New Accounting Policies Impacting Asset Depreciation and Fiscal Strategies Worldwide
Assets depreciate over time and need to be replaced through amortization. Amortization represents the value lost by an asset due to its use, natural factors, technical progress, and other reasons. Some assets, like lands and financial investments, do not depreciate but may require adjustments. Maintenance self-financing, which includes amortization, is crucial for economic entities to renew fixed assets and adjust for depreciation or loss of value.