depreciation

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depreciation,

n the charges against earnings to write off the cost, less salvage value, of an asset over its estimated useful life. It is a bookkeeping entry and does not represent any cash outlay, nor are any funds earmarked for the purpose. There are three classic methods of applying depreciation: straight line, sum of the year's digits, and double declining balance.

depreciation

the decline in value over time of capital items.
References in periodicals archive ?
Some financial advisers argue that the value of timeshares tends to depreciate over time and if you decide to sell them later, you're not going to recover what you had originally spent.
For example, a taxpayer who exchanges a machine depreciated under the unit-of-production method for a used machine may depreciate under MACRS the sum of the exchanged basis and excess basis of the used machine (replacement property) as a machine placed in service at the time of replacement.
Two years later, when we decided that we could no longer remain on the site, primarily because of the behaviour of the site owners, they denied having said the lodge would not depreciate and gave us only pounds 26,000.
In contrast, a BMW 325d SE Coupe depreciates by only 25% in its first year, by 37% after two years and by 47% after three years.
The court held that HCA could depreciate, over five years, a percentage of the electrical systems, measured by electrical load allocable to hospital equipment, as opposed to general building operation or maintenance.
The Capital Asset Management System-Military Equipment (CAMS-ME) is the system that the P & E Policy Office and the Space and Naval Warfare (SPAWAR) System Center-San Diego have developed to consolidate the average cost of assets, update total program expenditures, depreciate assets over their useful life, and record asset status.
Over the same period EurotaxGlass's predicts the Volvo XC90 will depreciate by pounds 16,717, the Toyota Landcruiser by pounds 16,208 and the Land Rover Discovery3 by pounds 14,109.
This is why the US plays a "strong dollar policy" charade while quietly allowing the currency to depreciate.
Cars that depreciate the least are the Lexus IS200, the Mercedes C-Class and the BMW Compact, each of which lost 47 per cent, according to the magazine.
It aims to help consumers with one of the biggest considerations when buying a car - how much it will depreciate in value, and how rapidly.
China will speed up consideration of full convertibility of its currency after it enters the World Trade Organization (WTO), and has no plan to depreciate the yuan to ease the impact of the global economic downturn on its economy, a senior Chinese central bank official said Wednesday.
Upon review, adjusters will depreciate the value of the items to determine a settlement figure.