Depreciation: Difference between revisions
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#An accounting charge reflecting the estimated annual cost to a business of a capital asset over its estimated useful economic life. Accounting depreciation seeks to ensure that the total accounting cost of a capitalised asset is appropriately spread and matched to the economic benefits of using the asset. Methods of spreading the total accounting cost include Straight line, Reducing balance and Sum of the digits. | |||
An accounting charge reflecting the estimated annual cost to a business of a capital asset over its estimated useful economic life. Accounting depreciation seeks to ensure that the total accounting cost of a capitalised asset is appropriately spread and matched to the economic benefits of using the asset. | #More generally, any decrease in the value of an asset resulting from the passing of time. | ||
#A decrease in the value of a currency. | |||
Methods of spreading the total accounting cost include Straight line, Reducing balance and Sum of the digits. | |||
More generally, any decrease in the value of an asset resulting from the passing of time. | |||
A decrease in the value of a currency. | |||
== See also == | == See also == | ||
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* [[Tax depreciation]] | * [[Tax depreciation]] | ||
* [[Writing down allowance]] | * [[Writing down allowance]] | ||
Revision as of 19:48, 11 August 2013
- An accounting charge reflecting the estimated annual cost to a business of a capital asset over its estimated useful economic life. Accounting depreciation seeks to ensure that the total accounting cost of a capitalised asset is appropriately spread and matched to the economic benefits of using the asset. Methods of spreading the total accounting cost include Straight line, Reducing balance and Sum of the digits.
- More generally, any decrease in the value of an asset resulting from the passing of time.
- A decrease in the value of a currency.
