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Double declining balance depreciation |
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Double declining balance depreciationMethod of accelerated depreciation.Double declining balance depreciation Similar MatchesEarnings 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. 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. Currency depreciationCurrency depreciationSee depreciation. 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. Straight line depreciationStraight line depreciationAmortizing or apportioning an equal dollar amount of depreciation in each accounting period. Further SuggestionsBook DepreciationEarnings before interest, taxes, and depreciation (EBITD) Depreciation Capital depreciation Accrued Depreciation Real appreciation or depreciation Depreciation Recapture Of Depreciation Capital appreciation or depreciation Double Declining Balance Method Of Depreciation Asset Depreciation Range System Depreciation tax shield Declining Balance Method Of Depreciation Sum of the years digits depreciation Currency depreciation |
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