Depreciation vs Amortization Explained Simply

[@BrianFeroldiYT]

FREE Accounting Infographic eBook: longtermmindset.co/fssebook

[@PascalH9191]

You are embarrassing all of those so called financial experts and financial gurus! Keep up the great work

[@BrianFeroldiYT]

Thanks so much!

[@user-bu1fw3ei3x]

Never stop uploading these videos, sir. God bless you, the parents that gave birth to you, your wife whom makes your home, and your kids who will be smart and be kind to teach others!

[@MarzioMassari]

I think the same, really

[@BrianFeroldiYT]

Wow, thank you

[@BrianFeroldiYT]

:)

[@vrafa1]

Quality of content is amazing! The video format is also great ❤ love the images supporting the content! I see improvements anytime you issued a new video! Keep up the great work.

[@BrianFeroldiYT]

Thank you 🙌

[@theanimator4436]

Thanks Brian. It is amazing how you are contributing to the community. Love your unique approach to investors online.

[@BrianFeroldiYT]

I appreciate that!

[@EmanueleScoccia-xl4kb]

Love it! Sadly, i suppose this kind of video make less visualizations, but their are truly remarkable and useful for the people that want to really learn

[@BrianFeroldiYT]

As long as the people who watch the video learn, I’m happy

[@hectorcortes1818]

very useful material! thanks! and so easy to understand... totally recommendable

[@BrianFeroldiYT]

Glad you think so!

[@Teja]

Recently found your channel through KZbin Shorts and my god what an absolute goldmine!!! I wanted to learn about stocks and how to read statements recently and lo and behold KZbin Gods have blessed me!!! Also checked out your book tooo keep up the fantastic work!!! I love your shorts too btw so compact and informative 😊

[@BrianFeroldiYT]

Thanks so much!!!

[@Nemi51500515]

3:21 You missed this as an opportunity to describe that the $1000 comes OFF the fixed tangible asset value on the balance sheet.

[@BrianFeroldiYT]

Hmmm.....yeah, that the balance sheet is carried at book value. Good point.

[@sitrakaforler8696]

Clear ! Precise !

[@BrianFeroldiYT]

Glad it helped!

[@OmegaRejectz]

1000th like. Thanks for the video!

[@BrianFeroldiYT]

You rock!

[@一晴方觉夏深-c6k]

生动形象，非常棒的教学视频！

[@BrianFeroldiYT]

:)

[@Somaaliman]

This is whole college semester course in 10 min ❤. Thank you

[@BrianFeroldiYT]

If I could’ve made it shorter, I would have!

[@robertmariano]

After watching this video, I realized that M.C. Hammer wrote a song about amortization, U Can't Touch This

[@BrianFeroldiYT]

Lol

[@gam3rman85]

3:13 my OCD is killing me the dots on the graph aren't lined up perfectly 😬

[@BrianFeroldiYT]

Maybe we need to hire you as video editor

[@exuconton]

So, you write off the book value of brand name linearly over 15 years. What is the book value of Amazon or Tesla then?

[@whitevanman8703]

So what is the difference between amortization for FORD and MFST?

[@BrianFeroldiYT]

You’d have to dig into their SEC filings to find that out

[@stefanogattoCH]

Let's take the Coffee Shop example. It's a tangible fixed asset, right? So are they going to depreciate it? At what percentage per year? What about the land component of it? Can we depreciate it as well, or not at all? Are there differences between countries (I am based in Switzerland)?

[@BrianFeroldiYT]

You are correct that there are details far beyond what I covered in this video. This is just just a general overview. There are actually multiple methods for depreciation.

[@christen1075]

What I don't get is the numbers don't appear to add up precisely. And isn't that what double entry bookkeeping/accounting is suppose to project? I mean, balance to the nearest nickel? You buy new PPE at $560,731. You depreciate at $319, 394. Difference is $241,337. Add that to the ending Balance Sheet of 31 Dec 22 of $1,951,147 and you get $2,192,484, not $2,170,038. Trying NOT to be the star pupil at the Beneke Fabricators IRS skool of "you got some 'splainin' to do". I took basic accounting in 1969 before calculators (still have my slide rule tho)

[@T-1000v3ai]

how about covering a stock

[@BrianFeroldiYT]

I’m not sure what you mean. I gave an example in the video.

[@kebugcheck]

Why do this instead of just marking the purchase of coffee maker as expense and getting full benefit that very year.

[@BrianFeroldiYT]

What you’re describing is Cash accounting. This is accrual accounting. Imagine that instead of a coffee maker it’s a building that last 30 years. Should you expense it on your one or spread it out over the 30 years?