Accelerated depreciation is any depreciation method that allows you to recognize higher depreciation costs in previous years.
The main methods of accelerated depreciation are the double declining balance method and the sum of annual digits (SYD) method.
Accelerated depreciation differs from straight-line depreciation, where depreciation costs are spread evenly over the life of an asset.
Companies can use accelerated depreciation for tax purposes as these methods result in a deferral of tax liability as income in earlier periods is lower.
Accountability is the acceptance of responsibility for one’s actions. This implies a willingness to be transparent, allowing others to observe and evaluate their work.
Accounting policies are the procedures a company uses to prepare financial statements. Unlike accounting principles, which are rules, accounting policies are the standard for following those rules.
Acquisition accounting is a set of formal guidelines describing how the acquirer should report the assets, liabilities, non-controlling interests and goodwill of the acquired company.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.