Depreciation and Ex dividend: Difference between pages

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imported>Doug Williamson
(Note other acceptable bases of allocating total cost over time.)
 
imported>Doug Williamson
(Add alternative spelling.)
 
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(Ex div).
1.
1.


Depreciation is an accounting charge reflecting the estimated periodic cost to a business of a physical capital asset over its estimated useful economic life.
In relation to a transfer of equity shares, a transfer excluding the entitlement to receive the next dividend payment.
 
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.
 
(Financial reporting standards generally permit the use of any systematic basis of allocating the total cost over the useful life of the asset.)
 
 
It's important to be clear about the distinction between the:
*Depreciation charge for the period; and
*Cumulative depreciation provision at the end of the period.
 
 
The depreciation charge is an in-period accounting expense, charged against profits for the period.
 
The cumulative provision for depreciation is a liability in the balance sheet. It's offset against the cost of the assets, to calculate their accounting net book value.




2.
2.


More generally, any decrease in the value of an asset resulting from the passing of time.
A basis of quoting traded equity prices which excludes the entitlement to receive the next dividend payment.




3.
Also written ''ex-div''.


A decrease in the value of a currency.


== See also ==
* [[Cum dividend]]
* [[Dividend]]
* [[Dividend growth model]]
* [[Dividend record date]]
* [[Equity]]
* [[Ex-coupon]]


== See also ==
[[Category:Financial_products_and_markets]]
* [[Accumulated depreciation]]
* [[Amortisation]]
* [[Appreciation]]
* [[Assets]]
* [[Capital allowances]]
* [[Cost]]
* [[EBITDA]]
* [[International Fisher Effect]]
* [[Net book value]]
* [[PPE]]
* [[Provision]]
* [[Reducing balance]]
* [[Straight line]]
* [[Sum of the digits]]
* [[Tax depreciation]]
* [[Writing down allowance]]
* [[CertICM]]

Revision as of 13:42, 9 January 2019

(Ex div).

1.

In relation to a transfer of equity shares, a transfer excluding the entitlement to receive the next dividend payment.


2.

A basis of quoting traded equity prices which excludes the entitlement to receive the next dividend payment.


Also written ex-div.


See also

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