Depreciation and Abate: Difference between pages

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1. ''Financial reporting - accounting practices.''
1. ''Environmental policy - emissions.''  


Accounting depreciation spreads the cost of a long-term tangible asset over its total life.  
To reduce or eliminate greenhouse gas emissions.


The depreciation accounting charge reflects:
* the estimated periodic cost to a business
* of a physical capital asset
* spread over its estimated useful economic life.


:<span style="color:#4B0082">'''''Aviation is a hard-to-abate sector'''''</span>


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.
:"The success of the [Heathrow sustainability-linked bond] was evidenced by the participation from SFDR Article 9 funds, which is rare for an issuer in a hard-to-abate sector."


Accounting depreciation is applying the accruals accounting principle to spread the total cost of tangible long term assets over their expected useful life.
:''ACT Deals of the Year Awards 2023: Bonds below £750m winner.''




Methods of spreading the total accounting cost include Straight line, Reducing balance and Sum of the digits.
2.  ''Nuisance - other sources of harm.''


Financial reporting standards generally permit the use of any systematic basis of allocating the total cost over the useful life of the asset.
To reduce or eliminate any other source of harm.




It's important to be clear about the distinction between the:
== See also ==
*Depreciation charge for the period, reflected in the income statement; and
* [[Abatement]]
*Cumulative depreciation provision at the end of the period, reflected in the balance sheet.
* [[Article 6]]
* [[Article 9]]
* [[Carbon credits]]
* [[Carbon footprint]]
* [[Carbon-neutral]]
* [[Carbon tax]]
* [[Corporate social responsibility]]
* [[Deforestation]]
* [[Degradation]]
* [[Direct emissions]]
* [[Downstream emissions]]
* [[Emissions]]
* [[Environmental concerns]]
* [[Fund]]
* [[Greenhouse gas]]
* [[Science Based Targets initiative]]
* [[Scope 1 emissions]]
* [[Scope 2 emissions]]
* [[Scope 3 emissions]]
* [[Sustainable Finance Disclosure Regulation]]  (SFDR)




The depreciation charge is an in-period accounting expense, charged against profits for the period.
==Other resource==


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.
*[https://www.treasurers.org/hub/treasurer-magazine/act-doty23-bonds-below-750m-heathrow ACT Deals of the Year Awards 2023: Bonds below £750m winner - Heathrow]


 
[[Category:Accounting,_tax_and_regulation]]
2. ''Foreign exchange''.
[[Category:Financial_products_and_markets]]
 
[[Category:The_business_context]]
A decrease in the value of a currency.
 
 
3. ''Other contexts.''
 
More generally, any decrease in the value of an asset resulting from the passing of time.
 
 
== See also ==
* [[Accruals accounting]]
* [[Accumulated depreciation]]
* [[Amortisation]]
* [[Appreciation]]
* [[Assets]]
* [[Capital allowances]]
* [[Capitalisation]]
* [[Carry trade]]
* [[CertICM]]
* [[Cost]]
* [[EBITDA]]
* [[International Fisher Effect]]
* [[Net book value]]
* [[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:Accounting,_tax_and_regulation]]
[[Category:Corporate_finance]]
[[Category:Financial_products_and_markets]]
[[Category:The_business_context]]

Latest revision as of 01:54, 30 March 2024

1. Environmental policy - emissions.

To reduce or eliminate greenhouse gas emissions.


Aviation is a hard-to-abate sector
"The success of the [Heathrow sustainability-linked bond] was evidenced by the participation from SFDR Article 9 funds, which is rare for an issuer in a hard-to-abate sector."
ACT Deals of the Year Awards 2023: Bonds below £750m winner.


2. Nuisance - other sources of harm.

To reduce or eliminate any other source of harm.


See also


Other resource

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