Conceptual and theoretical basis of accounting of the depreciation and wear of noncurrent assets of the enterprise

Depreciation (amortization) and wear and tear of noncurrent assets are important objects of accounting. Their amount affects both the financial position and financial performance of the enterprise. However, the existence of various scientific approaches to the interpretation of economic essence of depreciation (amortization) and wear and tear requires additional research of these concepts. In the article the approaches for the interpretation of noncurrent assets’ depreciation (amortization) and wear and tear essence are considered on the basis of the analysis of relevant recent researches. It is proved that the content of these concepts are different, but interrelated. “Wear and tear” is a characteristic of assets, their condition, and depreciation (amortization) refers to the capital of the enterprise, its preservation and restoring of qualitative characteristics. The analysis of the content and evolution of depreciation (amortization) concepts has allowed to determine that a modern methodology of depreciation (amortization) of noncurrent assets accounting is based on a combination of several concepts, among which the economic concept of amortization and capital maintenance concept play the prominent role.