Home  Journals  Economic Analysis: Theory and Practice  35(386) - 2014 September

The impact of the calculating depreciation methods on the value of free funds

Available online: 19 September 2014

Subject Heading: CASH FLOW ANALYSIS

JEL Classification: 

Pages: 58-64

The article deals with the comparative analysis of the impact of depreciation methods on the value of free cash flow, including the use of leasing financing. Calculations showed that the increase in free cash flow is only possible in the case of investing significant funds in the main assets of the company. In other cases, the possibility to save on tax on profit and increase free cash flow does not exist, because its size is negligible, and the difference in the tax and accounting accounts greatly increases the complexity of the latter.

Keywords: depreciation,methods, leasing, free cash flow, tax saving

References:

1. Bobryshev A.N., Kostyukova E.I., Kostyukov K.I. Upravlencheskii uchet amortizatsionnykh resursov [Management accounting of depreciation resources].Finansovyivestnik: finansy, nalogi, strakhovanie, bukhgalterskiiuchet – Financial review: finance, tax, insurance, accounting,2010, no. 3, pp. 18–23.
2. LaskinaL.Yu. Amortizatsiya kak odin iz faktorov operatsionnogo leveridzha [Depreciation as one of the factors of operating leverage].Ekonomicheskii analiz: teoriyaipraktika – Economic analysis: theory and practice, 2012, no. 31,pp. 54–58.
3. Chachina E.G. Otsenka riska pri opredelenii sovremennoi stoimosti denezhnykh potokov[Risk assessment in determining the current value of cash flows].Molodoiuchenyi – Young scientist, 2012, no. 4, pp. 181–184.

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ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

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