depreciation reserve
The total depreciation of an asset. It is calculated by subtracting the asset's current value from its original value, or by multiplying the annual depreciation rate by the number of years the asset was held.
Definition from Nolo’s Plain-English Law Dictionary
A business fund in which the probable replacement cost of equipment is accumulated each year over the life of the asset, so it can be replaced readily when it becomes obsolete and totally depreciated.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:14 pm
