Depreciation methods as liquidity levers in practical use

Basics of depreciation

• What is depreciation and why is it important?

Overview of depreciation methods

• Straight-line depreciation.
• Declining balance depreciation.
• Special depreciation allowances and investment deduction (IAB).

Effects of depreciation on taxable profit and liquidity

• Mechanisms of depreciation in the form of liquidity release and hidden reserves.
• Targeted use of free liquidity for reinvestment.

Tax optimization through the choice of depreciation methods

• Which method for which investment? Strategies and decision-making aids.
• Method selection as a strategic accounting tool (accounting policy, tax, compliant with generally accepted accounting principles).
• Criteria for selecting and justifying the appropriate method depending on the investment objective and useful life.

Practical examples

• Depreciation planning in business practice.
• Impact on the balance sheet: how depreciation affects the equity ratio and liquidity.

Current developments and case law

• Investment booster 2025–2027.
• Current BMF letters.
• Current case law.