|
|
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 MatchesReal appreciation or depreciationReal appreciation or depreciationA change in the purchasing power of a currency. 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. Capital appreciation or depreciationCapital appreciation or depreciationThe increase or decrease in the value of the individual's investment in the property. 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, depreciation, and amortization (EBITDA)Earnings before interest, taxes, depreciation, and amortization (EBITDA)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 and amortization expenses are not included in the costs. Further SuggestionsDouble declining balance depreciation method (DDB)Accrued Depreciation Currency depreciation Depreciation Double Declining Balance Method Of Depreciation Currency depreciation Capital depreciation Double declining balance depreciation Book Depreciation Earnings before interest, taxes, and depreciation (EBITD) Sum of the years digits depreciation Asset Depreciation Range System Depreciation tax shield Recapture Of Depreciation Straight line depreciation |
|
|
|