Importance In modern conditions, enterprises need an effective development strategy, including the depreciation policy enabling to mobilize internal financial resources of the enterprise and strengthen its investment activities. The article considers the depreciation policy and its instruments implemented at the enterprise level of the European Union (EU) at the present stage. Objectives The aim of the study is to generalize the specifics of the depreciation policy of the EU enterprises. Based on the objective, I set the tasks to research the modern concepts of depreciation existing in foreign literature; to analyze major depreciation systems in the EU (British, French, and German); to review the main elements of amortization policy of European enterprises. Methods The study employs categorical, subject-object and systems approaches, the comparative analysis, synthesis, observation and logical generalization. Results The paper summarizes the experience of European enterprises in depreciation policy formation and reveals certain problems of fixed assets accounting and depreciation. The analysis of theoretical approaches to improving the efficiency of accounting policy enabled to systematize factors directly influencing the choice of methods for fixed assets accounting and depreciation. Conclusions and Relevance The findings may help develop the theory and practice of enterprise management accounting. The recommendations for improving the techniques and methods of depreciation will enable to perfect management accounting at enterprises and efficiency of their depreciation policy.
Keywords: depreciation, fixed assets, IFRS, industrial enterprise, EU
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