Investors can easily be bamboozled by accounting jargon such as depreciation and amortisation. Here Tim Bennett explains what these words mean and how to deal with them.
Пікірлер: 32
@shauna13064 жыл бұрын
Finally someone who explains it clearly.
@luisspencer65932 жыл бұрын
Bravo! I’ve seen 6 videos on this so far and yours takes the Charlie!
@kerriemariah3 жыл бұрын
this is presented in such an understandable way - thank you for doing this!
@lildesderman83412 жыл бұрын
Appreciate that Drake & Josh intro
@chrisschmidt55122 жыл бұрын
absolutely brilliant. So many concepts I didn't fully understand now made simple
@pastormarkhibbert20738 ай бұрын
This is a great video! It really helped me understand Amortization of a project
@daoudidris73469 жыл бұрын
Very well spoken and understandable. Thank you
@irfaana.b.67073 жыл бұрын
Ok so basically (do correct me if I'm wrong), depreciation is basically the cost of the asset divided by the number of years that the asset will last. So 1M dollars for an ice cream machine, directors decide that the machine can only maintain its quality for 10 years so they spread 1M over a span of 10 years: 1M /10years = $100k a year. Also. Directors could decide/estimate that the Icecream machine might be worth $200k at the end of 10Years, so they will only charge the profit and loss account (currently 100k Yearly) with the cost of using the asset in a year (in that 10yr period); so instead of 1M its 1M - 200K so 800K/10 years = 80k a year. profit and loss account is now 80k a year. ps. like ur top, sir.
@edwardsheefeni58484 жыл бұрын
Thank you very much. I was confused of these terms while preparing my business financial forecast. But I very clear about it now. Thank you very much.
@udaynataraaj23902 жыл бұрын
Excellent...with love respect from India.👍
@MickySupreme8 жыл бұрын
Nice shirt dude! + Great information! Thanks, you helped!
@diegocaicedo363 жыл бұрын
Broader explanation. It goes into some details and examples, so I think It is a relevant video, nonetheless, could limit the variety of concepts into a straight and brief definition. Good Work!
@phillipharrison74424 ай бұрын
love it! just wondering where the intial transaction of £1 million would appear? or would the asset be paid off annually over 10 years to match the amortisation schedule (presumably reinforced by a manufacturers guarantee that the machinery would be actually be usable for the full period of 10 years as in this example)?
@davidhelmer6393 Жыл бұрын
Great and informative video!
@11goto119 жыл бұрын
not fabulous at dinner parties?? Good sir, you have messed with the wrong pencil pusher
@sayitasis83269 жыл бұрын
sir, thanks for the video, however I would to like to point out is that you do not depreciate land
@milanpaudel96248 жыл бұрын
land generally gets appreciated, not depreciated.. but appreciation of land can't be regarded as profit
@andydidyouhear11 жыл бұрын
Hello Tim, this is a great video, as always. Have you considered making one on factoring?
@stanvincent43025 жыл бұрын
Thank you Sir.
@jimmyzhou402611 жыл бұрын
Great videos, very well explained in laymen's vocabulary. Can you please do an explanatory video on the black scholes options pricing formula? Thanks.
@Nauman_0007 жыл бұрын
Why we amortize intangible assets, Normally the value increases like , Goodwill, Patent etc. they increase over period of time.
@mjt_003 жыл бұрын
such a good video
@philippezoghzoghi6147 Жыл бұрын
Is amortization used for tax deduction?
@brandonlee90329 жыл бұрын
can i know why amortise goodwill if it does not depreciate?
@leesmith92992 жыл бұрын
took me about 4 rewinds to work out "you can kick". then a few more seconds to work out he means physical things. why not just speak plainly without viewers needing to decipher what it is you're saying.
@iansmiler3 жыл бұрын
Thank you :)
@AlwaysHopeful8711 жыл бұрын
Thanks.
@987asdqwe6 жыл бұрын
When i purchased any plant journal entry would be plant account debit to cash account credit. There is no profit and loss account hit. Now why there is a need of depreciation and giving one effec to balance sjeet and one in profit and loss.