Back at the face of the salt mine...
Apr. 6th, 2005 09:06 amI pressed on last night and finished the text of the accounting job at around 11:15 pm, at which point my DSL connection went belly up (I suspect our ISP's DNS support went south, since the signal was there, but no names could be resolved). I figured this was the Great Bit Bucket™'s way of telling me to knock it off for the night, which I did.
I tossed and turned for, it seems, ever before finally falling asleep this morning. Fortunately, the cat decided to wake me up late, at around 5:45 am, instead of the more fashionable 2:45 am. I tried to go back to sleep, but couldn't.
I posed yesterday's translation question on ProZ, hoping for a miracle, but there's been no joy so far. I did run across a web page on basic accounting concepts hosted at Washington State University that distinguishes "accounting depreciation" from "economic depreciation," as follows:
Meanwhile, back at the ranch...
...it's acoustics day!
I better hop to it.
Cheers...
I tossed and turned for, it seems, ever before finally falling asleep this morning. Fortunately, the cat decided to wake me up late, at around 5:45 am, instead of the more fashionable 2:45 am. I tried to go back to sleep, but couldn't.
I posed yesterday's translation question on ProZ, hoping for a miracle, but there's been no joy so far. I did run across a web page on basic accounting concepts hosted at Washington State University that distinguishes "accounting depreciation" from "economic depreciation," as follows:
Definition of depreciation can be divided into categories, economic depreciation and accounting depreciation (refer to Alexis, Henry Ergas, John Small, 1999). The basic conceptual difference between them is that economic depreciation involves a process of valuation, while accounting depreciation deals with allocation.This sounds like it's more on the right track, i.e., non-commercial entities don't allocate depreciation; instead, the asset's market value changes (and goes down as the income expected over the rest of its useful life decreases). I have a little time to mull that over, and will.
Economic depreciation can be defined simply as the period-by-period change in the market value of an asset. The market value of an asset is equal to the present value (see Module 3) of the income that the asset is expected to generate over the remainder of its useful life. In contrast, accounting depreciation reveals the decrease in market value of an asset over a period of time.
Meanwhile, back at the ranch...
...it's acoustics day!
I better hop to it.
Cheers...