Capital Consumption Adjustment
From Open Risk Manual
Definition
Capital Consumption Adjustment. Private capital consumption allowances less private consumption of fixed capital.
This adjustment is used to convert income and depreciation measures from the historical-cost accounting used by firms when filing their income tax returns to the current-replacement cost basis with consistent service lives and empirically based depreciation schedules.[1]
References
- ↑ Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009
