Depreciation, Impairments and Depletion

Oct 02, 2012

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Depreciation is a means of cost allocation.It is not a method of valuation.Depreciation involves:allocating the cost of tangible assets to expense in a systematic and rational manner to periods expected to benefit from use of its depreciable assets.. Depreciation: Conceptual. Questions to be ans

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Depreciation, Impairments and Depletion

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Depreciation, Impairments, and Depletion

Depreciation, Impairments, and Depletion Chapter 11 Learning Objectives Depreciation – a method of cost allocation Factors involved in the depreciation process Methods of depreciation (5 methods) Change in estimate Impairments Recognizing impairments Measuring impairments

2.3k views • 22 slides

Depreciation, Cost Recovery, Amortization, and Depletion

Cost Recovery. Recovery of the cost of business or income-producing assets is through:Cost recovery or depreciation: tangible assetsAmortization: intangible assetsDepletion: natural resources. General Considerations . Basis in an asset is reduced by the amount of cost recovery that is allowed or allowable.

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Depreciation

Depreciation. Loss in value from any cause Dis-utility Difference between contribution to market value and cost as though new of the improvements. Wayne Foss, MBA, MAI, CRE Foss Consulting Group Email: wfoss@fossconsult.com. Depreciation. Cost As If New as of the date of appraisal

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Capital Recovery: Depreciation, Amortization and Depletion

NOTE: There are a LOT of changes to the tax code in this chapter as a result of the May 6, 2003 Act!. This chapter examines the various cost allocation methods allowed by the Code: depreciation, amortization and depletion. Each of these methods relates to a process of allocating the cost of an asset over time. Depreciation concerns tangible property, amortization concerns intangible property and depletion concerns natural resources..

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Depreciation, Impairments, and Depletion

Depreciation, Impairments, and Depletion. Chapter 11. Learning Objectives. Explain the concept of depreciation. Identify the factors involved in the depreciation process. Compare activity, straight-line, and decreasing-charge methods of depreciation.

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Taxes and Depreciation

Taxes and Depreciation. If you make some money, the government takes part of it. Who gets it? Who pays it? What is it used for?. Taxable Income. We pay taxes as individuals on our taxable income. Computation of Personal Income Taxes.

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Chapter 11 DEPRECIATION, IMPAIRMENTS, AND DEPLETION Sommers – Intermediate I

Chapter 11 DEPRECIATION, IMPAIRMENTS, AND DEPLETION Sommers – Intermediate I. Is Accounting Helpful for Valuation?. Conceptual Framework (FASB)

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Depreciation and Scatterplots

Depreciation and Scatterplots. Purchasing a Car. For many people in the United States, their car was a reflection on them. People show the world how successful they are by the car they drive.

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Depreciation

Depreciation . www.renos.com.au | info@renos.com.au | 1300 550 656. What is Depreciation?. Hidden cash flow for property investors As buildings get older items wear out – they go down in value You can get a tax benefit for this! You can’t claim depreciation for your PPOR.

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Depreciation

Depreciation. Adjusting for Fixed Assets. Depreciation. Allocation of the cost of a fixed asset over the time it is used to earn revenue Part of the cost of purchasing a fixed asset is an expense of every period where it is used

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Property, Plant, and Equipment; Depreciation and Depletion

Property, Plant, and Equipment; Depreciation and Depletion. At the same time, we also look at: Gain or Loss on Disposition Repair & Maintenance (Why?). Controls Over PP&E. Use of a plant and equipment (capital budget) Maintenance of a subsidiary ledger A system of authorizations

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Taxes and Depreciation

Taxes and Depreciation. MACRS. Review. What is Depreciation? Decline in value due to wear and tear (deterioration), obsolescence and lower resale value. Why do we compute depreciation? To reduce net profit before taxes =>Decrease taxes =>Increase the cash flow after taxes. Review (cont’d).

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Depreciation

Depreciation. Georgia CTAE Resource Network Instructional Resources Office Written by: Dr. Marilynn K. Skinner May 2009. LEARNING GOALS. Define, classify, account for cost of fixed assets. Compute depreciation using straight-line, units-of-production, declining balance.

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Depreciation

Refers to decrease in value of an asset w/time. Important for 2 Reasons:. Info must be provided to shareholders. Income tax consequences (our main concern ). Depreciation. Thus, depreciation(D) reduces taxes by an. amt equal to depreciation times the tax rate.

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Impairments

Impairments. Driver’s Education Coach Jones. Outline for Unit. Impairment What are they Examples Vision Drugs and Alcohol Implied Consent Links. Impairments. What is the definition of impairment?

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Depreciation and Depletion

C. 10. hapter. Depreciation and Depletion. Objectives. 1. Identify the factors involved in depreciation. 2. Explain the alternative methods of cost allocation, including activity and time-based methods. 3. Record depreciation.

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Operational Assets: Depreciation, Impairment, and Depletion of Operational Assets

Operational Assets: Depreciation, Impairment, and Depletion of Operational Assets. DEPRECIATION CONCEPTS. Depreciation - expiration or consumption of the economic service potential of plant assets . AN ECONOMIC FACT. Depreciation accounting - the systematic and

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Depreciation

Depreciation. Depreciation – the reduction in value of an asset. Used to reflect remaining value of an asset over its useful life. Book Depreciation – used by corporations for internal financial accounting Tax Depreciation – use in tax calculations in accordance to government regulations.

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Depreciation

Depreciation. LEARNING OUTCOMES. Understand basic terms of asset depreciation Apply straight line method of depreciation Apply DB and DDB methods of depreciation; switch between DDB and SL methods Apply MACRS method of depreciation Select asset recovery period for MACRS

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DEPRECIATION

DEPRECIATION. DEPRECIATION:. The word “ depreciation ” is derived from Latin word Depretium . It means de means decline and pretium means price. Thus it means decrease in the value of fixed or capital assets. Definition:

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Depreciation, Impairments, and Depletion

PART II: Corporate Accounting Concepts and Issues. Lecture 13. Depreciation, Impairments, and Depletion. Instructor Adnan Shoaib. Review of Lecture 11 (LIFO at Fluctuating Prices and Subsequent adjustments). LIFO RETAIL METHODS. Fluctuating Prices—Dollar-Value LIFO Retail.

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Depreciation

Accounting Direct is a consulting firm providing the best advise for business and accounting service.

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