Audit and economical analysis

Amortization and depreciation costs analysis

Amortization and depreciation costs are the main concepts of fixed assets and non-material assets. To know the economic content of a link it is necessary to know the classification of the following concepts.

The carrying amount of an asset is the carrying amount of an asset after deducting any accumulated amortization and accumulated impairment losses.

An asset's value is the fair value of the consideration paid or the initial recognition of the asset's value in cash or cash equivalents equivalent to that acquired during the acquisition or construction of the asset.

The aggregate of the asset's depreciation is the value of the asset's fair value at the discretion of the asset or the value at the discretion of the asset.

Depreciation of an asset is the systematic outflow of an asset's asset value over its useful life.

The main assets are the tangible assets intended for:

(a) intended to produce or deliver products, or to provide services or to lease or to use for administrative purposes; and

(b) it is expected to be used over a period of more than one period.

The recoverable amount of an asset is higher than its recoverable amount: its fair value less costs to sell and value in use.

The carrying amount of an asset is the estimated value of an asset that is offset by an outflow of an asset at the end of an asset's life-to-good life, in the case of an outflow of an asset.

The useful life of an asset is:

(a) the period for which an asset is expected to be eligible for use by a business entity; or

(b) the amount of production (volume) or similar units expected to be recovered from the asset by the business entity.

The analysis focuses on the analysis of depreciation charges on the composition of fixed assets and non-material assets, and the factors affecting amortization.

Depreciation charges and depreciation charges will vary with the change in the value of fixed assets and non-material assets and amortization rates.

Amortization capacity of fixed assets and non-material assets of the product is calculated based on the following model

MA = Ax / Mx

Bundle: Depreciation capacity of MA; Ax-depreciation costs;

Mx-product production cost

Depreciation costs are calculated according to the following models: