What is recoverable depreciation?

What the different between provision of depreciation and accumulated depreciation?

• what the different between provision of depreciation and accumulated depreciation?

• Answer:

  The first, I presume is the provision ( for ),made in a year, by your accountant for the expected depreciation of assets on the businesses books, it is simply a way of seeing the expected year end results, in order to assess the amount of costs related to an item, and work out what must be set aside from income to meet this replacement value, or avoid paying taxes on. A balance sheet lists asset depreciation after the year end, ( but may give additional information for the following trading period,but it is not needed if the assets are ones not traded by the company ), this is listed as asset value, less depreciation, giving the result as a figure for "net value" after depreciation, unless this asset is one that is traded in by a business it is simply listed under the particular type of asset it relates to, such as plant, or property re-evaluations, paper, and office supplies are not listed seperately, but only as a group total, and consumables are not listed at all, It is usually done by a cost/management accountant , who deals with the future accounting period. The second, is the actual depreciation, as measured by the actual loss in value of an item, this is recorded in arrears, by the normal type of accountant, and represents the total, or accumulated loss of value of an item or a group of items, in that fiscal period, most accountants are of the second type, and deal with the accounts "history", rather than the future periods that a management accountant does....