(redirected from Accumulated Depreciation)
Also found in: Dictionary, Thesaurus, Medical, Legal, Financial, Acronyms.


in accountingaccounting,
classification, analysis, and interpretation of the financial, or bookkeeping, records of an enterprise. The professional who supplies such services is known as an accountant. Auditing is an important branch of accounting.
..... Click the link for more information.
, reduction in the value of fixed or capital assets, as by use, damage, weathering, or obsolescence. It can be estimated according to a number of methods. In the straight-line method, depreciation is simply seen as a function of time; the cost of the asset, minus its value as scrap, is divided by an estimate of its life. Other methods distribute depreciation over the life of the asset by gradually increasing, or gradually diminishing, installments. The resale value of a machine generally declines most quickly during its early years; thus its depreciation is measured in decreasing installments. The opposite is true of rights of limited duration, such as copyrights and leaseholds, whose value depreciates most quickly as their date of expiration approaches. The technical name for the depreciation of such nonmaterial rights is amortization. The problem of calculating depreciation has special importance because of the need for accuracy in income tax returns. Failure to make allowance for depreciation results in overestimating income. Depreciation of money is brought about by a decline in the price of a particular currency in terms of other currencies, thereby lowering the foreign exchange value of the first currency.


See J. D. Coughlan, Depreciation (1969); R. P. Brief, ed., Depreciation and Capital Maintenance (1984).


The reduction in the value or worth of an asset, such as a building, through physical deterioration over time, and general obsolescence.


(industrial engineering)
Loss of value due to physical deterioration.


Economics a decrease in the exchange value of currency against gold or other currencies brought about by excess supply of that currency under conditions of fluctuating exchange rates
References in periodicals archive ?
1) Based on carrying value of the Company's total investment portfolio, gross of accumulated depreciation and general loan loss reserves.
Reconciliation of GAAP Book Equity to Invested Common Equity (In thousands) (Unaudited) June 30, 2005 Book equity $911,249 Preferred stock (62,500) Accumulated depreciation on operating real estate 3,066 Accumulated other comprehensive income (79,781) Invested common equity $772,034
1) Accumulated depreciation and amortization includes our proportionate share of accumulated depreciation and amortization relating to equity method investments.
After accumulated depreciation of approximately $600,000 and write-downs to fair market value of approximately $1,600,000, the company recognized a gain of approximately $600,000 and received proceeds of approximately $1,129,000.
03 billion, gross of accumulated depreciation, and was comprised of 11 master planned community projects, 12 urban infill land parcels and six waterfront land parcels located throughout the United States.
Similarly, the partial purchase method suggests a portion of OLDCO's accumulated depreciation be carried over to NEWCO.
For depreciation, one must disclose the cost of the major classes of depreciable assets, accumulated depreciation in total or by class and the methods used.
On a preliminary basis, the restatement for years ended December 31, 2003 and 2002 is expected to result in an increase in accumulated depreciation and amortization of approximately $1.

Full browser ?