Additional Depreciation Reserve

Additional Depreciation Reserve

Additional depreciation reserve

It is important to distinguish between 'Depreciation written off' (accumulated depreciation deducted from cost of fixed assets) appearing on the assets side, which represents the cost of wear and tear, i.e., the use of the machinery, plant, etc., and 'Additional depreciation reserve'. The latter is a saving from the taxed profits to provide against increased renewal costs of plant, etc., brought about by inflation.

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International Publishing Corporation:: The world's largest publishing organisation con-trolling over 200 newspapers, magazines and periodicals including the Daily Mirror. Dominant place in women's magazine market and trade journal field. Website and directory publishers.