Depreciation

 

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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 method (DDB)

Double declining balance depreciation method (DDB)

An accounting methodology in which depreciation is accelerated to twice the rate of annual depreciation by the straight-line method.


Currency depreciation

Currency depreciation

A decline in the value of one currency relative to another currency. Depreciation occurs when, because of a change in exchange rates, a unit of one currency buys fewer units of another currency.


Recapture Of Depreciation

Recapture Of Depreciation

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


Declining Balance Method Of Depreciation

Declining Balance Method Of Depreciation

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


Real appreciation or depreciation

Real appreciation or depreciation

A change in the purchasing power of a currency.


Further Suggestions

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


 
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