Depreciation of Assets
Fixed assets, such as buildings and machinery, are often the largest purchases a company makes. Business owners have several choices when determining how to account for the cost of these purchases....
In accountancy, depreciation refers to two aspects of the same concept: The
decrease in value of assets (fair value depreciation); The allocation of the cost of
Aug 24, 2016 ... Depreciation is an income tax deduction that allows a taxpayer to recover the ...
Whether the taxpayer elects to expense any portion of the asset.
1. A method of allocating the cost of a tangible asset over its useful life.
Businesses depreciate long-term assets for both tax and accounting purposes. 2.
What is Depreciation? Depreciation is the systematic reduction in the recorded
cost of a fixed asset. Examples of fixed assets that can be depreciated are ...
a portion of the cost of these assets is being used up. The portion being used up
is reported as Depreciation Expense on the income statement. In effect ...
de·pre·ci·a·tion n. 1. A decrease or loss in value, as because of age, wear, or
market conditions. 2. Accounting An allowance made for a loss in value of
A non-cash expense (also known as non-cash charge) that provides a source of
free cash flow. Amount allocated during the period to amortize the cost of ...
Because business assets such as computers, copy machines and other
equipment wear out, you are allowed to write off (or "depreciate") part of the cost
of those ...
May 26, 2016 ... You can download this publication in Portable Document Format (PDF) at Guide
to depreciating assets 2016 (NAT 1996, PDF 623KB).