OPTIMIZATION OF PROFITABILITY INDICATORS THROUGH THE AURIC DEPRECIATION MODEL IN NICARAGUA

Abstract

The implementation of fiscal measures tends to diminish the impact of the tax burden on business economic activities. For years has been used depreciation as a tax shield, so a new model called auric depreciation raised. This approach of the model consisted in weighing higher values in the early years of an asset with regard to the Fibonacci sequence, so serve the improvement of profitability indicators: internal rate of return (IRR) and profitability index (IR). This new model with the straight line and accelerated depreciation (by sum of digits), was compared by the setting of a stage for the enterprise with a minimum annuity to carry the premise of profitability; this annuity with the 30% tax burden was reduced but not before applying three depreciation methods. At the end, average IRR and IR corrected for taxes, proved to be greater with the application of the Auric to planned growth rates higher than 16%, as lower rates is not allowed an appreciable return by any method. This model has, therefore the purpose serve as an incentive for the creation and formalization of new companies, it allows capitalization and survival, and warrants to the tax administration revenue in the long run.