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 ?
1060, which requires buyers and sellers of a going business to allocate values to the various assets exchanged according to the residual method.
It is essential to be aware that a rental agreement that states only when rent is payable does not specifically allocate rent within the meaning of the regulations.
Recent audit activity indicates the IRS will require taxpayers to use one of the simplified methods (SPM or SRM) when it determines that a taxpayer is using a facts-and-circumstances method that does not allocate costs to specific inventory items.
Compensation expense if the company allocates the dividends to participants' accounts or if it pays them to participants out of a suspense account.
affiliated group must allocate interest as a fungible expense on the basis of its worldwide assets.
Thus, without a consistency requirement, a trustee's decision to allocate capital gain from year to year could be purely tax-motivated.
An allocation method that reflects benefits received from the group effort is one that allocates joint costs in direct proportion to a segment's actual cost savings.
partnerships is their ability to allocate items of income, gain, loss and deduction among the partners in ratios that differ from those in the partners' capital accounts.
European and other delegations at the International Telecommunications Union's (ITU) World Radio Conference (WRC) to allocate 455 MHz of unlicensed spectrum in the 5-GHz band for global WLAN use.
Enerwise allocates electricity, HVAC, and natural gas charges back to all of Easton's tenants on a monthly basis.
In their submissions with the request for technical advice, the agent and the taxpayer disagreed about how the taxpayer allocates cost pools under this system.
The act allocates trust receipts and disbursements between principal and income (CPC secs.