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Accelerated depreciation Definition from Business & Finance Dictionaries & Glossaries
Campbell R. Harvey's Hypertextual Finance Glossary
Any depreciation method that produces larger deductions for depreciation in the early years of a asset's life. Accelerated cost recovery system (ACRS) , which is a depreciation schedule allowed for tax purposes, is one such example.Copyright © 2000, Campbell R. Harvey. All Rights Reserved.
BASSAM Trade, Real Estate, Mortgage, Fund,Invest, Insurance,& Tax,Terms/abbreviations/defin.
The method used to write off the cost of a fixed asset faster than using the Straight Line method.
Any depreciation method that allows for greater deductions or charges in the earlier years of an asset's depreciable life- with charges becoming progressively smaller in each successive period. Examples include MACRS- ACRS- double declining balance and sum-of-the-years digits methods.
Accelerated depreciation Definition from Encyclopedia Dictionaries & Glossaries
Wikipedia English - The Free Encyclopedia
Accelerated depreciation refers to any one of several methods by which a company, for 'financial accounting' or tax purposes, depreciates a fixed asset in such a way that the amount of depreciation taken each year is higher during the earlier years of an asset’s life. For financial accounting purposes, accelerated depreciation is generally used when an asset is expected to be much more productive during its early years, so that depreciation expense will more accurately represent how much of an asset’s usefulness is being used up each year. For tax purposes, accelerated depreciation provides a way of deferring corporate income taxes by reducing taxable income in current years, in exchange for increased taxable income in future years. This is a valuable tax incentive that encourages businesses to purchase new assets.
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