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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 MatchesRecapture Of DepreciationRecapture Of DepreciationTaxing as ordinary income, upon the sale of property, the amount of depreciation taken above straight line depreciation. Double declining balance depreciationDouble declining balance depreciationMethod of accelerated depreciation. Depreciation tax shieldDepreciation tax shieldThe value of the tax write-off on depreciation of plant and equipment. Double declining balance depreciation method (DDB)Double declining balance depreciation method (DDB)An accounting methodology in which depreciation is accelerated to twice the rate of annual depreciation by the straight-line method. 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 appreciation or depreciation Asset Depreciation Range System Declining Balance Method Of Depreciation Accrued Depreciation Depreciation Real appreciation or depreciation Sum of the years digits depreciation Capital depreciation Earnings before interest, taxes, and depreciation (EBITD) Straight line depreciation Book Depreciation Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation |
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