Economics and Business Management

Improvement of accounting and financial reporting systems is carried out in Ukraine in accordance with the requirements of international standards and legislation of the European Union. There are certain differences in the contents of AP(S) 7 "Fixed assets" and IAS 16 "Property, plant, and equipment" regarding criteria of recognition of the asset as a fixed asset; its classification, assessment, and reassessment; depreciation methods, etc. According to recognition of the asset in international practice, there is a probability that future economic benefits will come directly to the entity, and professional judgment should be applied during the determination of the unit of object in each case. Classification of fixed assets includes separate classes of vehicles (ships, planes, and cars) and tools, instruments, and implements (furniture, supplies, and office equipment). Determined types of value of fixed assets: current (recoverable), book value, and sales price. There is no residual, net realizable value of a non-current asset. Reassessment of property, plant, and equipment occurs when the residual value of an object substantially differs from its fair value. The use of the following three methods of depreciation of fixed assets is regulated: straight-line (corresponds to the straight-line method according to AP(S) 7); decrease in residual value (analogue – decrease in residual value); sums of units of production (analog of the manufacturing method). Such two methods of depreciation as cumulative and accelerated reductions in residual values are absent, but other depreciation methods are available and not limited in usage. Implementation of IAS 16 "Property, plant, and equipment" by subjects of public interest in Ukraine will allow switching into international accounting practice

fixed assets; unit of object of fixed assets; classification; assessment; reassessment; methods of depreciation; fair value of object; decrease in residual value; subjects of public interest