depreciation in a certain degree carries out and the stimulating function as provides the fullest use of fixed assets: the more long on time functioning, the more is made production and the more the cost of fixed assets will be transferred. It will allow to reduce their nedoamortization owing to moral iznosa to reduce losses of the enterprise that is very important in the conditions of the market.
The size of the cost postponed for production is determined by accounting estimates: first, the initial cost of fixed assets (the initial cost, the more transferable sum of cost of the main of fund is higher; secondly, standard service life of buildings, constructions, cars and equipment; thirdly, branch specifics of production. In one branches the depreciation share in expenses is one production higher, and in others - below.
The direction of depreciation on expanded reproduction of fixed assets is caused by specifics of its charge and an expenditure: it is charged during all standard service life of fixed assets, and need for its expenditure comes only after their actual leaving. Therefore until replacement of the fixed assets which left operation the added depreciation is temporarily free and can be used as an additional source of expanded production. Besides, use of depreciation on expanded reproduction is promoted by scientific and technical progress as a result of which some types of fixed assets can be reduced the price, more perfect and more productive cars and the equipment become effective.
(and - – the sum of the expenses incurred on acquisition of fixed assets, implementation of capital repairs, reconstruction, modernization and other improvements of fixed assets during the period previous reporting;