allocate


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Allocate

On a balance sheet, to spread an expense over more than one accounting period. One of the most prominent examples of allocation is depreciation, which spreads the cost of an asset over a certain number of years.

allocate

1. To spread systematically a single monetary amount over a number of time periods, usually years. For example, depreciation allocates the cost of a capital asset over its useful life.
2. To distribute cost or revenue throughout a number of operations or products. For example, a business must decide how to allocate the costs of running its headquarters over all its operations to determine the profitability of each of those operations.
References in periodicals archive ?
The IRS concluded the taxpayer's method was not a permitted method because the taxpayer did not allocate costs to specific inventory items, thus requiring the taxpayer to use the SRM.
A Delphi team of three to seven members, typically including the engagement partner, manager, in-charge auditor, statistical or computer specialists and other pertinent personnel, votes to allocate tolerable misstatement after discussing specific aspects of the audit.
However, the deemed-allocation rules make it harder to keep track of the exemption amount used because, in some instances, returns are no longer required to allocate the GST exemption.
Using Allocate, we are able to better understand how our business units are using the network and our key servers," said Charles Colvin, network engineer, SAP America, Inc.
Congress could also allow an executor to allocate basis increases to assets held in retirement accounts, but only to the extent of the available basis increases that the executor could not have allocated to other assets.
Assuming this difference is due to handling costs, one solution is to allocate P2's excess stand-alone cost to PI and FR in a 2-to-1 ratio, the resulting proportions after eliminating P2.
Now, customers can collect, allocate and manage their costs to control their budgets.
group must directly allocate a portion of its unrelated party interest expense to foreign source income.
If an intangible asset is related to customer structure, the IRS or the courts are likely to allocate at least part of the aggregate purchase price to goodwill.
As a result, the deemed-allocation rules (which automatically allocate a transferor's GST exemption to direct skips and lifetime indirect-skip transfers) apply to split gift transfers as well.
Triarc said it had also been advised that although this is one permissible method of allocating tax basis, it may not be the only possible way to allocate tax basis.
with no cash surrender value (CSV)), it is possible (and often recommended) not to allocate any generation-skipping transfer (GST) tax exemption to the trust until after the insured dies.