|
|
Declining Balance Method Of Depreciation |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Declining Balance Method Of DepreciationDepreciation by a fixed annual percentage of the balance after deducting each yearly depreciation amount.Declining Balance Method Of Depreciation Similar MatchesCapital depreciationCapital depreciationSee depreciation. 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. Sum of the years digits depreciationSum of the years digits depreciationMethod of accelerated depreciation. Double Declining Balance Method Of DepreciationDouble Declining Balance Method Of DepreciationA use of the declining balance method, but with double the depreciation allowable by straight line. An accelerated method. Accrued DepreciationAccrued Depreciation(1) The amount reserved each year in the accounting system for replacement of a building or other asset. (2) The useful life of a property at any given time. Further SuggestionsDepreciationDouble declining balance depreciation method (DDB) Real appreciation or depreciation Double declining balance depreciation Recapture Of Depreciation Asset Depreciation Range System Capital appreciation or depreciation Currency depreciation Earnings before interest, taxes, and depreciation (EBITD) Depreciation tax shield Book Depreciation Depreciation Currency depreciation Earnings before interest, taxes, depreciation, and amortization (EBITDA) Straight line depreciation |
|
|
|