depreciation reserve


Also found in: Financial.

depreciation reserve

n. 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.

References in periodicals archive ?
The settlement also allows FPL to amortize up to $1 billion of depreciation reserve surplus plus any excess depreciation reserve surplus remaining under the 2012 Rate Order so as to earn a regulatory ROE of 9.
Provisions for Depreciation Reserve Fund (DRF) and Development Fund had to be reduced substantially.
Noting the public transporter's economic crunch, CAG said lack of sufficient money in depreciation reserve fund (DRF) to replace the overaged assets indicates its "poor financial health".
The expense facts do not include interest on international loans and the Rs40 billion over draft drawn from the State Bank of Pakistan (SBP), appropriation to depreciation reserve fund besides repayment of overseas loans on replacement and capital accounts.
168(i)1(e)(3)(iii)(B), the GAA treatment for the asset terminates as of the first day of the tax year in which the qualifying disposition occurs; the GAA's unadjusted depreciable basis is reduced by the asset's unadjusted depreciable basis (as of the first day of the tax year); and the GAA's depreciation reserve is reduced by the allowable depreciation of the asset (as of the end of the tax year immediately preceding the year of disposition).
in the case of the first two, instead of crediting the asset with depreciation directly, thereby reducing the amount on the particular account, it has been found advisable to leave the purchase value intact during the whole life of the asset and to create a depreciation reserve account that is credited and revenue debited with the amount of depreciation, with the net amount shown on the balance sheet.
22,000 crore while appropriation to Depreciation Reserve Fund to Rs.
After providing `5,700 crore and `14,500 crore for depreciation reserve fund and pension fund, respectively, in the revised estimates, the total working expenses are likely to be `87,200 crore.
The Board of Directors establishes a unified formula for annually a) allocating funds to a depreciation reserve to address future maintenance needs and b) for a scholarship fund to support campers who can't pay the fees.
The trust instrument requires the trustee to build up a depreciation reserve at the rate of $12,500 per year; the building will go to Smith's son, Albert, when the trust terminates at the end of 12 years.
Fitch anticipates FPL's credit metrics to weaken in 2012 as a result of base rate freeze implemented in the 2010 settlement agreement and use of surplus depreciation reserve to achieve targeted ROE range.
the Verve Group disguised its true financial position in management accounts by posting losses on individual case sales to a vehicle depreciation reserve, which totalled 7,498,695 at the date of administration, and not making corresponding debit entries within the Companys management accounts (profit and loss).