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Straight line depreciation |
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Straight line depreciationAmortizing or apportioning an equal dollar amount of depreciation in each accounting period.Straight line depreciation Similar MatchesReal appreciation or depreciationReal appreciation or depreciationA change in the purchasing power of a currency. 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. 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. Declining Balance Method Of DepreciationDeclining Balance Method Of DepreciationDepreciation by a fixed annual percentage of the balance after deducting each yearly depreciation amount. Capital depreciationCapital depreciationSee depreciation. Further SuggestionsAsset Depreciation Range SystemDouble Declining Balance Method Of Depreciation Currency depreciation Double declining balance depreciation method (DDB) Depreciation Recapture Of Depreciation Capital appreciation or depreciation Double declining balance depreciation Depreciation Depreciation tax shield Sum of the years digits depreciation Earnings before interest, taxes, and depreciation (EBITD) Currency depreciation Book Depreciation Earnings before interest, taxes, depreciation, and amortization (EBITDA) |
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