Effect of Depreciation of Tangible Fixed Assets on Economic Results of Business

This bachelor thesis deals with the depreciations of tangible fixed assets and its impact on the economic results of business. The aim of the bachelor thesis is to survey the structure of tangible fixed assets in a chosen company, to analyse and to evaluate the methods of depreciation of chosen groups of tangible fixed assets in relation to real situation and economic results. The final aim is to suggest any possible solution of the depreciation policy of a company depending on detected results. . The theoretical part deals with the characteristic of fixed assets and tax and accounting depreciation. The practical part is focused on an unnamed limited liability company, whose business object is the retail sale of pharmaceutical products. In the practical part are calculated and then compared the various of methods of tax depreciation. There are also examples of accounting depreciation and subsequently deferred tax is calculated. The result of the work is to evaluate the depreciation policy of the company and to give a specific recommendations to the method of depreciation in subsequent periods