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

Gabriela Dobrota and Felicia Maria Chirculescu

MPRA Paper from University Library of Munich, Germany

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.

Keywords: depreciable fixed assets; profit; loss; fiscal law (search for similar items in EconPapers)
JEL-codes: L25 E26 P16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-acc and nep-mac
Date: 2008-01-08
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Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:11439

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