economic depreciation

Economic depreciation over a given period is the reduction in the remaining value of future services.

Economic Depreciation - loss in value due to location.

Because economic depreciation is difficult to determine, the deductions for capital assets reported by companies in their financial statements are often used as a substitute.

The economic depreciation rate is based on observations of the average selling prices of assets at different ages.

By 1894, Victoria, feeling the affects of economic depreciation, saw the prize money reduced and a trophy no longer awarded.

In the US, the highest effective rate is on buildings, reflecting a large gap between tax and economic depreciation rates.

The economic depreciation rates used in this study are based on analytical work undertaken at Statistics Canada over the last several years.

However, financial statement depreciation may differ from economic depreciation.

This allowance explicitly departed from the principle of allowing deductions for true economic depreciation.

Economic depreciation rates are calculated on the basis of the observed average market prices that depreciated assets at different ages actually sell for.

As market value is not the basis for property assessment, there is no deduction for economic depreciation.

Finally, differences between CCA and economic depreciation may also result from the treatment of dispositions.

A firm’s user cost of capital is the sum of the total pre-tax return to shareholders plus economic depreciation.

This annuity is called the economic depreciation:

Furthermore, the measured difference between economic depreciation and actual depreciation charges will either add or lower the magnitude of total surplus value.

There are instances when differences between the deductions for tax purposes and economic depreciation would not accurately reflect the tax expenditure.

The depreciation allowable for tax purposes is called capital cost allowance. It may differ from true economic depreciation.

Economic depreciation in telecommunications cost models, with Henry Ergas and John Small.

Depreciation estimates are based on the definition of economic depreciation or the loss in fair market value of the capital assets.

These latter, longer lives approximate "economic depreciation," a concept economists have used to determine the actual life of an asset relative to its economic value.

We propose a general review of capital cost allowances to ensure that rates are closer to economic depreciation, along with a reduction in some accelerated classes.

A recapture, therefore, occurs when the CCA rate overestimated the true economic depreciation of the asset’s value.

For example, the deductibility of labour costs or economic depreciation of business assets in determining business income would not be considered a tax expenditure.

For more than one-half of the assets evaluated in the study, the null hypothesis of a constant rate of economic depreciation was not rejected.

Common Tax Base, Following True Economic Depreciation.