Composite depreciation

Composite depreciation

Method of depreciation where a single average depreciation rate is applied to a group of dissimilar assets with different service lives. See also Group depreciation.
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The 2019 water revenue requirement has been reduced to reflect a decrease of approximately $7 million in depreciation expense, compared to the adopted 2018 depreciation expense, due to a reduction in the overall composite depreciation rates based on a revised study filed in the general rate case.
American States Water says CPUC approves new water rates
Composite depreciation is a method that entails grouping property items and applying an average estimated useful life to each asset group for depreciation purposes.
Given the relative ease with which inexpensive accounting software can track depreciation for individual assets, however, composite depreciation is not as attractive an alternative as it once was, which may explain its rare usage today.
Use of 'composite' (or 'group') versus 'component' and 'unit' depreciation
The matrix is insufficient for conveying stresses to filaments, which aren't being bound up between each other with the matrix, and that is the reason for the composite depreciation.
The influence of the manufacturing process on the mechanical characteristics of composite materials reinforced with fiber
Background The present law composite depreciation life of 27.5 years for apartments may be too long.
Tax policy
By requiring that different functional units not be depreciated as one asset, AcSEC eliminates the option of using composite depreciation. With composite depreciation, the average useful life of the different assets in a group is calculated and the group's assets are depreciated over that average life.
Property, Plant, and Equipment: new accounting rules introduced by AcSEC
The combination of: (1) the existing capital gains taxes; (2) a depreciation recapture rate of 25 percent; and (3) a composite depreciation life of 27.5 years for new and used apartment investment have led to a steady decline in the number of apartments available to meet the nation's housing demand.
Apartment Organizations Release 2001 Legislative Priorities

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