Does Accumulated Depreciation Go on a Balance Sheet?

Save
Next Video:
How to Invest in Shares....5

Accumulated depreciation does not go directly on a balance sheet, but it is included in a financial statement called a depreciation schedule or appreciation schedule. Calculate accumulated depreciation based on the costs basis of the asset and the amount of time held in the asset with instructions from a registered financial consultant in this free video on finance.

Part of the Video Series: Investing & Money Management
Promoted By Zergnet

Comments

Video Transcript

This is financial adviser Patrick Munro asking the question does accumulated appreciation go on a balance sheet? The answer is yes and no. Basically accumulated appreciation goes on a separate schedule of the financial statement called a depreciation schedule or appreciation schedule, whatever the case may be. It has to be calculated based on the cost basis of the asset and the amount of time held in the asset, whatever expenses are placed against the asset as well. Then the bottom line is it's referred to is carried over the front page of the balance sheet and shows up as an entry item in the balance sheet itself. So that's why primarily there's a two factor answer to the question does accumulated appreciation go on a balance sheet. It's also noteworthy here that when you're calculating the factors especially of real estate, you have to take into appreciation the fact of prevailing market conditions which currently at the time of this taping are significantly down 20 to 25% nationwide. It makes depreciation schedule calculations very, very complex. This Patrick Munro, financial adviser, asking and answering the question does accumulative appreciation go on a balance sheet.

Featured

Related Searches

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!