The site of the Berlin Wall. The Berlin Wall came down 20 years ago, but few of the news stories marking the anniversary have explained the event's full significance. The Cold War had been raging for 14 years before the wall went up on Aug. 13, 1961.
Depreciation Defined. Depreciating an asset means allocating the asset's cost over its useful life. The useful life of an asset, or economic resource, is the period of time over which a company intends to use this asset in operating activities or manufacturing processes. Funded Depreciation Defined. Funded depreciation is a fixed asset management method that helps a company set aside funds to renew machinery and equipment that it uses in operating activities. For instance, a company buys a new truck valued at $100,000 and records $10,000 in annual depreciation expense over 10 years.
For financial reporting purposes, the two most popular methods of accelerated depreciation are the double declining balance method and the sum-of-the-yearsâ digits method. For tax purposes, the allowable methods of accelerated depreciation depend on the tax law that the taxpayer is subject to.In the United States, the two currently allowable depreciation methods for tax purposes are both accelerated depreciation methods (ACRS and MACRS).or example, accelerated depreciation is used in some countries to encourage investment in renewable energy. Further, governments have increased accelerated depreciation methods in time of economic stress (in particular, the US government passed laws after 9-11 to further accelerate depreciation on capital assets).