Charge of depreciation in our country during the long period of time was subdivided into a complete recovery and into capital repairs. At the same time preliminary rationing of costs of capital repairs as a part of depreciation contradicts its essence. Depreciation — this gradual repayment of the made investments in fixed assets at the expense of production cost, and use of funds for capital repairs in relation to the moment of charge of depreciation is as set, an element of expenses of future period. In other words, costs of acquisition of the new equipment and of its repair essentially differ.
The movement of depreciation covers stages of production and the address of production made on this equipment for the entire period of its functioning. This process does not coincide with compensation of fixed assets which on scales is broader than depreciation at a size of the period of creation of new capacities instead of the left. The period of an embodiment of means of a sinking fund in new instruments of labor, in our opinion, cannot join in depreciation process, it is a new, independent stage of a circulation of funds. A problem of depreciation is compensation of the incurred expenses in fixed assets, accumulation and return of made money, not ensuring reproduction of production potential.
If costs of capital repairs without fail join in product cost through norms of depreciation, there is no incentive them to reduce. If these expenses join in product cost as required, without preliminary rationing, with economic feasibility there is an interest to replace the outdated equipment new without carrying out inefficient repair.
From here and distinction in ways of financing of costs of a complete recovery and capital repairs. If compensation of the means advanced in fixed assets assumes regular inclusion in the price of the created production of the corresponding share of a snashivaniye of fixed assets, repair financing, as well as other elements of the current costs of production, does not require preliminary rationing as a part of norms of depreciation. These expenses have to join directly in cost of products as required of carrying out repair.
Depreciation charges — the part of cost postponed for a product. Its movement joins and in production process, and in process of the address. The monetary sinking fund — is financial result of accumulation of consistently carried out depreciation charges. It is formed only after realization of finished goods.
Depreciation can be defined as process of gradual transfer of cost of means of labor on the cost of finished goods. Depreciation charges — it is that part of cost of means of labor which in each new circulation of funds of the enterprises for a measure of their wear separates and continues the movement as a part of new cost at first in the form of a work in progress then as the part of cost of finished goods, and after its realization collects in the reserve fund of money intended for compensation of the advanced expenses in fixed assets. Thus, distinction of depreciation and wear of fixed assets is accurately outlined. If wear — is loss of potrebitelny cost, so and cost of means of labor, depreciation is meant as process of transferring of cost on a ready-made product. Both processes, despite their distinction, are indissoluble as two parties of the same phenomenon. Therefore depreciation charges, reflecting the size of the postponed cost, at the same time show also degree of wear of fixed assets.
Snashivaniye — a depreciation basis. Compensation of wear happens not in the course of formation of a sinking fund, and at the subsequent its use for replacement of the outdated equipment and during capital repairs and modernization.