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General Accounting Discussions: difference between depriciation.amortaisation and deplation

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    • CommentAuthortaknevt
    • CommentTimeJul 24th 2007
     
    can any please diffrentiate the above words.......
    Thankful People: hangdang
    • CommentAuthorchris
    • CommentTimeJul 24th 2007
     
    Depreciation: It is the gradual and permanent decrease in the value of tangible (i.e. physical assets)caused by reasons such as wear & tear,erosion of the asset...

    Depletion: It is the decrease (permanent) in the value of land as a measure of its erosoin overtime and wear & tear.

    Amortization: It is the gradual decline in the value of Intangible assets such as Copyrights,Goodwill...

    The main difference between the three is just their usage:
    Deprciation is used for tangibles
    Depletion is used for Land
    Amortization is used for Intangible Assets

    Plz do get back in case of any problems
    Bye Taknevt.
    Thankful People: carol4u79
    • CommentAuthortaknevt
    • CommentTimeJul 25th 2007
     
    Thanks for your cooperation.

    what you send regarding depriciation is correct, but please look in to th e following...

    Deplation is the process of decreasing the value of assets like..coal, mines,quaries...

    Amortization is the process of decreasing or accounting for an amount over a period of time. Amortization is the allocation of a lump sum amount to different time periods, particularly for loans and other forms of finance, including related interest or other finance charges,and expences like instalation of business..

    is it correct, if any comments please replay...
    • CommentAuthorharry
    • CommentTimeJul 26th 2007
     
    i am kind of going to deviate from your questions but what do you guys know about the methodsof calculating depreciation
    • CommentAuthorCounter
    • CommentTimeAug 1st 2007
     
    Some of the various types of depreciation are listed in one of the Q&A on AccountingCoach.com. Go to the tab "Q&A" and then select "Depreciation." One of the questions asked about the various methods of calculating depreciation.
    • CommentAuthorfarrukh
    • CommentTimeAug 3rd 2007
     
    Deprciation charge on tangible Assets
    Depletion charge on Natural recourse Assets (Oil Field,coils etc)
    Amortization charge on Intangible Assets ( Goodwill, Trade Mark, Deferred Cost)

    is it correct, if any pls reply be appreciated.
    by smartgoals.

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