Identification of costs for reconstruction and improvement of fixed assets as a basis for effective management

Abstract

Given the significant depreciation of fixed assets in the country, research on ways to optimize the management of their restoration and improvement are practically significant at the enterprise level and national level. The purpose of the article is to study the methodology and practice of identifying the costs of restoration and improvement of fixed assets in their accounting in terms of developing proposals for optimization of this procedure. The conducted analysis stated the absence of clear criteria for delimitation of these costs in the scientific discussion and accounting regulations. The practical application of the provided author's definitions of current and capital repairs, as well as determining the materiality of the costs of capitalization at the enterprise level can increase the efficiency of fixed assets management.