Provision for depreciation and Taking private: Difference between pages

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imported>Doug Williamson
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''Financial reporting - accounting practices - longer term tangible assets.''
The transfer of a business from trading on a recognised stock exchange, into private ownership, intended to be for the medium or longer term.


The accounting values of most tangible fixed assets, such as buildings, machinery, office equipment and vehicles are depreciated over their useful lifetime.
Also known as a 'public to private' deal.
 
 
The asset is initially recorded in the balance sheet of the reporting entity at its original cost.
 
In each reporting period, an appropriate amount of depreciation is charged to the income statement as an expense, and deducted from the carrying value of the asset in the balance sheet.
 
The total deduction from the original cost, to arrive at the carrying amount, is known as the accumulated depreciation or the ''provision for depreciation''.
 
 
Land is not normally depreciated as its value is not generally considered to diminish over time.




== See also ==
== See also ==
* [[Balance sheet]]
* [[De-listing]]
* [[Book value]]
* [[Initial public offering ]]
* [[Depreciation]]
* [[Introduction]]
* [[Financial reporting]]
* [[Listing]]
* [[Fixed assets]]
* [[Privatisation]]
* [[Net book value]]
* [[Private equity]]
* [[Reporting entity]]
* [[Short termism]]
* [[Tangible asset]]
* [[Total assets]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Compliance_and_audit]]
[[Category:Investment]]

Revision as of 14:36, 5 August 2018

The transfer of a business from trading on a recognised stock exchange, into private ownership, intended to be for the medium or longer term.

Also known as a 'public to private' deal.


See also

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