Gq uk may 2014 pdf

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Generally the cost is allocated, as depreciation expense, among the periods in which the asset is expected to be used.

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This expense is recognized by businesses for financial reporting and tax purposes.

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For example, a depreciation expense of 100 per year for five years may be recognized for an asset costing 500.

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Businesses depreciate long-term assets for both tax and accounting purposes.

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