Reducing balance - Revision history

imported>Doug Williamson: Add links.

2022-07-18T17:00:58Z

Add links.

← Older revision		Revision as of 17:00, 18 July 2022
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	== See also ==		== See also ==
			* [[Balance]]
			* [[Balance sheet]]
	* [[Depreciation]]		* [[Depreciation]]
	* [[Straight line]]		* [[Straight line]]

imported>Doug Williamson: Layout.

2021-11-21T13:46:48Z

Layout.

← Older revision		Revision as of 13:46, 21 November 2021
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	2.		2. ''UK tax.''

	''UK tax.''

	UK Writing Down tax Allowances are normally available to be claimed on a reducing balance basis.		UK Writing Down tax Allowances are normally available to be claimed on a reducing balance basis.

imported>Doug Williamson at 19:32, 15 January 2016

2016-01-15T19:32:04Z

← Older revision		Revision as of 19:32, 15 January 2016
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	The net book value at the end of Year 1 (and the start of Year 2), in $m:		The net book value at the end of Year 1 (and the start of Year 2), in $m:

	= 12 - 4.8		= 12 - 4.8

	= 7.2		= 7.2

imported>Doug Williamson: Correct calculs

2015-03-18T15:15:51Z

Correct calculs

← Older revision		Revision as of 15:15, 18 March 2015
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	The depreciation charge for Year 1 would be:		The depreciation charge for Year 1, in $m, would be:

	= ~~$12m~~ x 40%		= 12 x 40%

	= $4.~~8m.~~		= 4.8


	The net book value at the end of Year 1 (and the start of Year 2):		The net book value at the end of Year 1 (and the start of Year 2), in $m:

	= 12 - 4.8		= 12 - 4.8

	= ~~$9.2m~~.		= 7.2


	The depreciation charge for Year 2:		The depreciation charge for Year 2, in $m:

	= $9.2m x 40%		= 7.2 x 40%

	= ~~$3.68m~~.		= 2.88


	The net book value at the end of Year 2 (and the start of Year 3):		The net book value at the end of Year 2 (and the start of Year 3), in $m:

	= 9.2 - ~~3.68~~		= 7.2 - 2.88

	~~= $5.52m~~.

			= 4.32

	And so on.		And so on.

imported>Doug Williamson: Standardise appearance of page

2015-03-18T12:35:59Z

Standardise appearance of page

← Older revision		Revision as of 12:35, 18 March 2015
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	~~For example,~~		'''Example'''
	~~a fixed asset has a cost of $12m, to be depreciated on a reducing balance basis at a rate of 40% per year.~~

	~~The depreciation charge for Year 1 would be~~		A fixed asset has a cost of $12m,

	$12m x 40%		to be depreciated on a reducing balance basis at a rate of 40% per year.


			The depreciation charge for Year 1 would be:

			= $12m x 40%

	= $4.8m.		= $4.8m.


	The net book value at the end of Year 1 (and the start of Year 2)		The net book value at the end of Year 1 (and the start of Year 2):

	= 12 - 4.8		= 12 - 4.8
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	The depreciation charge for Year 2		The depreciation charge for Year 2:

	= $9.2m x 40%		= $9.2m x 40%
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	The net book value at the end of Year 2 (and the start of Year 3)		The net book value at the end of Year 2 (and the start of Year 3):

	= 9.2 - 3.68		= 9.2 - 3.68

	= $5.52m.		= $5.52m.


	And so on.		And so on.

imported>Doug Williamson: Make branding consistent

2014-11-26T15:00:15Z

Make branding consistent

← Older revision		Revision as of 15:00, 26 November 2014
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	A basis of allocating costs or allowances across successive time periods by applying a consistent periodic percentage charge to - for example - the reducing net book value of a fixed asset.		A basis of allocating costs or allowances across successive time periods by applying a consistent periodic percentage charge to - for example - the reducing net book value of a fixed asset.

	~~For example, a fixed asset has a cost of $12m, to be depreciated on a reducing balance basis at a rate of 40% per year.~~

	~~The depreciation charge for Year 1 would be~~ $12m x 40% ~~= $4.8m~~.		For example,
			a fixed asset has a cost of $12m, to be depreciated on a reducing balance basis at a rate of 40% per year.

	The ~~net book value at the end of~~ Year 1 ~~(and the start of Year 2) = 12 - 4.8 = $9.2m.~~		The depreciation charge for Year 1 would be

	~~The depreciation charge for Year 2 =~~ $~~9.2m~~ x 40% ~~= $3.68m.~~		$12m x 40%

	The net book value at the end of Year 2 (and the start of Year 3) = 9.2 - 3.68 = $5.52m.		= $4.8m.


			The net book value at the end of Year 1 (and the start of Year 2)

			= 12 - 4.8

			= $9.2m.


			The depreciation charge for Year 2

			= $9.2m x 40%

			= $3.68m.


			The net book value at the end of Year 2 (and the start of Year 3)

			= 9.2 - 3.68

			= $5.52m.

	And so on.		And so on.
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	2.		2.

	''UK ~~Tax~~.''		''UK tax.''

	UK Writing Down tax Allowances are normally available to be claimed on a reducing balance basis.		UK Writing Down tax Allowances are normally available to be claimed on a reducing balance basis.

imported>Doug Williamson: Category added 8/10/13

2013-10-08T09:23:17Z

Category added 8/10/13

← Older revision		Revision as of 09:23, 8 October 2013
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	* [[Sum of the digits]]		* [[Sum of the digits]]
	* [[Writing down allowance]]		* [[Writing down allowance]]

			[[Category:Accounting,_tax_and_regulation]]

imported>Doug Williamson: Spacing 20/8/13

2013-08-20T15:11:07Z

Spacing 20/8/13

← Older revision		Revision as of 15:11, 20 August 2013
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	1.		1.

	A basis of allocating costs or allowances across successive time periods by applying a consistent periodic percentage charge to - for example - the reducing net book value of a fixed asset.		A basis of allocating costs or allowances across successive time periods by applying a consistent periodic percentage charge to - for example - the reducing net book value of a fixed asset.

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	The depreciation charge for Year 1 would be $12m x 40% = $4.8m.		The depreciation charge for Year 1 would be $12m x 40% = $4.8m.

	The net book value at the end of Year 1 (and the start of Year 2) = 12 - 4.8 = $9.2m.		The net book value at the end of Year 1 (and the start of Year 2) = 12 - 4.8 = $9.2m.

	The depreciation charge for Year 2 = $9.2m x 40% = $3.68m.		The depreciation charge for Year 2 = $9.2m x 40% = $3.68m.

	The net book value at the end of Year 2 (and the start of Year 3) = 9.2 - 3.68 = $5.52m.		The net book value at the end of Year 2 (and the start of Year 3) = 9.2 - 3.68 = $5.52m.

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	Using a reducing balance basis of depreciation, the net book value never falls to zero (unless the asset is disposed of).		Using a reducing balance basis of depreciation, the net book value never falls to zero (unless the asset is disposed of).


	2.		2.

	''UK Tax.''		''UK Tax.''

	UK Writing Down tax Allowances are normally available to be claimed on a reducing balance basis.		UK Writing Down tax Allowances are normally available to be claimed on a reducing balance basis.


	== See also ==		== See also ==
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	* [[Sum of the digits]]		* [[Sum of the digits]]
	* [[Writing down allowance]]		* [[Writing down allowance]]

imported>Administrator: CSV import

2012-10-23T14:20:32Z

CSV import

New page

1.
A basis of allocating costs or allowances across successive time periods by applying a consistent periodic percentage charge to - for example - the reducing net book value of a fixed asset.

For example, a fixed asset has a cost of $12m, to be depreciated on a reducing balance basis at a rate of 40% per year.

The depreciation charge for Year 1 would be $12m x 40% = $4.8m.
The net book value at the end of Year 1 (and the start of Year 2) = 12 - 4.8 = $9.2m.

The depreciation charge for Year 2 = $9.2m x 40% = $3.68m.
The net book value at the end of Year 2 (and the start of Year 3) = 9.2 - 3.68 = $5.52m.

And so on.

Using a reducing balance basis of depreciation, the net book value never falls to zero (unless the asset is disposed of).

2.
''UK Tax.''
UK Writing Down tax Allowances are normally available to be claimed on a reducing balance basis.

== See also ==
* [[Depreciation]]
* [[Straight line]]
* [[Sum of the digits]]
* [[Writing down allowance]]