The depreciation process is closely related to the use of fixed assets in the transport process. The level of involvement of fixed assets in transport processes has always been high and is characterized by an upward trend. The scale of the depreciation phenomenon is the result of trends in the changing structural share of individual types of transport. In Polish conditions, road transport is dominant, accounting for 70% of transport operations.1. The essence of depreciation in the financial management process of a transport enterprise
The essence of depreciation in the management process is determined by many parameters. According to the author, significant parameters include the 8% share of this cost in the structure of the nature-based cost system and the very high 97.5% share of the cost level of the transport sector.
The structural share of depreciation does not explain the scale of the phenomenon due to the different specificity of this particular cost. The specificity of this cost is the significant time gap between the expenditure moment and the cost moment. Depreciation, as well as classifying an expenditure into the category of costs settled in an active manner, causes significant distortions in the process of determining the financial result. Practice knows many examples of different solutions.
For example, the solution implemented by Prof. Władysław Grabski in the interwar period eliminated depreciation, and the investment expenditure was written off once as a cost, while amortization reduced the current value of the fixed asset and equity. Some European countries have introduced periodic
www.stat.gov.pl/gus/5840748PLKHTML.htm ibidem
ML Piechoccy, Real costs of depreciation in Challenges of Modern Accounting and Auditing, SSW, KiBR, UG, Gdańsk 2010, p.88. (…)
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Source: Logistyka Magazine 6/2011