Depreciation and Multilateral development bank: Difference between pages

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1. ''Financial reporting - accounting practices.''
(MDB).


Accounting depreciation spreads the cost of a long-term tangible asset over its total life.  
Development banks are national or regional banks established to provide loans or equity capital for productive investment, often accompanied by technical assistance, in developing countries.


The depreciation accounting charge reflects:
A multilateral development bank is a supranational one, set up by more than one country.
* the estimated periodic cost to a business
* of a physical capital asset
* spread 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.
 
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, reflected in the income statement; and
*Cumulative depreciation provision at the end of the period, reflected in the balance sheet.
 
 
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.
 
More generally, any decrease in the value of an asset resulting from the passing of time.
 
 
3. ''Foreign exchange''.
 
A decrease in the value of a currency.




== See also ==
== See also ==
* [[Accumulated depreciation]]
* [[African Development Bank]] (AfDB)
* [[Amortisation]]
* [[Asian Development Bank]] (ADB)
* [[Appreciation]]
* [[Central bank]]
* [[Assets]]
* [[Development bank]]
* [[Capital allowances]]
* [[Development finance institution]] (DFI)
* [[Capitalisation]]
* [[European Bank for Reconstruction and Development]] (EBRD)
* [[Carry trade]]
* [[European Investment Bank]] (EIB)
* [[CertICM]]
* [[Inter-American Development Bank]] (IDB)
* [[Cost]]
* [[International Finance Corporation]] (IFC)
* [[EBITDA]]
* [[Islamic Development Bank]] (ISDB)
* [[International Fisher Effect]]
* [[Organisation for Economic Co-operation and Development]]
* [[Net book value]]
* [[Supranational]]
* [[Property, plant and equipment]]
* [[Provision]]
* [[Reducing balance]]
* [[Straight line]]
* [[Sum of the digits]]
* [[Tangible asset]]
* [[Tax depreciation]]
* [[Writing down allowance]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Financial_products_and_markets]]
[[Category:Trade_finance]]

Revision as of 02:37, 15 December 2021

(MDB).

Development banks are national or regional banks established to provide loans or equity capital for productive investment, often accompanied by technical assistance, in developing countries.

A multilateral development bank is a supranational one, set up by more than one country.


See also

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