AMORTIZATION METHODS OF FIXED ASSETS AND THEIR IMPLICATIONS ON THE RESULT OF THE EXERCISE

Abstract

In the context of the market economy, a company can obtain remarkable results, in the conditions of competition, only if the finished products obtained, the works executed and the services provided, are qualitatively superior and at an acceptable price. Obtaining high quality goods involves good quality raw materials, efficient means of production and a highly qualified workforce. Their acquisition involved a financial effort for each economic unit and therefore the acquisition operations must be analyzed very well before being performed, calculating the financial effects they involve, for the entire period of depreciation of fixed assets. Implicitly, the calculation and recording of amortization of fixed assets is an approach of maximum importance because it influences the cost of production obtained, being made with the help of accounting records from each entity. Thus, amortization is an extremely sensitive topic for asset accounting. The main question that arises is related to the most efficient method of amortization.