UK Accounting Glossary
Cost of a non-current (fixed) asset minus residual value.
The Depreciable Amount (also known as the basis for depreciation) is the cost of an asset, or other amount substituted for cost (in the financial statements), minus it’s residual value.
Depreciable cost is calculated by subtracting the salvage value of an asset from it’s cost.
By year three, £16,000 has been written off, 80% of the depreciable amount for the car.
That amount, £225, represents it’s cost and is the depreciable amount for tax purposes if the unit is eligible for tax depreciation.
The depreciable amount (cost less expected proceeds from disposal) of an item of property, plant or equipment should be allocated on a systematic basis over the course of its useful life.
The loss is calculated as the value of the un-reimbursed costs of the preparatory work done less the depreciated amount.
Adjustments for depreciation to the amount claimed have been made in accordance with the corresponding statutory regulations.
Depreciated cost is the remaining cost of an asset after the related amount of accumulated depreciation has been deducted from it.
In essence, it is the residual amount of an asset that has not yet been consumed.
The formula for depreciated cost is: Acquisition cost – Accumulated depreciation = Depreciated cost.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Depreciable Amount are sourced/syndicated from:
This glossary post was last updated: 23rd December 2018.