kulumisprotsent

Kulumisprotsent, often translated as depreciation percentage or rate, is a concept used in accounting and finance to express the annual rate at which the value of an asset decreases over time due to wear and tear, obsolescence, or usage. It is a key component in calculating depreciation expense, which is an accounting charge that represents the reduction in an asset's value over its useful life.

The kulumisprotsent is typically determined based on the asset's estimated useful life and its salvage value (the expected residual value of an asset at the end of its useful life). Different depreciation methods exist, such as the straight-line method, declining balance method, and sum-of-the-years'-digits method, and each method applies the kulumisprotsent differently to arrive at the annual depreciation charge. For instance, in the straight-line method, a constant kulumisprotsent is applied each year.

This percentage is crucial for businesses as it impacts the reported profitability of a company. Higher depreciation expenses, derived from a higher kulumisprotsent, will reduce net income. It also affects the book value of assets on the balance sheet. Tax regulations often influence the acceptable kulumisprotsent and depreciation methods that can be used for tax purposes, which may differ from accounting depreciation.