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depreciation
(redirected from Accumulated Depreciation)

   Also found in: Dictionary/thesaurus, Medical, Legal, Financial, Acronyms, Encyclopedia, Wikipedia 0.01 sec.

depreciation

In economics, the decline of a currency's value in relation to other currencies. Depreciation is also an accounting procedure applied to tangible assets. It describes the decrease in value of the asset (such as factory machinery) resulting from usage, obsolescence, or time. Amortization is used for intangible assets and depletion for wasting assets. Depreciation is applied to assets yearly, each time reducing the net book value of the asset. It is an important factor in assessing company profits and tax liabilities.



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These include a set of specialized reports for detailing specific lists of business building blocks; an upgrade to "find and replace" that supports title prefixes and suffixes; self-reference support for formula projections, making it easier to create projections that are based on previous line-item values; and modifications to objects that allow accumulated depreciation and amortization to be reported as negative values.
Say a property owner bought a multifamily residential building in 1994 for $1 million The property shows accumulated depreciation of $364,000, leaving a tax basis of $636,000.
 
 
 
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