Substantiation of the Approach to Selecting the Depreciation Method for Property, Plant, and Equipment

DOI

10.2991/mdsmes-19.2019.34How to use a DOI?

Keywords

Property, plant, equipment, depreciation methods, financial statements, oil and gas companies

Abstract

The purpose of the article is to substantiate the approach to selecting the depreciation method in oil and gas companies. To achieve this purpose, the following research methods were used: observation, comparison, integrated study of business transactions – to collect factual information on the use of depreciation methods in oil and gas companies; abstraction, analysis – to substantiate the approach to selecting the depreciation method for property, plant, and equipment; graphical method – for the visual presentation of research material. The scientific novelty of the study is that the authors have substantiated the approach to selecting the depreciation method for property, plant, and equipment in oil and gas companies. In order to optimally select the depreciation method the authors have proposed to develop a testing system with the help of the automated accounting system. It will test property, plant, and equipment in terms of different groups, in particular the anticipated revenues, nature of assets use, etc. This will help to improve the qualitative characteristics of financial statements in terms of the reliability of information about property, plant, and equipment.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Tetiana Dolishnia
AU  - Iryna Medvid
AU  - Olga Stepanyuk
AU  - Yuliia Stakhmych
PY  - 2019/10
DA  - 2019/10
TI  - Substantiation of the Approach to Selecting the Depreciation Method for Property, Plant, and Equipment
BT  - Proceedings of the 2019 7th International Conference on Modeling, Development and Strategic Management of Economic System (MDSMES 2019)
PB  - Atlantis Press
SP  - 179
EP  - 182
SN  - 2352-5428
UR  - https://doi.org/10.2991/mdsmes-19.2019.34
DO  - 10.2991/mdsmes-19.2019.34
ID  - Dolishnia2019/10
ER  -