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Verdiente Abschreibung

English translation: earned depreciation

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:verdiente Abschreibungen
English translation:earned depreciation
Entered by: Jan Liebelt
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07:23 May 28, 2003
German to English translations [PRO]
Bus/Financial - Accounting / Accounting
German term or phrase: Verdiente Abschreibung
Bit confused by this combination.

I know that "Abschreibung" normally refers to depreciation/amortization, but can this be "earned"?

Context:

Vorhaben sind nur förderfähig, wenn der Investitionsbetrag, bezogen auf ein Jahr, die in den letzten drei Jahren durchschnittlich verdienten Abschreibungen um mindestens 50% übersteigt.
Jan Liebelt
France
Local time: 15:43
earned depreciation/depreciation earned
Explanation:
Strictly speaking, of course, depreciation/amortisation is *always* earned, which is why it is reported as a deduction in the income statement.

However, this particular case is an element of German BWL that doesn't have an exact counterpart in Anglo-American financing theory, although it is based on the fundamental Marxian theory of capacity extension.

Basically, if a company uses the depreciation charges it has provided for to invest in new assets before the end of the useful lives of the original assets, it finances the new acquisition from its revenue, at least in part. The depreciation component here is known as "earned depreciation" or "depreciation earned", and is calculated as depreciation/amortisation for the year, minus any impairment losses on and other write-downs of non-current assets.

The terms and conditions of German public-sector grants and other subsidies frequently stipulate a minimum ratio of "verdiente Abschreibungen" (it normally appears in the plural) to aggregate capital expenditures.
Selected response from:

RobinB
Germany
Local time: 15:43
Grading comment
Thanks for your very learned and helpful answer!
4 KudoZ points were awarded for this answer

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Summary of answers provided
5earned depreciation/depreciation earnedRobinB
4accumulated
Asya Sokirko
4qualified deductions
Maureen Holm, J.D., LL.M.


  

Answers


40 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
qualified deductions


Explanation:
maybe

Maureen Holm, J.D., LL.M.
United States
Local time: 09:43
Native speaker of: Native in EnglishEnglish
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47 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
accumulated


Explanation:
When something is "verdient", it also means that it is something you are entitled to, i.e. it is "earned" in a larger sense. For example, there is an insurance term "verdiente Prämie" ("earned premium"). In this case the sentence refers to depreciation that you are legally entitled to claim. I would just call it accumulated.

Asya Sokirko
United States
Local time: 09:43
Works in field
Native speaker of: Native in RussianRussian, Native in EnglishEnglish
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1 hr   confidence: Answerer confidence 5/5
earned depreciation/depreciation earned


Explanation:
Strictly speaking, of course, depreciation/amortisation is *always* earned, which is why it is reported as a deduction in the income statement.

However, this particular case is an element of German BWL that doesn't have an exact counterpart in Anglo-American financing theory, although it is based on the fundamental Marxian theory of capacity extension.

Basically, if a company uses the depreciation charges it has provided for to invest in new assets before the end of the useful lives of the original assets, it finances the new acquisition from its revenue, at least in part. The depreciation component here is known as "earned depreciation" or "depreciation earned", and is calculated as depreciation/amortisation for the year, minus any impairment losses on and other write-downs of non-current assets.

The terms and conditions of German public-sector grants and other subsidies frequently stipulate a minimum ratio of "verdiente Abschreibungen" (it normally appears in the plural) to aggregate capital expenditures.

RobinB
Germany
Local time: 15:43
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 909
Grading comment
Thanks for your very learned and helpful answer!
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