free depreciation

free depreciation
A method of granting tax relief to organizations by allowing them to charge the cost of fixed assets against taxable profits in whatever proportions and over whatever period they choose. This gives businesses considerable flexibility, enabling them to choose the best method of depreciation depending on their anticipated cash flow, profit estimates, and taxation expectations.

Accounting dictionary. 2014.

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  • free depreciation — A method of granting tax relief to organizations by allowing them to charge the cost of fixed assets against taxable profits in whatever proportions and over whatever period they choose. This gives businesses considerable flexibility, enabling… …   Big dictionary of business and management

  • Depreciation — Not to be confused with Deprecation. Depreciation refers to two very different but related concepts: the decrease in value of assets (fair value depreciation), and the allocation of the cost of assets to periods in which the assets are used… …   Wikipedia

  • depreciation — The amount by which a fixed asset s accounting or book value is periodically reduced to reflect the fact that the economic value of the asset is steadily reduced by a combination of wear and tear from use, age, and/or obsolescence. The offsetting …   Financial and business terms

  • Depreciation — A non cash expense that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring Long term assets over the useful life of the assets. The New York Times Financial Glossary * * * US… …   Financial and business terms

  • free cash flows — cash not required for operations or for reinvestment. Often defined as earnings before interest (often obtained from the operating income line on the income statement) less capital expenditures less the change in working capital. In terms of a… …   Financial and business terms

  • Free cash flow — In corporate finance, free cash flow (FCF) is a cash flow available for distribution among all the security holders of a company. They include equity holders, debt holders, preferred stock holders, convertibles holders, and so on.There are two… …   Wikipedia

  • free cash flow — A measure of the cash that a company is generating or consuming. Free cash flow is often defined as after tax operating profit less net capital expenditure: free cash flow = revenues – operating expenses + depreciation – taxes – capital… …   Accounting dictionary

  • free cash flow — A measure of the cash that a company is generating or consuming. Free cash flow is often defined as after tax operating profit less net capital expenditure: free cash flow = revenues operating expenses + depreciation taxes capital expenditure… …   Big dictionary of business and management

  • Free Cash Flow - FCF — A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base …   Investment dictionary

  • free cash flow — noun Net income plus depreciation and amortization, less changes in working capital, less capital expenditure. Free cash flow can be very negative for profitable, fast growing businesses and very positive for unprofitable, declining ones …   Wiktionary

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