The Depreciation Impact of the Profit and Activity Development Carried out by an Economic Operator

Dobrota, Gabriela and Chirculescu, Felicia Maria (2008): The Depreciation Impact of the Profit and Activity Development Carried out by an Economic Operator. Published in: Economy magazine No. 1 (15 February 2008): pp. 128-130.

Abstract

It's interesting how an economic operator decides to depreciate its depreciable fixed assets, because depreciation is an expense input from the taxable profit in accordance with the laws in force, thus contributing to diminishing the operating profit/loss and implicitly the gross and net earnings, without real impact on profitability and especially without any impact on the self-funding capacity. But the impact given by the depreciation expenses may be influenced by the organization policy in the field of depreciation and by the fiscal laws.

• Item Type: MPRA Paper
• Language: English
• Keywords: depreciable fixed assets, profit, loss, fiscal law
• Subjects: L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E26 - Informal Economy ; Underground Economy; P - Economic Systems > P1 - Capitalist Systems > P16 - Political Economy

References

Dobrota G. - Gestiunea financiara a intreprinderii, Editura Spirit Romanesc, Craiova, 2003

Dragota V - Abordari practice in finantele firmei, Editura Irecson, Bucuresti, 2007

Law 571/2003 - The Fiscal Code