depreciation fund

depreciation fund depreciation fund fund1

* * *

depreciation fund UK US noun [C]
ACCOUNTING, FINANCE an amount of money that a company has available to buy new assets. It comes from the investment of a sum equal to the depreciation allowance for its existing assets: »

The director maintains a depreciation fund for the purchase of replacement vehicles and additions to the fleet.


Financial and business terms. 2012.

Look at other dictionaries:

  • fund — A fiscal and accounting entity with a self balancing set of accounts in which cash and other financial resources, all related liabilities and residual equities, or balances, and charges therein, are recorded and segregated to carry on specific… …   Financial and business terms

  • depreciation — de·pre·ci·a·tion /di ˌprē shē ā shən/ n 1: any decrease in the value of property (as machinery) for the purpose of taxation that cannot be offset by current repairs and is carried on company books as a yearly charge amortizing the original cost… …   Law dictionary

  • depreciation reserve — A business fund in which the probable replacement cost of equipment is accumulated each year over the life of the asset, so it can be replaced readily when it becomes obsolete and totally depreciated. Category: Business, LLCs & Corporations →… …   Law dictionary

  • Fund Accounting — is an accounting system often used by nonprofit organizations and by the public sector. OverviewBecause there is no personal profit motive for owners or members of nonprofit organizations and organizations in the public sector, such as… …   Wikipedia

  • depreciation — /dapriyshiyeyshsn/ In accounting, spreading out the cost of a capital asset over its estimated useful life. Depreciation expense reduces the taxable income of an entity but does not reduce the cash. A decline in value of property caused by wear… …   Black's law dictionary

  • depreciation — /dapriyshiyeyshsn/ In accounting, spreading out the cost of a capital asset over its estimated useful life. Depreciation expense reduces the taxable income of an entity but does not reduce the cash. A decline in value of property caused by wear… …   Black's law dictionary

  • depreciation reserve —    A business fund in which the estimated replacement cost of equipment is accumulated each year over the life of an asset, so that it can be replaced readily when it becomes obsolete …   Business law dictionary

  • sinking fund — Assets and their earnings earmarked for the retirement of bonds or other long term obligations. An obligation sometimes imposed pursuant to the issuance of debt securities or preferred shares by which the issuer is required each year to set aside …   Black's law dictionary

  • Universal Service Fund — The Universal Service Fund (USF) was created by the United States Federal Communications Commission in 1997 to meet the goals of Universal Service as mandated by the Telecommunications Act of 1996. The 1996 Act states that all providers of… …   Wikipedia

  • Operating income before depreciation and amortization — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.