Accounting Policies and Options Regarding the Amortization Period - A Comparative Study in the IFRS Practice and Romanian Accounting

摘要

In order to establish the amortization periods, there have been acknowledged within accounting practice two methods: the decentralized method, according to which periods are estimated by the entity, being used for that purpose the professional judgment, in accordance with the intentions of the leadership regarding the usability of the assets in question, but also in accordance with the concrete conditions of use and maintenance and the centralized method, according to which the amortization periods are established at a macroeconomic level and approved with a Government decision. The present work aims to answer at the following challenge: "can amortization periods still be used in accordance with usances, by observing the generally admitted periods? "After a comparative analysis of the two distinct practices of adjusting the amortization period, the current work will try to delineate a potential way to be followed by the Romanian accounting professionals, also by taking into account the limitations imposed by the legislation in force.