PPT-Depreciation

All manufactured items decrease in value over time as they wear out or are replaced by better technology This is called depreciation This is regarded as an expense The loss in value of an item can only be estimated as the real cost is only known when the item is sold. How to use CAMS. To provide control of and accountability of fixed assets.. To orderly monitor the physical condition of fixed assets.. To gather information needed for the preparation of management and financial reports.. Reference sections: 123(2) and Schedule II. . PART-A. 1- Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value. The useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of production or similar units expected to be obtained from the asset by the entity. http://www.investopedia.com/terms/d/depreciation.asp. Depreciation. Buildings, machinery, equipment, furniture, fixtures, computers, outdoor lighting, parking lots, . cars, and . trucks are examples of . Revenue Canada . for tax purposes. Depreciation itself is a non-cash expense; consequently, it is only relevant because it affects taxes. Depreciation tax shield = DT. D = depreciation expense. T = marginal tax rate. . Self-Employed. Business Income Schedule C. “A fine is a tax for doing something wrong. . A tax is a fine for doing something right.”. -- Anonymous. LO #1- Income and Expenses of the Self-Employed. Chapter . 12. Accrued depreciation. Age-life method. Book value. Capitalized income method. Cost basis. Cost-to-cure method. Curable depreciation. Curable postponed. Current-value accounting. Deferred maintenance. in Accrual Accounting. . G.vijaya. . kumar. . Prof.nac. Introduction:. . Schedule XIV has been replaced with schedule II for depreciation calculation. EGN . 3615. ENGINEERING ECONOMICS . WITH SOCIAL AND GLOBAL IMPLICATIONS. 1. Engineering Economics and.... Chapter Outline. Basic Aspects of Depreciation. Straight-Line Depreciation. Declining Balancing. Asst.Prof. Dr. Panchat Akarak. p.thipnew1@hotmail.com. School of Accounting . Chiang Rai Rajabhat University. Adjusting . the Accounts . -Accrual Basis. -Errors Recorded. -Financial information Quality . 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. Chapter . 12. Accrued depreciation. Age-life method. Book value. Capitalized income method. Cost basis. Cost-to-cure method. Curable depreciation. Curable postponed. Current-value accounting. Deferred maintenance. 3615. ENGINEERING ECONOMICS . WITH SOCIAL AND GLOBAL IMPLICATIONS. 1. Engineering Economics and.... Chapter Outline. Basic Aspects of Depreciation. Straight-Line Depreciation. Declining Balancing. Modified Accelerated Cost Recovery System (. except. the following :-. Forests, plantations and similar regenerative natural resources; . Wasting assets including expenditure on the exploration for and extraction of minerals, oils, natural gas and similar non-regenerative resources; . Jung-woo Sohn (. jzs177@psu.edu. ) . Announcements:. No class on next Thursday (December 11. th. ). Instead, we will have a class time on Wednesday evening (December 10. th. ). Around 6pm?. Topic: Final review.