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Depreciation

TermDefinition
Accumulated Depreciation The total amount of depreciation that has been written off from the date the asset came under the control of the business until the present time.
Book (Carrying) Value The value of a non-current asset yet to be depreciated (calculated by deducting accumulated depreciation from an asset's historical cos).
Depreciation Expense The amount of depreciation written off as an expense for one particular reporting period.
Expired Cost The value of a non-current asset that has already been written off as depreciation.
Straight-Line Method (Fixed Installment) A method of depreciation that allocates the same amount of depreciation every reporting period, regardless of the age of the asset.
Residual (Scrap) Value The amount an asset is expected to realise at the end of its useful life when it is sold, traded in or scrapped.
Useful Life The period of time that a business expects to use a non-current asset for the purpose of earning revenue.
Created by: Giant Kahuna
 

 



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