Application of Tax and Accounting Depreciation Based On IAS / IFRS and Legislation in Slovakia

Regulations in the European Union in the field of accounting are defined under international accounting standards. Individual EU Member States prefer to implement international accounting standards into national legislation in order to ensure competitive business environment of national enterprises in global business environment. Among international accounting standards we can see standard IAS 16 - Property, Plant and Equipment. This standard defines of long run fixed assets and is elaborating various methods of depreciations. The initial objective of our article is to compare various depreciation methods under IAS with depreciations methods applicable by law in the Slovak Republic. Depreciation is in book keeping cost item which represents cost related to the consumption of investments in to the transformation process.