Minfin proposed a new approach to depreciation

Minfin (the Ministry of Finance of the Russian Federation) issued a project of amendments to the Internal Revenue Code (and has already sent it to the Ministry for Economic Development and Trade) which may dranatically change Russian accounting practice in respect to linear and non-linear methods of depreciation to be employed by Russian companies: this project concerns deferent aspects of amortization, including amortization of tangible and intangible assets, defined rate of depreciation (depreciation rate) in respect to depreciation groups, determination of monthly amortization amounts basing on residual value of an asset, an amortized group’s consolidated balance, use of amortization coefficients, use of premium (bonus) amortization and other.