Depreciable Cost
Accounting glossary · Understand, connect, apply
Depreciable cost, often called depreciable amount, is an asset’s cost or other relevant measurement basis less its estimated residual value.
Example
A $9,000 machine with an estimated $1,000 residual value has an $8,000 depreciable amount.
Remember the difference
Depreciable amount is not the same as the carrying amount remaining after depreciation has already been recorded.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
← Return to the accounting glossary