straight-line method

A method of calculating the amount by which a fixed asset is to be depreciated in an accounting period, in which the depreciation to be charged against income is based on the original cost or valuation, less the asset's estimated net residual value, divided by its estimated life in years. This has the effect of a constant annual depreciation charge against profits year by year. In some circumstances the net residual value is ignored.

Accounting dictionary. 2014.

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  • straight-line method — UK US noun [S] ACCOUNTING ► a way of depreciating (= reducing the value of) a fixed asset in a company s accounts, in which the asset s value is reduced by the same amount each year. This amount is equal to the asset s value when you can no… …   Financial and business terms

  • straight line method — ➔ method …   Financial and business terms

  • straight-line method — n. A method for figuring depreciation of an asset by subtracting the anticipated salvage value, and then dividing the remainder by the estimated number of years of its usefulness. Webster s New World Law Dictionary. Susan Ellis Wild. 2000 …   Law dictionary

  • straight-line method — noun (accounting) a method of calculating depreciation by taking an equal amount of the asset s cost as an expense for each year of the asset s useful life • Syn: ↑straight line method of depreciation • Topics: ↑accounting • Hypernyms:… …   Useful english dictionary

  • straight-line method — A method of calculating the amount by which a fixed asset is to be depreciated in an accounting period, in which the depreciation to be charged against income is based on the original cost or valuation, less the asset s estimated net residual… …   Big dictionary of business and management

  • straight-line method of depreciation — noun (accounting) a method of calculating depreciation by taking an equal amount of the asset s cost as an expense for each year of the asset s useful life • Syn: ↑straight line method • Topics: ↑accounting • Hypernyms: ↑depreciation, ↑ …   Useful english dictionary

  • straight line — ˌstraight ˈline adjective ACCOUNTING the straight line method of calculating depreciation (= fall in value) on an asset involves dividing the original cost of the asset, less its value as scrap, by the number of years it is expected to be used.… …   Financial and business terms

  • straight–line — adj: marked by equal payments over a given term using the straight–line method of depreciation Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • straight line depreciation — /streɪt laɪn dɪpriɪʃiˌeɪʃ(ə)n/ noun depreciation calculated by dividing the cost of an asset, less its remaining value, by the number of years it is likely to be used COMMENT: Various methods of depreciating assets are used; under the ‘straight… …   Marketing dictionary in english

  • straight-line depreciation — A method of deducting the cost of a business asset by deductions in equal annual amounts. The period of time is specified by the Internal Revenue Code for different categories of assets, typically from three to 39 years. Category: Business, LLCs… …   Law dictionary

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