Depreciation

Business / Accounting / Depreciation: The value of assets usually decreases as time goes by. The amount or percentage it decreases by is called depreciation. This is normally calculated at the end of every accounting period (usually a year) at a typical rate of 25% of its last value. It is shown in both the profit & loss account and balance sheet of a business. See straight-line depreciation .

Sum-Of-The-Years-Digits (SYD) Depreciation Method

Business / Accounting / Sum-Of-The-Years-Digits (SYD) Depreciation Method: The accelerated depreciation method in which a constant balance (cost minus salvage value) is multiplied by a declining depreciation rate. MORE

Accumulated Depreciation

Business / Accounting / Accumulated Depreciation: The total depreciation recorded on an asset since its acquisition: a contra account deducted from the original cost of an asset on the balance sheet. MORE

Sum-Of-The-Years-Digits Depreciation

Business / Finance / Sum-Of-The-Years-Digits Depreciation: A method of recording accelerated depreciation. Also called the sum-of-digits method, it allows the depreciation of an asset based on an inverted scale of the total digits of the asset's useful life. MORE

Links
Home
Glossary
Thesaurus