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Accelerated depreciation

Definition of the noun Accelerated depreciation

What does Accelerated depreciation mean as a name of something?

noun

  1. [automotive] 'Accelerated Depreciation (Automotive)' The lost value a vehicle carries after it’s been repaired from an accident. Accelerated depreciation is the term used in Canada, while in the United States, it is commonly referred to as 'Diminished Value'.

Explanation

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 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.

Printed dictionaries and other books with definitions for Accelerated depreciation

Click on a title to look inside that book (if available):

Google previewEconomic Growth in the West (2014)

Comparative Experience in Europe and North America by Angus Maddison

Accelerated depreciation is an important investment incentive because it provides ...

Google previewThe Economic Effects of Taxing Capital Income (1994)

by Jane Gravelle

Accelerated depreciation naturally causes tax burdens to fall, particularly after a few years, because cumulated depreciation swells and then declines. This pattern occurs because accelerated depreciation is a deferral of 164 Chapter 7 Roots ...

Google previewHorngrens Accounting (2016)

Business, Finance by CTI Reviews

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 ...

Google previewGuide to Passing the Experior Real Estate Exam (2002)

by Rick Knowles

Accelerated depreciation is an accounting procedure and is not relevant for appraisal purposes. 49. (C) The appraiser reconciles the data from all three approaches to determine the value. 50. (B) Gaslight fixtures are curable functional ...

Google previewManagerial Accounting, Concepts and Empirical Evidence (2016)

Business, Finance by CTI Reviews

Accelerated depreciation: Accelerated depreciation refers to any one of several methods by which a company, for 'financial accounting' or tax purposes, depreciates afixedasset in such a way that the amount ofdepreciation taken eachyearis ...

Google previewFinancial Accounting Theory and Analysis, Text and Cases (2016)

by CTI Reviews

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 ...

Google previewPrinciples of Finance (2016)

Business, Finance by CTI Reviews

Accelerated depreciation: Accelerated depreciation refers to any one of several methods by which a company, for 'financial accounting' or taxpurposes, depreciates a fixed asset in such a way that the amount of depreciation takeneachyearis ...

Google previewFinancial Statement Analysis Level I 2008 (2016)

by CTI Reviews

Accelerateddepreciation: 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 ...

Google previewAccounting , What the Numbers Mean 9e (2016)

Business, Finance by CTI Reviews

Accelerated depreciation: Accelerated depreciation refers to any one of several methods by which a company, for 'financial accounting' or taxpurposes, depreciates a fixed asset in such a way that the amount of depreciation takeneachyearis ...

Google previewInter-economy Comparisons (1965)

A Case Study by Leonard A. Doyle

For the purpose of facilitating the use of funds for capital investment rather than for regular government expenditures, accelerated depreciation is an advantage to a socialist economy.

Google previewTobin and Donaldson's Principles of Federal Income Taxation, 8th (Concise Hornbook Series)

by Donald B Tobin

So-called accelerated depreciation is a variation of the proration method except that the deductions are “front-loaded” using various formulas (see Chapter 6). See also ¶ 8.03 on deferred payment sales, which is in effect what we are talking ...

Google previewDICTIONARY OF BUSINESS AND ECONOMIC TERMS, 5th ed. (2007)

ACCELERATED DEPRECIATION any one of a number of allowed methods of calculating depreciation accounting that permit greater amounts of deductions in earlier years than are permitted under the straight-line method, which assumes ...

Google previewLaw Dictionary: Sixth Edition

ACCELERATED DEPRECIATION any one of a number of allowed methods of calculating depreciation which permit greater amounts of deductions in earlier years than are permitted under the straight line method. MODIFIED ACCELERATED ...

Google previewEncyclopedia of Chemical Processing and Design (1981)

Volume 12 - Corrosion to Cottonseed by John J. McKetta Jr

Declining balance and sum-of- digits provide accelerated depreciation in which the annual amounts are large initially and decrease as time passes. Sinking fund depreciation provides retarded depreciation in which the annual amounts are ...

Google previewDictionary of Real Estate Terms, 8th edition (2013)

by Jack P. Friedman, Ph.D., J. Bruce Lindeman, Ph.D.

ACCELERATED DEPRECIATION depreciation methods, chosen for income tax or accounting purposes, that offer greater deductions in early years. The straightline method, rather than accelerated ...

Google previewRoutledge Dictionary of Economics (2013)

by Donald Rutherford

accelerated depreciation (H2) An initial depreciation allowance greater than the annual wearand tear of afixed capital asset. Foranasset with anexpected lifeof ten years,underthe straightline method ...

Google previewA Dictionary of Economics (2016)

by Nigar Hashimzade, Gareth Myles, John Black

Under accelerated depreciation a firm's profits net of * depreciation, and thus its tax liabilities, are lower than they would have been under ...

Google previewEncyclopedia of Financial Models, 3 Volume Set (2012)

by Frank J. Fabozzi

Accelerated depreciation allocates the asset's cost (less salvagevalue) such that moredepreciation is taken intheearlier yearsoftheasset's life.Thereare alternative accelerated methods available, including: Declining balance method, in which ...

Google previewFinancial Lexicon (2004)

A Compendium of Financial Definitions, Acronyms, and Colloquialisms by E. Banks

ACCELERATED DEPRECIATION A DEPRECIATION mechanism that permits faster recovery of costs than conventional STRAIGHT LINE DEPRECIATION methods, and generates greater TAX SHIELDS. Accelerated depreciation is applied to ...

Google previewDictionary of Finance and Investment Terms, 9th ed. (2014)

by John Downes, Jordan Goodman

ACCELERATED DEPRECIATION depreciation methods that allow faster writeoffs than straightline rates in earlier periods of the useful life of an asset. For example, in the first few years of recovery, MACRS allows a 200% DOUBLEDECLINING ...

Google previewThe Encyclopedia of Taxation & Tax Policy (2005)

by Joseph J. Cordes, Robert D. Ebel, Jane Gravelle

Accelerated depreciation as an investment incentive Another conflict in tax design ...

Google previewDictionary of Health Insurance and Managed Care (2006)

by David E. Marcinko, MBA, CFP, CMP

ACCELERATED DEPRECIATION: A method in which larger portions of depreciation are taken in the beginning periods of asset life, and smaller portions are taken in later years. See Depreciation. ACCELERATED PAYMENT: The partial ...

Google previewLongman Dictionary of Financial Terms (2007)

accelerated depreciation Writing off the cost of fixed assets such as machinery and other capital equipment more quickly than would normally be required, or by larger amounts in the initial years of use. This practice is ...

Google previewThe Entrepreneur's Dictionary of Business and Financial Terms (2013)

by Khwaja Masoom

Accelerated Depreciation: A method recognizing high, amounts of depreciation in the earlier years and lower amounts in the later years ofa fixed asset's life. Or the allocation of the cost of a plant asset to ex- pense in an accelerated manner.

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Video about Accelerated depreciation

Accelerated depreciation Meaning

Video shows what accelerated depreciation means. Accelerated Depreciation (Automotive) The lost value a vehicle carries after it's been repaired from an ...

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