Define: Depreciable Amount

UK Accounting Glossary

Definition: Depreciable Amount


Quick Summary of Depreciable Amount


Cost of a non-current (fixed) asset minus residual value.




What is the dictionary definition of Depreciable Amount?

Dictionary Definition


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.


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Full Definition of Depreciable Amount


  • The cost of an asset, or other amount substituted for cost (in the financial statements), less it’s residual value.
  • The cost of an asset, or other amount substituted for cost, less it’s residual value.
  • The cost of an asset, or other amount substituted for cost, less it’s residual value.

Depreciable cost is calculated by subtracting the salvage value of an asset from it’s cost.


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Examples of Depreciable Amount in a sentence


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.


Depreciable Amount FAQ's


What is the depreciation cost?

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.


Cite Term


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https://payrollheaven.com/define/depreciable-amount/
Modern Language Association (MLA):
Depreciable Amount. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 22, 2019 https://payrollheaven.com/define/depreciable-amount/.
Chicago Manual of Style (CMS):
Depreciable Amount. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/depreciable-amount/ (accessed: November 22, 2019).
American Psychological Association (APA):
Depreciable Amount. PayrollHeaven.com. Retrieved November 22, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/depreciable-amount/

Definition Sources


Definitions for Depreciable Amount are sourced/syndicated from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.