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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

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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 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 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 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 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 previewInternational Encyclopedia of Hospitality Management 2nd Edition (2012)

by Abraham Pizam

accelerated depreciation, also known as declining balance or diminishing value; (3) units of production. Straight line depreciation is the method that allocates the cost ...

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.

Google previewEncyclopedia of Finance (2006)

by Cheng-Few Lee

Annual accelerated depreciation percentages are given in Table B. To determine an assets' annual depreciation expense, the cost of the asset is multiplied by the percentage for the appropriate asset class and the appropriate year.

Google previewDictionary of Financial Risk Management (1999)

by Gary L. Gastineau, Mark P. Kritzman

Also called Accelerated Depreciation. Accelerated Depreciation: See Accelerated Cost Recovery System (ACRS). Acceleration Covenant: A provision of a debt instrument or swap agreement that requires early payment and termination in the ...

Google previewDictionary for Business & Finance (1995)

by John V. Terry

Accelerated depreciation approximating 1 75 percent declining balance may be used resulting in depreciation recapture. (See Appendix G) accelerated cost recovery system (ACRS) deduction The percentage deduction for depreciation one ...

Google previewAn International Dictionary of Accounting and Taxation (2004)

Twelve Thousand Plus Entries on Accounting, Auditing and Taxation in the United States, Canada, United Kingdom and Australia by Guy Wanjialin

accelerated depreciation a depreciation that results in greater depreciation cost in the early years of a plant's useful life and lesser amounts in later years. Also: amortization; emergency amortization. accelerated method a ...

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 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 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 ...

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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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