Depreciation

Depreciation allowance Repairs and maintenance

For a bakery wages, rent, insurance, depreciation,...

Obsolescence and depreciation

Annex detailed data and parameters of the case study n 5

The costs of providing these services will be treated as intermediate consumption and rents will be net of these.

Normally, these figures will only change if the machine is disposed of before 31.12.2002.

Generators were depreciated according to the following categories

Using straight line financial depreciation, the value of the asset is completely written off in equal parts over its expected life.

Depreciation and maintenance of equipment Salary of the specific personnel

Depreciation and maintenance of facilities Salary of the specific personnel

Generators have been depreciated according to the following scale (a) new generators, 10 per cent depreciation (b) deployed generators, 10 per cent depreciation and (c) 5 kVA and below, 20 per cent depreciation.

(b) Scale 1 10 per cent depreciation.

(c) Scale 2 20 per cent depreciation.

(d) Scale 3 60 per cent depreciation.

For example, the raw materials are usually variable direct manufacturing and eventually controllable cost.

Notional (calculatory) depreciation is replacement value divided by expected asset life

Generally speaking, the cash flow consists of the net profit plus deprecia tion.

Co operative expenditures Wages taxes on wages Purchase of consumable Depreciation Transportation, etc. Overheads

It is important to note that no depreciation will be charged after 31.12.2002 even if the machine remains in (profitable) use nor will the annual depre ciation be affected by inflation, unless required by the tax authorities.

Depreciation me thods must be disclosed in the annual report.

Operating Profit Depreciation Change in net trading assets Taxation Capital expenditures Dividends Other

Depreciation For those who are not familiar with this term, depreciation is related to investments.

Accumulated depreciation at end of year Net book value at end of year

Economic asset life s the period in which the asset's benefits exceed its costs.

Vehicles received from the other missions were depreciated on the basis of their residual value at the time of receipt.

Some mortgages even had negative amortization payments did not cover the interest due, so every month the debt grew more. Fixed mortgages, with interest rates at 6 , were replaced with variable rate mortgages, whose interest payments were tied to the lower short term T bill rates.

Some mortgages even had negative amortization payments did not cover the interest due, so every month the debt grew more.

Tax credits or accelerated depreciation lower firms cost of investing and therefore raise the after tax return on investment.

An alternative, shown in the microeconomic approach of the Canberra Group, is to include it within property income the choice is more one of presentation than substance, the important thing being that it is included somewhere in the account leading to total and disposable income.

Equipment received from other missions was depreciated on the basis of residual value at the time of receipt, but with a life expectancy of seven years.

Depreciation in any one year is thus the average gross asset value (replacement value) during the year divided by the expected total years of life of the asset.

But depreciation involves predicting the future and is therefore usually inaccurate because

In the US, investment spending declined from 23.6 of GDP in 1990 to 19.3 in 2013, and fell even more markedly in net terms (gross investment excluding capital depreciation).

Gross profits, net gains, salaries, interest charges... dividend payments, accrued income, fixed income, amortization... and Page 172,173,174,175... all the way through to Page 190

If in 2003 the machine is still in use, notional depreciation will still be charged, usually based on the latest replacement values but using the now established 7 year life to pre serve continuity.