Understanding depreciation , zero accounting

Shrinkage
Understanding depreciationIn addition to spending the useful life, depreciation problem is an important issue during the use of fixed assets.
The meaning of Tax accounting depreciation applied are as follows:
"The process of allocation of part of the price to the cost of acquisition of assets (costallocation), so the cost is lower profits" (Prabowo, Yusdianto, op.cit, p 22)
Understanding depreciation is not the same as understanding the company stressed that economic depreciation is a reserve for the purchase of new fixed assets after the assets of the old no longer used.
According to Statement of Financial Accounting Standards (SFAS) No. 17 paragraph 2 of the Accounting Depreciation states that:
"Depreciation is the allocation of an asset that can be depreciated over the estimated useful life, depreciation for the accounting period is charged kependapatan either directly or indirectly". (Association of Accountants, op.cit, No. 17 Paragraph 2)
Accounting depreciation is an accounting system that aims to distribute the cost or other basic value, net of salvage value (if any) of the price of tangible assets, the estimated usage period for a fixed price is concerned. Depreciation is the allocation and valuation (valuation). Depreciation for the year is part of the total cost allocated for the year according to the prevailing system. Although the allocation is fair to consider the events that arise during the year, but depreciation is not intended to measure the effect of the incident. The purpose of depreciation is to present information that is reported as depreciation expense allocation is expected to be useful to the users of financial statements. Information about yangcukup shrinkage is important to users of financial statements, especially in terms of earning power, which is about:

    Process expense to income ratio to calculate the periodic earnings.
    Levels of management effectiveness in using resources.

Tax policy for depreciation should consider three (3) things: (Erly Suandy, Tax Planning, 3rd Edition, Salemba four, Jakarta, 2006, p 30)

    Tax justice, with the shrinkage, the company's manufacturing and capital intensive business type (capital intensive) would greatly benefit than a service company or type of business labor intensive (labor intensive).
    Economic policy, with the shrinkage took effect on improving the investment (capital growth) so EAT / ROI / CF increases.
    Administration, the choice of depreciation should be adjusted with a few things, namely the cost of administration, human resources, and taxpayer compliance.