 # Declining Balance Method Of Depreciation Home  Site Map  Add Term  Search  About Us  Contributors # Declining Balance Method Of Depreciation

Depreciation by a fixed annual percentage of the balance after deducting each yearly depreciation amount.

Declining Balance Method Of Depreciation

# Depreciation tax shield

Depreciation tax shield

The value of the tax write-off on depreciation of plant and equipment.

# Sum of the years digits depreciation

Sum of the years digits depreciation

Method of accelerated depreciation.

# Depreciation

Depreciation

The 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.

# Double Declining Balance Method Of Depreciation

Double Declining Balance Method Of Depreciation

A use of the declining balance method, but with double the depreciation allowable by straight line. An accelerated method.

# Capital depreciation

Capital depreciation

See depreciation.

# Further Suggestions

Depreciation
Currency depreciation
Capital appreciation or depreciation
Straight line depreciation
Currency depreciation
Depreciation
Earnings before interest, taxes, depreciation, and amortization (EBITDA)
Asset Depreciation Range System
Double declining balance depreciation
Double declining balance depreciation method (DDB)
Real appreciation or depreciation
Accrued Depreciation
Recapture Of Depreciation
Book Depreciation
Earnings before interest, taxes, and depreciation (EBITD)