Fully Depreciated Asset
In reality, it is difficult to predict the useful life of an asset, so depreciation expenses represents only a rough estimate of the true amount of an asset used up each year. Conservative accounting practices dictate that, when in doubt, it is more prudent to use a faster depreciation schedule so that expenses are recognized earlier. In that way, if the asset does not live out the expected life, the company does not incur an unexpected accounting loss. Due to these factors, it is not unusual for a fully depreciated asset to still be in good working order and producing value for the firm.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
fully depreciated — An asset that has already been charged with the maximum amount of depreciation allowed by the IRS for accounting purposes. Bloomberg Financial Dictionary … Financial and business terms
Charitable contribution deductions in the United States — Charitable contribution deductions for United States Federal Income Tax purposes are defined in section 170(c) of the Internal Revenue Code as contributions to or for the use of certain nonprofit enterprises. See 26 U.S.C. § 170(c).… … Wikipedia
Gross domestic product — GDP redirects here. For other uses, see GDP (disambiguation). Not to be confused with Gross national product or Gross domestic income. CIA World Factbook 2005 figures of total nominal GDP (top) compared to PPP adjusted GDP (bottom) … Wikipedia
Air Europe — was a wholly privately owned, independent British airline, established in 1978 under the working title Inter European Airways.cite book| author=Simons, Graham M. | title=It was nice to fly with friends! The story of Air Europe | publisher=GMS… … Wikipedia
Absolute Physical Life — The length of time that it takes for an asset takes to become fully depreciated, at which time it provides no additional use. The absolute physical life is often taken into consideration when companies purchase assets. The measure is typically… … Investment dictionary
Residual value — is one of the constituents of a leasing calculus or operation. It describes the future value of a good in terms of percentage of depreciation of its initial value.Example: A car is sold at a list price of $20,000 today. After a usage of 36 months … Wikipedia
Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… … Universalium
Depreciation — Not to be confused with Deprecation. Depreciation refers to two very different but related concepts: the decrease in value of assets (fair value depreciation), and the allocation of the cost of assets to periods in which the assets are used… … Wikipedia
United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… … Universalium
Capital gains tax in Australia — Capital Gains Tax (CGT) in Australia applies to the capital gain made on disposal of any asset, except for specific exemptions. The most significant exemption is the family home. Rollover provisions apply to some disposals, one of the most… … Wikipedia