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Currency depreciation |
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Currency depreciationSee depreciation.Currency depreciationA decline in the value of one currency relative to another currency. Depreciation occurs when, because of a change in exchange rates, a unit of one currency buys fewer units of another currency.Currency depreciation Similar MatchesCapital appreciation or depreciationCapital appreciation or depreciationThe increase or decrease in the value of the individual's investment in the property. Real appreciation or depreciationReal appreciation or depreciationA change in the purchasing power of a currency. DepreciationDepreciation(1) Decrease in value to real property improve-ments caused by deterioration or obsolescence. (2) A loss in value as an accounting procedure to use as a deduction for income tax purposes. Earnings before interest, taxes, and depreciation (EBITD)Earnings before interest, taxes, and depreciation (EBITD)A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest and income taxes. Depreciation expenses are not included in the costs. DepreciationDepreciationThe charge in a company's accounts which reflects the reduction in value of an asset over time as its useable life is exhausted.Depreciation is charged before calculation of profit, on the grounds that the use of capital assets is one of the costs of being in business and one of the contributors to profit.There are two main methods of depreciation:Straight line: the residual (scrap) value of the asset is deducted from its original cost, and the resultant figure is divided by the estimated life of the asset. The result of that is deducted annually over the life of the asset. So an asset that costs £10,000 and that has a residual value of £200 with a useable life of 4 years is depreciated by £2450 per year.Reducing balance: the amount of annual depreciation is a constant proportion of the cost of the asset.Depreciation has no effect on cash flow. It is just an accounting procedure. Further SuggestionsDouble Declining Balance Method Of DepreciationCapital depreciation Sum of the years digits depreciation Accrued Depreciation Depreciation Double declining balance depreciation Depreciation tax shield Straight line depreciation Recapture Of Depreciation Book Depreciation Earnings before interest, taxes, depreciation, and amortization (EBITDA) Declining Balance Method Of Depreciation Double declining balance depreciation method (DDB) Asset Depreciation Range System |
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