image missing
HOME SN-BRIEFS SYSTEM
OVERVIEW
EFFECTIVE
MANAGEMENT
PROGRESS
PERFORMANCE
PROBLEMS
POSSIBILITIES
STATE
CAPITALS
FLOW
ACTIVITIES
FLOW
ACTORS
PETER
BURGESS
SiteNav SitNav (0) SitNav (1) SitNav (2) SitNav (3) SitNav (4) SitNav (5) SitNav (6) SitNav (7) SitNav (8)
Date: 2024-10-11 Page is: DBtxt001.php list0300-Depreciation-1

Definitions for TrueValueMetrics
Depreciation

Depreciation. Depreciation brings together both an economic reality and an accounting principle. Some things last for a long time, some last for less time. The time they last and can function economically is the economic life of the thing. The cost when the thing is new is the acquisition cost, but the cost or using this thing in any period is the acquisition cost divided by its economic life.

Depreciation in business accounting. In general, depreciation is use throughout business accounting.

The starting point of economic life is common ... but there are substantial instances where tax law has intervened to change the economics of investment ... and many instances where depreciation accounting is driven by tax considerations more than by economic, accounting and technical realities.

Depreciation is also accounted for incorrectly from the economic and technical perspective when the asset base is used for calculation of the maximum allowable pricing of products and services ... this eventually ruined the old AT&T (Ma Bell telephone company) ... and is doing something similar in the FORGOTTEN THE EXAMPLE FOR THE MOMENT!



The text being discussed is available at
SITE COUNT<
Amazing and shiny stats
Blog Counters Reset to zero January 20, 2015
TrueValueMetrics (TVM) is an Open Source / Open Knowledge initiative. It has been funded by family and friends. TVM is a 'big idea' that has the potential to be a game changer. The goal is for it to remain an open access initiative.
WE WANT TO MAINTAIN AN OPEN KNOWLEDGE MODEL
A MODEST DONATION WILL HELP MAKE THAT HAPPEN
The information on this website may only be used for socio-enviro-economic performance analysis, education and limited low profit purposes
Copyright © 2005-2021 Peter Burgess. All rights reserved.