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Sum of the years digits depreciation |
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Sum of the years digits depreciationMethod of accelerated depreciation.Sum of the years digits depreciation Similar MatchesDepreciationDepreciationThe 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. Depreciation tax shieldDepreciation tax shieldThe value of the tax write-off on depreciation of plant and equipment. Capital depreciationCapital depreciationSee depreciation. DepreciationDepreciation1. 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. 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. Further SuggestionsAsset Depreciation Range SystemRecapture Of Depreciation Depreciation Straight line depreciation Real appreciation or depreciation Declining Balance Method Of Depreciation Book Depreciation Earnings before interest, taxes, depreciation, and amortization (EBITDA) Currency depreciation Currency depreciation Double declining balance depreciation method (DDB) Capital appreciation or depreciation Earnings before interest, taxes, and depreciation (EBITD) Double declining balance depreciation Double Declining Balance Method Of Depreciation |
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