Depreciation and amortization of intengible and tangible assets: analysis of referent standards IAS 16 pp&e, IAS 38 intangible assets and IAS 36 impairment of assets

Abstract

Nowadays, we live in an era of increase, in which globalization and digitalization are changing our world and our perceptions.A large-scale problem in the internationalization and globalization of accounting and financial reporting is the study, analysis and application of rules and regulations regarding the recognition, measurement, revaluation of the elements of the entity's assets in a normal management cycle, stipulated by International Accounting Standards. So this article is created to provide veridical and exact information about amortization , depreciation, the difference betwixt these accounting methods and emphasize well-regarded information in International Accounting Standards. The process of distinguishing between depreciation and amortization is complex, but using comparative analysis we can conclude: the depreciation and amortization described in IAS 38 and IAS 16 are the same. However, when we talk about depreciation, we are talking about tangible assets, and when we talk about depreciation, we are talking about intangible assets; impairment described in IAS 16 and impairment described in IAS 36 are different processes. CZU: 657.372.3:006.44; JEL: M41; DOI: https://doi.org/10.53486/9789975359023.35