IMPACT OF DEPRECIATION EXPENSES ON FINANCIAL PERFORMANCE OF COMPANIES

IMPACT OF DEPRECIATION EXPENSES ON FINANCIAL PERFORMANCE OF COMPANIES

ANUSHA R

PES UNIVERSITY

Abstract:

A company’s or enterprise’s financial performance can be analysed by the obtained net results of current year. It is not significant because it always takes the profit taxes and the financial elements. The enterpice’s actual effort is difficult to ascertain in few cases. The results of an enterprise’s financial and business performance is always dependent on the companies fiscal and financial policy, but it also takes in account depreciation, amortization and provisioning policy and also the important one the inventory valuation methods.

The main question for the enterpreneurs and owners is that ‘’ which depreciation method is effective and efficient? Will this effect their profitability?. From the view point of my research paper I would propose the ‘methods of depreciation’ the fixed assets & comparing it with the financial performances of the companies, specially on the results.

In this research paper, I have primarily used the empirical data collected from various sources for my research value, from studies, stastical yearbooks, literacture, annual financial statements of companies.