depreciation , loss of market, loss of use and other consequential losses of any description;
Separate Depreciation Expense and Accumulated Depreciation accounts are maintained for different types of depreciable assets, such as factory buildings, delivery equipment, and office equipment.
Companies may choose from several available depreciation methods.
accumulated depreciation of property, plant and equipment
depreciation of property, plant and equipment
adjusted amount of depreciation of property, plant and equipment
The primary weaknesses of the cost approach are: Its inability to measure the full amount of economic obsolescence;The subjective nature of estimating depreciation ;Its often being very detailed and time-consuming.
The primary strengths of the cost approach are: Its use on special purpose or newer asset properties; Isolation of specific elements of depreciation ; Basis for allocating functional or economic penalties.
Example of factory overhead costs, in addition to indirect materials and indirect labor, are depreciation , electricity, fuel, insurance, and property taxes.
However, management may use different methods in computing depreciation for different assets.
but normal practice in its use for investment appraisal is to calculate profit after depreciation but before any allowance for taxation, and to include in capital employed any increases in working capital that would be required if the project were accepted.
When straight-line depreciation is in use, the depreciation rate is simply “1” divided by the “life” (in years)of the assets.
When we conclude value for a business by the income approach, we have the value of all assets in aggregate. By doing so we are accounting for all elements of depreciation .
Upon the disposal or retirement of a depreciable asset, the cost of the property is removed from the asset account, and the accumulated depreciation is removed from the related contra-asset account.
When depreciable assets are disposed of at any date other than the end of the year, an entry should be made to record depreciation for the fraction of the year ending with the date of disposal.
When an asset is acquired in the middle of an accounting period, it is not necessary to compute depreciation expense to the nearest day or week.
The effect of the third transaction is a $10 decrease of plant assets original cost and a $20 decrease of accumulated depreciation , resulting in a $1 cash inflows, thus bringing out a $60 loss.
In the case of new machines, total depreciation is usually relatively small, tending to minimize the error in estimating depreciation.
This principle means that a company should not change from year to year the method used in computing the depreciation expense for a given plant asset.
The asset account together with the Accumulated Depreciation account should remain in the accounting records without further entries until the asset is retired.
The book value of a plant asset is its cost minus the related accumulated depreciation .
Composite depreciation rate of fixed assets
accelerated depreciation for machinery, equipment and industrial buildings
The data and estimates needed for the computation of the annual depreciation expense are…
There are various methods of calculating the flow of depreciation provisions
The journal entry to record depreciation expense consists of a debit to Depreciation Expense and a credit to Accumulated Depreciation.
Accelerated Depreciation Method
Accelerated depreciation methods result in higher charges to depreciation expense and, therefore, lower reported net income than straight-line depreciation.
属类：简明英汉词典 -English to Chinese-
属类：简明英汉词典 -English to Chinese-
1.A decrease in the value of a currency relative to other currencies.
‘ _depreciation_ leads to losses for non-dollar based investors’
‘a currency _depreciation_ ’
2.A reduction in the value of an asset over time, due in particular to wear and tear.
‘provision should be made for _depreciation_ of fixed assets’
‘Consequently the capital service flow, or _depreciation_ of the asset, cannot be readily determined with any precision.’
独上高台望四海 手揽云月傍天飞， 落叶重重已十月 归鸟凄凄啼心扉。