Use of Ideas of F. Schmidt in Development of Depreciation of Fixed Assets System
Keywords:
depreciation of fixed assets, organic theory, F. Schmidt, Current cost accountingAbstract
This article considers fundamentals of the organic theory, developed by F. Schmidt. A feature of this theory is to use as an estimate the present value of the acquisition at the balance sheet date and at the date of turnover. Examines the calculation of depreciation of fixed assets within the framework of the organic theory. Gives a proposal to accounting of the amount of retained earnings during converting of accumulated depreciation, when an asset’s carrying amount is increased as a result of a revaluation.Downloads
References
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