book depreciation

Book Depreciation

A depreciation method based on the accounting method a company uses. That is, book depreciation is used for a company's internal and external accounting reports. It contrasts with tax depreciation, the method used to conform to the rules of the relevant tax agency.

book depreciation

The amount of depreciation expenses deducted for a property on the books and records of a company.Book depreciation may be charged at a faster or slower rate than allowed by the IRS,in order to provide management with a realistic view of the gradually diminishing value of the company's assets.

References in periodicals archive ?
The agency would be required to determine the fair market value of "the integrated utility system" by calculating its "modified net book value" by deducting the "accumulated book depreciation of the asset" or depreciation equal to 80 percent of the original cost of the asset, whichever is lower.
Exhibit 1: Depreciation allocation in Example 1, Scenario 1 A B Partnership 704(b) Tax 704(b) Tax 704(b) Tax Capital account, 500 300 500 500 1,000 800 1/1/12 Step 3: Allocate (25) (25) (50) book depreciation according to Sec.
This is the difference between tax depreciation ($100,000) as compared to book depreciation ($20,000).
Most companies use the lives authorized for tax depreciation for the book depreciation, thus avoiding deferred tax entries.
Accordingly, the taxable income allocated to the Dutch banks was greater than their book allocation by the amount of book depreciation for that year.
With regard to the second summation, they write: "The second term, relating to book depreciation is not so easily interpreted.
Also reported here, and separately identified, is any difference in depreciation to the extent book depreciation exceeds tax depreciation.
We also demonstrate that the value of the DTL is not equal to the present value of future deferred tax expenses because the value of the DTL only depends on cash flows associated with tax depreciation, whereas the changes in the DTL depend on both tax and book depreciation.
Resistance is strong to the proposal to remove allowances for investment in plant and machinery in excess of book depreciation.
The remaining portion of th partnership's book basis ($150) will be depreciated over the new recovery perio of 10 years, for total annual book depreciation of $25 (tax depreciation $10 plus additional depreciation of $15) The book depreciation would be allocated $12.
Features include: an pull-down menu system; support of all depreciation methods including ACRS and MACRS and those for pre-ACRS assets, book depreciation, or amortizable assets; unlimited number of companies to maintain depreciation schedules for; unlimited number of assets for a company; up to five depreciation calculations possible for each asset entered; user-determined number of methods and descriptions for each method when creating a depreciation file; calculation of monthly, annual, next-year's, prorated, short-year and projected depreciation; automatic application of listed property limitations and the provisions of the mid-quarter convention where appropriate; a wide variety of reports; and more.
The Company believes Adjusted EBITDA facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structure (affecting relative interest expense), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses) and the age and book depreciation of facilities and equipment (affecting relative depreciation expense).