Sentences with phrase «useful life of the asset»

With long - term debt financing, the scheduled repayment of the loan and the estimated useful life of the assets extends over more than one year.

The exact repayment term may be matched to the useful life of the asset being purchased.

Our accounting for acquisitions involves significant judgments and estimates, including the fair value of certain forms of consideration such as our common stock, preferred stock or warrants, the fair value of acquired intangible assets, which involve projections of future revenues, cash flows and terminal value which are then discounted at an estimated discount rate, the fair value of other acquired assets and assumed liabilities, including potential contingencies, and the useful lives of the assets.

Expensing: Allow businesses to immediately deduct the entire cost of a capital asset, rather than claiming depreciation deductions over the useful life of the asset.

With long - term debt financing, the scheduled repayment of the loan and the estimated useful life of the assets extends over more than one year.

Depreciation An accounting procedure that aims to distribute the cost of tangible capital assets, less any expected salvage value, over the estimated useful life of the asset in a rational and systematic manner.

The loan term should match the useful life of the asset just as you wouldn't take a 30 - year auto loan for your car, even if the payments were smaller.

* Loan maturities are based on the ability to repay, the purpose of the loan proceeds, and the useful life of the assets financed.

Many businesses choose to finance the purchase of expensive equipment to spread the cost over the useful life of the asset, making the purchase more accessible.

Different maturities are offered to meet the useful life of the asset you are financing.

The CCA allows the cost of eligible assets to be deducted for tax purposes at a rate of 50 per cent per year on a declining balance basis — which is faster than would be implied by the useful life of the assets.

Not exact matches

Because these charges relate to assets which have been retired prior to the end of their estimated useful lives and severance costs for eliminated positions, Cree does not consider these charges to be reflective of ongoing operating results.

The straight - line method of calculating depreciation would be to divide the initial cost by the asset's useful life.

In order to calculate basic depreciation, a company just needs two numbers: the initial cost of the asset and its estimated «useful life.»

We evaluate the remaining estimated useful life of our intangible assets being amortized on an ongoing basis to determine whether events and circumstances warrant a revision to the remaining period of amortization.

The Company evaluates the remaining estimated useful life of its intangible assets being amortized on an ongoing basis to determine whether events and circumstances warrant a revision to the remaining period of amortization.

The exact repayment term is usually determined by the useful life of the underlying asset or business purpose for which the loan is used.

Depending upon the nature of the equipment, its useful life, and whether or not the intention is to keep it as a long - term asset, an equipment loan could make sense for a small business.

Fair values and useful lives assigned to intangible assets were based on the estimated value and use of these assets by a market participant.

Depreciation is a method of allocating the cost of a tangible asset over its useful life.

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life.

ALBANY — Governor Andrew Cuomo vowed early in his administration to curb New York's practice of borrowing for short - term equipment purchases, arguing instead that the state should only bond for assets when their useful life is longer than the repayment term.

Operating & finance leases Operating leases are useful if the lessee needs the equipment to be updated or replaced frequently as: they run for shorter, specific periods shorter than the full economic life of the asset; the lessee is not liable for financing of the asset's full value; the lessee has use of the equipment, but not full ownership; and because the residual value belongs to the lessor.

Improving the integrity of the buildings with new roofs and windows will increase the useful life of the schools by another 35 - 50 years, according to Peter Garvey, the city's Director of Capital Assets.

Depreciation is an accounting charge that allows companies to spread the cost of a major capital asset over that asset's useful life.

A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life that extends beyond the taxable year.

Systematic charges against earnings to write off the cost of an asset over its estimated useful life because of wear and tear through use, action of the elements, or obsolescence.

Amortized account is same like depreciation account which is usedto reduce the value of intangible asset over it's useful life spanthrough income statement.

Amortized account is same like depreciation account which is used to reduce the value of intangible asset over it's useful life span through income statement.

Charges made against earnings to write off the cost of a fixed asset over its estimated useful life.

If you buy assets for your business that have a useful life of more than one year — a truck, a computer, furniture, a rototiller, whatever — those purchases are commonly characterized as capital expenses.

Gear used for the business of travel blogging would either be deductible as an expense (meaning that the entire cost would be taken in the year the item was purchased) or depreciated (meaning that the cost would be spread across a few years depending on what the IRS deems is the «useful life» of that asset).

In a world where carbon emissions will increasingly have to be constrained, coal, as the dirtiest of the fossil fuels, is the energy asset most vulnerable to becoming «stranded» — the most vulnerable, in other words, to seeing its market value collapse well ahead of its previously anticipated useful life.

But there are some cases in which the cash value component of a permanent life insurance policy can be useful (to pay off large estate costs, for instance, or as a means to pass tax - free inheritance if other assets are large enough to trigger estate taxes) and something like an indexed universal life insurance policy can come in handy.

Accountants use depreciation to expense the cost of the asset over its useful life.

Underground storage tanks can also be an issue for older multifamily assets as they have a useful life of only 15 to 20 years, resulting in multiple generations of tanks that often lack proper closure reports when replaced or during conversion to an alternative fuel source.

For assets that have an expected useful life of more than one year, you spread the cost of the asset over its estimated useful life rather than deducting the entire cost in the year you place the asset in service.

A depreciable asset is a capital expenditure in depreciable property; used in a trade or business or held for the production of income and has a definite useful life of more than one year.