Economic depreciation vs. accounting depreciation

RH123 · October 13, 2008, 6:14pm

Are we expected to calcuate economic depreciation or is it a concept… 2) what is the difference… thoughts? Thanks

tgrycner · October 13, 2008, 6:35pm

Accounting depreciation is strictly calculated on the basis of estimated useful life and asset’s consumption whereas economic dep’n would measure real usage of capital taking into account its productivity… Am I right? I don’t think we would be required to calculate it…

maratikus · October 13, 2008, 6:46pm

economic depreciation = change in market value of capital

RH123 · October 13, 2008, 11:48pm

Is this a value that could be asked to be calculated?

system · October 13, 2008, 11:53pm

Is that a difficult calculation? Beg. Value - Ending Value.