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