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Theoretical Analysis of Depreciation in Municipalities (Gnosiology, Ontology and Epistemology)

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Theoretical Analysis of Depreciation in Municipalities (Gnosiology, Ontology and Epistemology) Trakia Journal of Sciences, Vol. 17, Suppl. 1, pp 524-529, 2019 Copyright © 2019 Trakia University Available online at: http://www.uni-sz.bg ISSN 1313-7069 (print) ISSN 1313-3551 (online) doi:10.15547/tjs.2019.s.01.083 THEORETICAL ANALYSIS OF DEPRECIATION IN MUNICIPALITIES (GNOSIOLOGY, ONTOLOGY AND EPISTEMOLOGY) D. Velikov* Department of Finance and Management, Plovdiv University "Paisii Hilendarski", Plovdiv, Bulgaria ABSTRACT The amortization charge leads to an improvement in the quality of accountability and public finance statistics. Accounting analysis is part of the information function of accounting. The aim of the publication is to analyze depreciation in municipalities and to propose a synthesis of properties and a summary of common features, trends and laws. The ontological nature of depreciation in accounting science presents the main problems solved by accounting for depreciation. Epistemological coverage of depreciation covers its origin, scope and peculiarities. The research methods are analysis and synthesis, comparison, analogy, modeling, systematization and summary, comparative and group accounting analysis. The results obtained are presented in tabular form. The conclusion is that by switching from a smaller range of the signage coverage of the unit to the depreciation in municipalities, we are targeting a wider range of sign coverage, pointing out the qualities of the different categories of depreciation in the municipalities as an internal definition and an external manifestation. Key words: depreciation, theoretical analysis, accounting, public sector, category, quality. INTRODUCTION expression of the systematic distribution of the The accrual of depreciation in the public sector depreciable value of the asset over its last life. leads to an improvement in the quality of The subject of the survey is the normative accountability and public finance statistics. The requirements for accruing the depreciation in need for accrual of depreciation as a regular the municipalities and its subject - accrual and reporting process is driven by the demand for accounting of the depreciation in the public sustainability in the public systems. Difficulties sector. in the public sector accounting system arise from accounting treatment and the very nature The origin of the word depreciation comes from of the concept of "public good". A typical the Latin word mortus - dead. The concept of example of the difficulties faced by the amortization is associated with a lack of accounting science in the public sector is the functionality for the property. In accounting, development of an informative model in depreciation means decreasing the asset's asset municipalities to account for the depreciation value also means 'denial of death' (1) through and recovery of fixed assets. For municipalities, the reimbursement of the asset from the the transfer of parts of fixed assets by accumulated amortization. Depreciation is rescheduling their estimated useful life - as an associated with the consumption of fixed assets expense, in the cost price of the product is an and, as a result, their depletion, which leads to a ____________________________ decrease in their value. "In accounting terms, Correspondence to: Diyan Velikov Velikov, amortization reflects the depreciation of fixed Department of Finance and Management, Plovdiv assets, accounting for the wastage of fixed University "Paisii Hilendarski", Plovdiv, 24 Tsar capital. "(2) In this sense, under depreciation," Asen Str, Tel .: +359 878 529847, e-mail: we mean "immortalization" of fixed assets [email protected] through the ability to recover, to be replaced by 524 Trakia Journal of Sciences, Vol. 17, Suppl. 1, 2019 VELIKOV D. something equally. "(3) Waste of fixed assets comparison, analogy, modeling, systematization leads to a reduction in their value. The reasons and generalization are also used. In addition to for this are mainly two: wear and tear caused by the general science method, the accounting their use in the labor process and aging, which analysis method is also used, which is a method contributes the emergence of new, more of investigating the interdependencies within sophisticated assets, whose use in the enterprise and between accounting entities. The turns out to be economically more comparative and structural methods were used advantageous. Waste is an objective process of as methods of accounting analysis. Through the loss of consumer properties when using the normative approach, priority is given to the asset. "For this reason, it is perceived that the deductive-hypothetical beginning, in which the value of tangible fixed assets included in the deductive approach is the content and the group of depreciable assets should be carried inductive - the form of control. The starting forward by deferring their estimated useful life point is the transition from general and essential as an expense in the cost of the product circumstances to judgment for the proposed produced in the enterprise by the living human categories in accounting with objective labor. "(4) specificity. The contribution of the categorical amortization accounting study is reflected in the The postulates that "... there are different generation of new and confirmatory facts about approaches to developing accounting theory, the the effect of accounting for amortization in the main among which are a descriptive approach, public sector. On the basis of the described an empirical approach and a normative categories of depreciation in municipalities approach." (5) enable philosophical research on through the positive approach, we give the gnosiology, ontology and epistemology to be inductive and hypothetical direction of the used in the study of depreciation. Application analysis by examining their application in the find the normative and positive approach in accounting practice by synthesis of properties accounting. "In the normative approach, and generalization of common features, researchers are focused on what accounting data tendencies and laws where the inductive and indicators are required to be presented to approach is the content and the deductive - the consumers and in this context seek the most form of control. appropriate reporting of business operations ..." (6) When applying the positive approach, Gnosiology of depreciation requires prior researchers "... attempt to discover and explain clarification of the ontological nature of the actual relationships and relationships based depreciation in accounting science and its on empirical observations and inductive concepts applied to studiy the processes. This is conclusions. "(7) The proposed model shown in achieved by clarifying the essence of the main Table 1 was originally uses the normative categories in accounting and their derivative approach in accounting. On the basis of the categories. The latter are the controllable satisfied public needs presented as starting and parameters in the amortization plan and prime categories, a categorical study has been amortization policy. Considering depreciation in done and the derived categories are specified by municipalities we need to clarify the essence of inductive conclusions. In support of our source categories in municipalities as part of the assertions about the use of the positive public sector and their derivative categories. approach, we can turn to the traditions of the Ontology is defined as "a part of philosophy descriptive approach in accounting, which that uses the basic principles, principles, grownds the inductive conclusions. "The structure, and laws of being." (9) The ontology accounting theory developed on its basis of depreciation defines it as a process of clarifies the essence of the accounting and systematical allocation of the depreciable value analytical work done. The inductive way of as a monetary expression of wastage of fixed knowledge is applied. It consists of making assets and as a process, through which the observations for the accounting practice and enterprise maintains its property and justifies formulating general conclusions and inferences. the renovation of fixed assets. Epistemology "(8) The methods of analysis and synthesis, (from the Greek Episteme - Knowledge, Logos Trakia Journal of Sciences, Vol. 17, Suppl. 1, 2019 525 VELIKOV D. - Teaching) is a philosophical discipline that accountant works with certain categories. The "observer the stages, the forms and the ralations category is "a notion in the science that of the knowledge process as well as criteria for expresses the most general and most essential authenticity and truthfulness . "(10) The properties and relations between objects and epistemological analysis of the characteristics of phenomena" (14), "... a basic division by (types, depreciation brings to our attention the path forms) predicates." (15) In the current study we from the theory to the practice and requires use a combination of categories which extends consideration of the legal, economic and social their significant coverage assuming certain aspects of the relevant categories used in the qualities and properties. The communicative public environment. Epistemological nature and meaning of the notions in the description of depreciation includes its origin, auditing and municipal management accounts scope and features. If gnosiology reveals the highlights the depreciation as "... an abstractive relationship object-subject or, how the accounting-legal category." (16) M. Velkov knowledge of the object is realized, defines the accounting
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