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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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.
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.
Background The present law composite depreciation life of 27.
PeopleSoft Asset Management: Incorporates several accounting features required by the utilities industry, including mass assets, composite depreciation processing, and gain/loss calculation.
Depreciation by component is better matching than composite depreciation.
By requiring that different functional units not be depreciated as one asset, AcSEC eliminates the option of using composite depreciation.
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.