ANALYSIS OF DEPRECIATION OF INTANGIBLE AND TANGIBLE FIXED ASSETS AND THE IMPACT OF DEPRECIATION ON THE PROFIT OR LOSS AND ON THE TAX BASE OF THE ENTERPRISE

Amortization of intangible fixed assets and depreciation of tangible fixed assets are important tools when looking at the profit or loss of a company. Depreciation is part of the incurred expenses and affects the profit or loss. The aim of the paper is to describe, on a theoretical level, the system of applying methods of accounting and tax depreciation of assets and to examine the impact of depreciation on the profit or loss. On a model example we compare the depreciation rates calculated using the most commonly used depreciation methods in the Slovak Republic. Moreover, we examine their impact on the profit or loss before tax and the tax base. Furthermore, the paper examines the relationship between the amount of depreciation and the profit or loss profit. The paper focused on ten Slovak companies. Secondary data was obtained from the Financial Statements of the Ministry of Finance of the Slovak Republic and processed in the program Statistica.