Depreciation charges as a source of capitalization of investment in expanded reproduction of fixed assets of diversified business group

Tetyana Vasylivna Kasyanchuk


The expanded reproduction of fixed assets of diversified business group is the basis of rapid economic development and sustained productivity growth. The implementation of relevant investment projects requires determining optimal sources of their funding. It becomes necessary to evaluate the ability for self-financing investment projects because of the limited access to borrowing. So, in this article the author proposes an original approach to assess the ability of diversified business group to self-financing their investment projects of expanded reproduction of fixed assets. The comparative analysis of the use of different depreciation methods has been done and their impact on the effectiveness of the depreciation policy of the company has been determined. A scientific hypothesis about the ineffectiveness of the simultaneous use of the methods of residual value reduction and accelerated residual value reduction of an object of fixed assets, which are amortized, has been proved in favor of the latter. The practical use of self-financing rate of diversified business group investment projects is proved.


diversification; investment project; fixed assets; depreciation; self-financing rate

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Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa

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