Depreciation tax shield

 

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Depreciation tax shield

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



Depreciation tax shield

Similar Matches

Sum of the years digits depreciation

Sum of the years digits depreciation

Method of accelerated depreciation.


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.


Currency depreciation

Currency depreciation

See depreciation.


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.


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.


Further Suggestions

Capital depreciation
Double declining balance depreciation
Double Declining Balance Method Of Depreciation
Accrued Depreciation
Asset Depreciation Range System
Book Depreciation
Depreciation
Declining Balance Method Of Depreciation
Recapture Of Depreciation
Double declining balance depreciation method (DDB)
Depreciation
Straight line depreciation
Capital appreciation or depreciation
Real appreciation or depreciation
Currency depreciation


 
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