USE OF REAL DEPRECIATION IN FINANCIAL MANAGEMENT OF METALLURGICAL ENTERPRISES

1 KUTÁČ Tomáš
Co-authors:
1 KUTÁČ Josef 1 ŠVECOVÁ Eva
Institution:
1 VSB - Technical University of Ostrava, Ostrava, Czech Republic, EU, josef.kutac@vsb.cztomas.kutac@vsb.cz, eva.svecova@vsb.cz
Conference:
30th Anniversary International Conference on Metallurgy and Materials, Brno, Czech Republic, EU, May 26 - 28, 2021
Proceedings:
Proceedings 30th Anniversary International Conference on Metallurgy and Materials
Pages:
1345-1350
ISBN:
978-80-87294-99-4
ISSN:
2694-9296
Published:
15th September 2021
Proceedings of the conference have already been published in Scopus and we are waiting for evaluation and potential indexing in Web of Science.
Metrics:
500 views / 262 downloads
Abstract

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.

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