formation. However, the current approaches to amortization are not systemic and de facto the state influences the formation of the amortization fund only at the initial stage through the determination of amortization amounts. As a result, the enterprises do not form real amortization funds as part of reserves. It is concluded that the amortization policy is an integral part of the state investment policy, so the state should use appropriate tools to properly ensure its implementation at the micro and macro levels. Its purpose is to form an amortization policy of an individual enterprise to effectively manage the process of updating fixed assets, the introduction of scientific developments and new technologies in production, etc. On the basis of the critical analysis of the Concept of amortization policy operating in Ukraine, it was proposed to develop its separate elements by introducing a mechanism for regulating the formation of an enterprise's amortization fund. Such a mechanism involves the use of direct regulation tools, among which the key ones are: prohibition of the use of funds accumulated in the enterprise's amortization fund for other purposes; determination of the list of directions for investing funds accumulated by enterprises in amortization funds until they are used for their intended purpose in order to compensate for lost benefits for the period of keeping financial resources in reserves. This, in turn, requires the transformation of the reflection in accounting and statistics of the processes of accrual and use of amortization charges; appointment of a controlling institution in compliance with the targeted use of funds from the amortization fund; consolidation of the proposed configurations in the legislation and regulations of different levels. |
| first_indexed | 2024-04-10T09:59:39Z |
| format | Article |
| id | doaj.art-19116b533b264049a23c24d15f222a5f |
| institution | Directory Open Access Journal |
| issn | 2664-245X 2664-2468 |
| language | English |
| last_indexed | 2024-04-10T09:59:39Z |
| publishDate | 2022-06-01 |
| publisher | Zhytomyr Polytechnic State University |
| record_format | Article |
| series | Економіка, управління та адміністрування |
| spelling | doaj.art-19116b533b264049a23c24d15f222a5f2023-02-16T09:22:40ZengZhytomyr Polytechnic State UniversityЕкономіка, управління та адміністрування2664-245X2664-24682022-06-012100768210.26642/ema-2022-2(100)-76-82Theoretical principles of amortization policy: the state of the problem and directions for improvementО.М. 0https://orcid.org/0000-0002-5351-5679V.V. 1https://orcid.org/0000-0003-0491-4136PetrukKhvistThe article is devoted to the theoretical and methodological principles of amortization policy of the state and the enterprise. The question of the role of the state in amortization policy of the enterprise is considered. It is revealed that the genesis of amortization policy in Ukraine has provided a certain level of independence of enterprises in matters of its formation. However, the current approaches to amortization are not systemic and de facto the state influences the formation of the amortization fund only at the initial stage through the determination of amortization amounts. As a result, the enterprises do not form real amortization funds as part of reserves. It is concluded that the amortization policy is an integral part of the state investment policy, so the state should use appropriate tools to properly ensure its implementation at the micro and macro levels. Its purpose is to form an amortization policy of an individual enterprise to effectively manage the process of updating fixed assets, the introduction of scientific developments and new technologies in production, etc. On the basis of the critical analysis of the Concept of amortization policy operating in Ukraine, it was proposed to develop its separate elements by introducing a mechanism for regulating the formation of an enterprise's amortization fund. Such a mechanism involves the use of direct regulation tools, among which the key ones are: prohibition of the use of funds accumulated in the enterprise's amortization fund for other purposes; determination of the list of directions for investing funds accumulated by enterprises in amortization funds until they are used for their intended purpose in order to compensate for lost benefits for the period of keeping financial resources in reserves. This, in turn, requires the transformation of the reflection in accounting and statistics of the processes of accrual and use of amortization charges; appointment of a controlling institution in compliance with the targeted use of funds from the amortization fund; consolidation of the proposed configurations in the legislation and regulations of different levels.http://ema.ztu.edu.ua/article/view/261840amortization policythe concept of amortization policyreproductionfixed assetsinvestment |
| spellingShingle | О.М. V.V. Theoretical principles of amortization policy: the state of the problem and directions for improvement Економіка, управління та адміністрування amortization policy the concept of amortization policy reproduction fixed assets investment |
| title | Theoretical principles of amortization policy: the state of the problem and directions for improvement |
| title_full | Theoretical principles of amortization policy: the state of the problem and directions for improvement |
| title_fullStr | Theoretical principles of amortization policy: the state of the problem and directions for improvement |
| title_full_unstemmed | Theoretical principles of amortization policy: the state of the problem and directions for improvement |
| title_short | Theoretical principles of amortization policy: the state of the problem and directions for improvement |
| title_sort | theoretical principles of amortization policy the state of the problem and directions for improvement |
| topic | amortization policy the concept of amortization policy reproduction fixed assets investment |
| url | http://ema.ztu.edu.ua/article/view/261840 |
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