Читать книгу Corporate Finance For Dummies - Michael Taillard - Страница 88

The long-term physical assets included in PPE don’t last forever. With age and usage, every long-term physical asset is subject to depreciation, or a decrease in value. Different companies measure depreciation in different ways (some of which I discuss later in this section), but regardless of the manner in which a company measures depreciation, the total shows up on the balance sheet as a subtraction from the total value of PPE. It looks something like this:

A company may choose to leave out the gross PPE line because it doesn’t contribute anything to the value of the total assets (and because you can calculate it easily, given the other information listed).

What follows are two of the most common methods for calculating depreciation.