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.