Depreciating asset and Depreciation: Difference between pages

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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.
 
#More generally, any decrease in the value of an asset resulting from the passing of time.
''UK tax.''
#A decrease in the value of a currency.
 
An asset which has a life not exceeding 60 years.
 
 
 
2.  
 
Any asset whose value is normally expected to reduce with the passing of time.
 


== See also ==
== See also ==
* [[Accumulated depreciation]]
* [[Amortisation]]
* [[Appreciation]]
* [[Assets]]
* [[Assets]]
* [[Replacement asset relief]]
* [[Capital allowances]]
* [[Residual value]]
* [[EBITDA]]
* [[Useful life]]
* [[Net book value]]
 
* [[Reducing balance]]
[[Category:Accounting,_tax_and_regulation]]
* [[Straight line]]
* [[Sum of the digits]]
* [[Tax depreciation]]
* [[Writing down allowance]]

Revision as of 19:48, 11 August 2013

  1. 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.
  2. More generally, any decrease in the value of an asset resulting from the passing of time.
  3. A decrease in the value of a currency.

See also