| This research was conducted at one manufacturing companies which manufactured of aluminium, PT Alexindo. Role of fixeds asset at companies is very important because the company desperately need fixed asset to produced raw material owned and generate some revenue. In this research the author do some analysis of the appropriateness of recording, reporting, and depreciation of fixed assets methode was carried out companies with financial accounting standards (SFAS). Authors compared depreciation expense generated from two different depreciation of fixed asset method are straight line method and double declining balance method. After that, authors do some analyze about the effect with company’s operating income during periode 2010 and 2011. According to analysis, depreciaton expenses that computed with straight line method more stable in every period while the depreciation expense with double decling balance would bigger at beginning of year but depreciation expense will decline in the next years. Authors recommend that company better continue to use double declining balance method, because depreciation expense just gets bigger in the early years when fixed asset depreciated and will declne in subsequent years over the live of the asset so that company’s operating income will be greater than straight line method. |