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GAAP.RUNewsNew rules for amortization already approved

New rules for amortization already approved

Publication date: 15 July 2008

Not long ago, we wrote about Minfin’s new proposals concerning rules of amortization. The authority was surprisingly quick about all formal procedures of its project’s approval by the State Duma and the Federal Council, but at what cost. It appears that the legislators rejected many of the ministry’s (most unwanted) proposals - for instance, those on accelerated amortization for property selling and use of non-linear method of amortizations without any alternatives.

By adding one project to another (the one on tax preferences for oil mining companies (mineral extraction tax)), the Ministry of Finance (the Minfin) found support for its proposals concerning amortization (accelerated amortization, amortization premium, rates of depreciation, amortization groups and other issues) from the State Duma’s and the Federal Council’s side, and the only thing left is the official approval by Mr. Medvedev, however, many proposals were rejected - for example, application of non-linear method to all cases while companies are now able to choose linear method which leads to identical results in tax and financial accountancy.