IDEAS home Printed from
   My bibliography  Save this article

Method of Component Depreciation of Fixed Assetsts and Its Comparision with Traditional Methods


  • Starova, M.
  • Cermakova, Helena


This contribution analyzes, based on specific examples, accounting procedures and tax implications of depreciation of tangible fixed assets. It compares the component method, which has recently appeared in the Czech legal regulations, with the traditional methods. To compare the effects that the traditional methods have on profit or loss, or rather on the tax base, also the generation of provisions is used. The use of component depreciation is governed solely by the accounting regulations while the Income Tax Act has not been changed in this respect. Profit of loss has to be adjusted by a difference amount between accounting depreciation and tax depreciation in tax return.

Suggested Citation

  • Starova, M. & Cermakova, Helena, 2010. "Method of Component Depreciation of Fixed Assetsts and Its Comparision with Traditional Methods," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, issue 3, September.
  • Handle: RePEc:ags:aolpei:96874

    Download full text from publisher

    File URL:
    Download Restriction: no


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aolpei:96874. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.