depreciable amount

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The value of a fixed asset used as the basis for calculating the depreciation charge for the period. When using the diminishing-balance method of depreciation, the depreciable amount is the book value of the asset at the end of the previous financial period. However, when the straight-line method of depreciation is used, the depreciable amount is based on cost, or alternatively on valuation, if the asset has been subject to revaluation at some prior stage.

Subjects: Accounting.

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