A Comparative Study on the Traditional Depreciation Method and Depreciation on Current Cost Basis Method

전통적(傳統的) 감가상각방법(減價償却方法)과 시가상각방법(時價償却方法)에 대한 비판적(批判的) 연구(硏究) - Inflation 시(時)를 중심(中心)으로 -

In this study traditional depreciation method has been analysed carefully and then compared with the depreciation on current cost basis for the purpose of reviewing the basic theory underlying depreciation on current cost basis in view of the current situation demanding new method of depreciation. In this treatise the inevitability of rejecting the basic theory of depreciation and traditional depreciation method has been treated. Furthermore the probable consequence when such refutation of traditional depreciation occurs is studied. How to resolve such problems and what is the basis for claiming for depreciation on current cost basis have been also analysed. Through this analysis and research the following conclusions have been drawn: 1. For the purpose of complete recovery of invested capital depreciation on current cost basis is demanded. 2. For the purpose of undertaking realistic profit computation and accounting to apply to comparison and analysis of business operation depreciation on current cost basis is required. 3. When the feasibility of depreciation on current cost basis is guaranteed' then depreciation on current cost basis can be promoted. 4. Depreciation on current cost basis should be studied from the standpoint of evaluation position.