Depreciation policy of an industrial enterprise: identifying and assessing criteria of efficiency

Abstract

Being an integral part of the overall economic policy, depreciation strategy of the industrial enterprise development is aimed at the achievement of the main corporate goal – the welfare of the company owners, specifically expressed in the maximization of the company’s market value. Effective and efficient depreciation policy can mobilize corporate own investment resources at the right time and to the necessary extent. Integrate assessment of the depreciation policy efficiency of the industrial enterprise is based on the analysis of the following components: technical, economic, scientific and technical efficiency, able to assess the extent of achieving correspondent policy objectives. At the same time, they make the system limitations to the efficient depreciation policy. The purpose of this article is to identify the criteria of efficiency for depreciation policy, assess them and offer mechanisms for mobilizing internal investment resources. The authors conclude that efficient depreciation strategy can ensure higher competitiveness and sustainability of the company’s development in the interests of its owners.