INSTALLATION THE OPTIMAL TERM OF USING FIXED ASSETS

As part of non-current assets enterprises most occupy fixed assets. At the same time, their aging, untimely renewal becomes a deterrent to the economic development of business entities. It is substantiated that in order to effectively manage the depreciation process and timely reproduction of objects, it is necessary to carefully select the method of depreciation calculation and establish the optimal period of useful use (exploitation) of fixed assets. The author's interpretation of the definition of “optimal term for the use of fixed assets” is proposed as a result of the conducted research. It also emphasizes the established “limits” beyond which the use of a particular object loses economic feasibility. The order of establishing the lower limit and the upper limit of the useful use of fixed assets is considered. It is emphasized that if the benefits from the use are less than the loss of a partly mentally or physically depreciated fixed asset, then it would be expedient to complete its exploitation. The approach to determining the useful life of fixed assets is proposed, which provides an enterprise with an additional tool for establishing the useful life of fixed assets in accounting. This approach involves determining the upper limit of the economically justified useful life, taking into account the expediency of exploitation of the object of fixed assets for further gaining the benefit or the expediency of substituting for a more perfect object of fixed assets of the same purpose. It allows taking into account possible losses of an enterprise as a result of acquisition and commissioning of a new object of fixed assets, as well as the consequences of the retirement of the old one. It can be used to justify the medium and long-term planning of measures to upgrade and modernize fixed assets. It is suggested that enterprises periodically or with a substantial change in factors review the effective (economically justified) operation period using the above-mentioned approach.