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The article discusses from a financial management aspect the use of book depreciated fixed assets in the manufacturing process, which is a situation typical for companies operating in iron smelting and steel and cast-iron foundries. In most cases, the manufacturing plant of these businesses was acquired more than 30 years ago, and in many cases more than 60 years ago. The article explains real depreciations and defines the financial indicators which can be used to identify the level of threat to a company’s financial health due to the large differences between book depreciations and the real depreciations of a fixed asset.
Keywords: Depreciations, financial health, management accounting© This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.