---
title: "Depreciation Cost in Kazakhstan in 2026: How to Determine and Verify It"
country: KZ
lang: en
author: Сапа Т.И. (https://buhgpt.kz/authors/sapa-ti)
date: 2026-10-14
canonical: https://buhgpt.kz/suraqtar/stoimost-amortizacii-v-kazahstane-v-2026-godu-kak-opredel-en
source: BuhGPT
---

# Depreciation Cost in Kazakhstan in 2026: How to Determine and Verify It

> **TL;DR:** Depreciation cost is the portion of an asset's depreciable amount that an organization systematically recognizes as an expense over its useful life. To calculate it, an accountant first needs the asset's initial cost and residual value, the selected depreciation method, its us

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Depreciation cost is the portion of an asset's depreciable amount that an organization systematically recognizes as an expense over its useful life. To calculate it, an accountant first needs the asset's initial cost and residual value, the selected depreciation method, its useful life, and data on depreciation already accumulated. Initial cost, depreciable amount, residual value, and carrying amount represent different indicators and therefore must not be substituted for one another.
Initial Cost and Depreciable Amount of an Asset
The initial cost of an asset is determined when it is recognized in the accounting records. It includes the purchase price and other costs that, under the applicable accounting rules, are directly attributable to preparing the asset for use. Such costs must be supported by source documents and the organization's accounting policy.
Depreciable amount is the initial cost (or another amount substituted for it in the accounting records) less the residual value. Under the general approach, it is determined based on the cost of the asset, taking its residual value into account. However, the specific calculation depends on the accounting model adopted by the organization, the characteristics of the asset, and the applicable financial reporting standards.
To correctly determine the cost of property, plant and equipment (PPE) for depreciation purposes, the accountant should verify:
- the date the asset was recognized and became ready for use;

- the documented costs included in its initial cost;

- the established residual value;

- its useful life;

- the selected depreciation method;

- subsequent changes in the asset's estimates or parameters.

If the initial cost changes following modernization, reconstruction, revaluation, or another transaction, merely correcting the amount in the register is insufficient. The basis for the change must be determined, the documents must be prepared, and its effect on subsequent depreciation charges must be verified.
Depreciation, Residual Value, and Carrying Amount
Accumulated depreciation is the amount of depreciation recognized since the asset was first used. It is neither a separate value of the asset nor an amount of future expenses. This indicator is used to determine the asset's current accounting value and to verify the accuracy of depreciation charges.
Residual value is generally regarded as the difference between the amount at which an asset is accounted for and the accumulated amounts that reduce this value. The composition of the amounts deducted depends on the applicable accounting model. Therefore, before performing the calculation, it is necessary to understand whether only depreciation or other value adjustments are also involved.
Carrying amount is the amount at which an asset is presented in the financial statements after deducting accumulated depreciation and impairment losses. An error occurs when the accountant uses the initial cost instead of the current carrying amount or reduces the base again by depreciation that has already been recognized.
For reconciliation purposes, it is useful to prepare an asset record that separately shows:
- the initial or revalued cost;

- accumulated depreciation;

- residual value;

- current carrying amount;

- remaining useful life;

- the depreciation amount for the period under review.

This approach helps identify why accumulated depreciation does not equal the amount calculated by simply dividing the initial cost. Possible reasons include a change in useful life, a revision of residual value, modernization, revaluation, a temporary suspension of depreciation under the applicable accounting rules, or the correction of an error.
Depreciation of Equipment Cost
The cost of equipment is depreciated after the item has been recognized as an asset and brought into a condition suitable for its intended use. Payment to the supplier does not always mean that depreciation should already begin: the equipment may require delivery, installation, testing, or other preparation.
Before making the calculation, a separate asset must be distinguished from its components. If parts of the equipment have different useful lives or consume economic benefits differently, their accounting treatment is determined under the applicable standards and accounting policy. Costs for routine maintenance, replacement of a significant component, and enhancement of performance may also be recognized differently.
When depreciation parameters change, it is important for the accountant to record the revision date. In the accounting system, the new parameters may apply to subsequent depreciation charges rather than to a period that has already been closed. The automatically calculated carrying amount must be reconciled with the PPE record, account turnovers, and the document formalizing the change.
Determining the Depreciable Amount in the Republic of Kazakhstan
In Kazakhstan, accounting and tax calculations should be maintained separately if the applicable rules produce different results. The depreciation amount in financial accounting must not be automatically transferred to the tax calculation without verifying the legal basis.
The context of the transaction must also be considered. For example, Article 252 of the Tax Code regulates the result from the disposal of securities and separately mentions the amortization of a discount or premium on debt securities. This is a different accounting item: this provision cannot be used as a rule for calculating depreciation of property, plant and equipment.
Special industry rules also do not replace the general procedure for accounting for PPE. Under the tariff-setting rules for certain concession entities, depreciation charges are included as an element of tariff calculations. Such provisions apply only where the entity has the relevant status and conducts regulated activities.
The practical verification procedure is as follows:
- Determine the type of accounting for which the calculation is required: financial, tax, or management accounting.
- Identify the asset, its intended purpose, and the date it became ready for use.
- Support the initial cost with documents.
- Verify the residual value, useful life, and depreciation method.
- Reconcile depreciation charges with the PPE record and the general ledger.
- Separately document any revision of estimates, revaluation, modernization, or correction of an error.
- Verify the current version of the applicable provisions as of the transaction date.
Frequently Asked Questions
Is the initial cost equal to the depreciable amount? — Not necessarily. The depreciable amount is determined taking into account the parameters established for calculating depreciation, including the residual value.
What does accumulated depreciation mean? — It is the total amount of depreciation recognized for the asset as of the selected date. It reduces the asset's accounting value but is not itself the value of a separate asset.
How does residual value differ from initial cost? — Initial cost is determined when the asset is recognized, while residual value reflects its current accounting value after accumulated reductions in value.
Can accounting and tax depreciation be calculated in the same way? — Only if the results actually coincide under the applicable rules. The accounting amount cannot automatically be treated as a tax deduction.
How does a change in useful life affect depreciation? — It changes the subsequent calculation. The date and basis of the revision must be documented, and the application of the new parameters must be verified in the accounting system.
Sources
- Tariff-Setting Rules for Natural Monopoly Entities Operating under Concession Agreements

- Tax Code of the Republic of Kazakhstan, Article 280

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