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depreciation
depreciation
A Dictionary of Business and Management
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2006
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© A Dictionary of Business and Management 2006, originally published by Oxford University Press 2006. (Hide copyright information)
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depreciation 1. The diminution in value of a
fixed asset due to
wear and tear or
obsolescence over an accounting period. A
provision for depreciation can be computed by means of a number of generally accepted techniques, including the
straight-line method, the
diminishing-balance method, the
sum-of-the-digits method, the
production-unit method, and the
revaluation method. The depreciation reduces the book value of the asset and is charged against income of an organization in the income statement or
profit and loss account. In the UK, Financial Reporting Standard 15 deals with the subject of depreciation in the accounts.
2. A fall in the value of a currency with a
floating exchange rate relative to other currencies. Depreciation can refer both to day-to-day movements and to long-term realignments in value. For currencies with a
fixed exchange rate a
devaluation or
revaluation of currency is required to change the relative value. Compare
appreciation.
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DEPRECIATION ISSUES:JOSEPH M. MIKRUT
Transcript from: Congressional Testimony; 7/21/2005; 700+ words
; ...forholding u hearing hearing oil the depreciation system L111dCr the present-law Federal income tax. Depreciation is one of the most significant deductions...recovery of these costs through the tax depreciation system, in turn, influences the...
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Depreciation computations made easy.
Magazine article from: The National Public Accountant; 3/1/1991; ; 700+ words
; Depreciation Computations Made Easy Currently...perform as many as three different tax depreciation calculations for any given asset...have been made to simplify the actual depreciation computation, many more options and...
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Depreciation: correct to add back?
Magazine article from: Accountancy Ireland; 8/1/2007; ; 700+ words
; ...tax computations we add back the depreciation charged in the profit and loss account. The reason being, that depreciation is a capital item which is specifically...in one year, how much of the depreciation amount should be added back...
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The measurement of depreciation in the U.S. National Income and Product Accounts.(new geometric method used by the Bureau of Economic Analysis)
Magazine article from: Survey of Current Business; 7/1/1997; ; 700+ words
; ...methodology for calculating depreciation. The improved methodology...markets, which has shown that depreciation for most types of assets approximates...pattern. Previously, the depreciation estimates were derived using...
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Depreciation in Action.(Brief Article)
Magazine article from: Financial Planning; 1/1/2004; ; 700+ words
; Confused about how the new depreciation rules can work for your clients? Here's an example using first-year expensing, bonus depreciation, and regular depreciation for a combined 76% first-year write-off. Note...
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Depreciation in production analysis and in income and wealth accounts: Resolution of an old debate
Magazine article from: Economic Inquiry; 1/1/1996; ; 700+ words
; ...the long-standing controversy over depreciation. I develop, from capital theory...productivity measurement. I conclude that depreciation in economic accounts is exactly the...implications, market-based measures of depreciation are appropriate for economic accounts...
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Bonus depreciation and depreciation conventions. (Financial Planning Tax Tactics).
Magazine article from: Accounting Today; 10/21/2002; ; 700+ words
; ...Cost Recovery System, the half-year depreciation convention generally applies to personal...convention, only a half-year of depreciation is allowed for personal property for...property qualifying for the special depreciation allowance automatically gets a 30 percent...
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Federal depreciation bonus tempered by state.(Job Creation and Worker Assistance Act)(Brief Article)(Statistical Data Included)
Magazine article from: Crain's Cleveland Business; 6/10/2002; ; 700+ words
; ...aware of the opportunity to take a 30% depreciation ``bonus'' in the first year that...before Sept. 11, 2004. The federal depreciation bonus would have created a corresponding...lawmakers have just taken a bite out of the depreciation bonus for state tax purposes. In general...
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Calculating depreciation on a like-kind exchange or an involuntary conversion: temporary regulations have modified the rules for computing depreciation on exchanged or converted property. This article focuses on the use of the optional tables for like-kind exchanges and involuntary conversions.
Magazine article from: The Tax Adviser; 1/1/2006; ; 700+ words
; ...and involuntary conversions, annual depreciation on carryover basis is split between...other rules for applying the optional depreciation tables to exchanged and converted property...using the optional tables and compute depreciation manually. ********** The...
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Depreciation consequences of like-kind exchanges and involuntary conversions: in reviewing the new IRS guidance for property received in like-kind exchanges and involuntary conversions, special attention should be paid to the election.
Magazine article from: The Practical Accountant; 5/1/2004; ; 700+ words
; ...providing definitive guidance for computing depreciation deductions under the Section 168 Modified...automobiles, subject to the Section 280F depreciation limitations. It is in the form of...having recently discovered inconsistent depreciation treatment with regard to the basis...
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Depreciation
Encyclopedia entry from: Encyclopedia of Small Business
Depreciation "Depreciation" literally means the lowering of the value of something —...because the assets have aged. All capital assets are subject to depreciation except land. The current year's depreciation of capital assets...
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depreciation
Book article from: The Columbia Encyclopedia, Sixth Edition
depreciation in accounting , reduction in the value...methods. In the straight-line method, depreciation is simply seen as a function of time...its life. Other methods distribute depreciation over the life of the asset by gradually...
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Currency Appreciation and Depreciation
Encyclopedia entry from: International Encyclopedia of the Social Sciences
...appreciation and currency depreciation describe the movements...appreciations and depreciations are driven by changes...appreciations and depreciations are determined by...appreciations and depreciations turns out to be a...currency appreciation and depreciation in the short run better...
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linear depreciation
Book article from: A Dictionary of Business and Management
linear depreciation Depreciation charges that, when plotted on a graph against time on the x...off the assets concerned. Both the straight-line method of depreciation and the rate per unit of production method, when the depreciation...
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accelerated depreciation
Book article from: A Dictionary of Business and Management
accelerated depreciation A rate of depreciation of assets that is faster than the useful-life basis normally used to calculate depreciation. For example, a computer may be expected to have a useful...
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