Depreciation

 

Home
Site Map
Add Term
Search
About Us
Contributors

Depreciation

1. A fall in the value of a country's currency on the exchange market, relative either to a particular other currency or to a weighted average of other currencies. The currency is said to depreciate. Opposite of "appreciation." 2. The decline in value or usefulness of a piece of capital over time, and/or with use.

Depreciation

(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.

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.



Similar Matches

Double declining balance depreciation

Double declining balance depreciation

Method of accelerated 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.


Capital appreciation or depreciation

Capital appreciation or depreciation

The increase or decrease in the value of the individual's investment in the property.


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.


Recapture Of Depreciation

Recapture Of Depreciation

Taxing as ordinary income, upon the sale of property, the amount of depreciation taken above straight line depreciation.


Further Suggestions

Capital depreciation
Depreciation tax shield
Sum of the years digits depreciation
Accrued Depreciation
Currency depreciation
Currency depreciation
Real appreciation or depreciation
Double declining balance depreciation method (DDB)
Asset Depreciation Range System
Earnings before interest, taxes, depreciation, and amortization (EBITDA)
Book Depreciation
Straight line depreciation
Declining Balance Method Of Depreciation


 
All rights Reserved. Do not copy without permission.