Talk:Accelerated depreciation

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Accounting perspective[edit]

As of right now I believe this article is focused too much on the tax applications of accelerated depreciation with little to no mention of the financial reporting aspects of it. If no objections are presented, I plan to begin moving it in that direction.

Lordthees 13:17, 30 May 2007 (UTC)

Have at it. :) - Taxman Talk 13:20, 30 May 2007 (UTC)
I have no objection, although I'm not sure what you mean - I've always heard of it in relation to tax applications. The 'accelerated' is always in relation to something, and presumably the financial reporting standard/methodology should be the one that best reflects the 'true' depreciation. I'm aware of different methods, some of which are faster/slower than other methods (e.g. straight-line vs double-declining balance), but I don't usually hear them referred to as accelerated (since they're chosen to reflect/approximate true depreciation). But happy to hear other perspectives.--Gregalton 14:20, 30 May 2007 (UTC)
Yes, when accountants refer to accelerated depreciation methods, they refer (generally speaking) to the methods of depreciation that have higher depreciation amounts during the early years of a project's life (which for non-tax purposes basically means declining balance and sum-of-the-years-digits) Lordthees 16:37, 30 May 2007 (UTC)

This article is poorly written and referenced, from an accounting and a tax perspective. Anyone up for the task of rewriting it? For example, we don't need to introduce the concept of accelerated depreciation by defining what earnings are - otherwise, every time there was a wiki article for any expense item, we'd start with debits and credits, the accounting equation, and the basis for calculating net income.

As for accounting terms, under GAAP, accelerated depreciation methods that are acceptable are SOYD and DDB (and, in specific instances, MACRS). They are regularly referred to as "accelerated depreciation."

Lastly, there should be some discussion that ACRS is no longer permitted - and of the different accelerated methods permitted by the IRS over the years. I'm not familiar with international standards concerning AD but I'm sure that different standards are used. --CountryMama27 (talk) 04:54, 1 May 2010 (UTC)