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Double Declining Balance Method Of Depreciation |
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Double Declining Balance Method Of DepreciationA use of the declining balance method, but with double the depreciation allowable by straight line. An accelerated method.Double Declining Balance Method Of Depreciation Similar MatchesCapital depreciationCapital depreciationSee depreciation. 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. Accrued DepreciationAccrued Depreciation(1) The amount reserved each year in the accounting system for replacement of a building or other asset. (2) The useful life of a property at any given time. 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 depreciationCurrency depreciationSee depreciation. Further SuggestionsSum of the years digits depreciationCapital appreciation or depreciation Double declining balance depreciation Currency depreciation Asset Depreciation Range System Straight line depreciation Real appreciation or depreciation Depreciation Book Depreciation Declining Balance Method Of Depreciation Depreciation tax shield Depreciation Recapture Of Depreciation Double declining balance depreciation method (DDB) Earnings before interest, taxes, and depreciation (EBITD) |
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