Strengthening the Role of Depreciation Policy in Forming the Financial Basis of the State's Investment Security and Capital Investments

In martial law conditions, the problem of making capital investments becomes even more tangible for business entities, given the limitation of their financial capabilities, which, accordingly, affects the investment security of the state. The situation is aggravated due to the lack of sufficient interaction between the state's investment security provision and depreciation policy. The article's purpose is to form conceptual directions for the development of depreciation policy as a tool for financial support of the state's investment security. The study results indicate that the current state of affairs with the allocation of depreciation deductions to finance current assets contradicts the laws of the circulation of individual capital and does not allow the restoration of fixed assets at the required level. This situation is caused by the improper reflection of the content of depreciation in Ukrainian legislation at various levels, which reduces its perception as a means of reducing tax liabilities. The economic content of depreciation as a source of capital investments should not change depending on the way to ensure the targeted use of these funds because depreciation deductions are costs from the point of view of the economic (accounting) concept and a source for investment - from the point of view of the financial concept. However, to ensure all functions (reproductive, financial, regulatory), the state must delegate to business entities the maximum rights to determine depreciation norms and methods. Accelerated depreciation should not be an exception, as it loses meaning in interpreting depreciation in the context of classical approaches to circling individual entrepreneurial capital. The proposed theoretical approaches, subject to the application of appropriate mechanisms, will increase the resource base of capital investments, including the expanded reproduction of fixed assets, ultimately improving the state's investment security.