Difference between revisions of "Capital Consumption Adjustment"
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== Definition == | == Definition == | ||
| − | '''Capital Consumption Adjustment'''. Private capital consumption allowances less private consumption of fixed capital | + | '''Capital Consumption Adjustment'''. Private capital consumption allowances less private consumption of fixed capital. |
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| + | 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.<ref>Concepts and Methods of the US Input-Output Accounts. K.J.Horowitz, M.A.Planting, 2009</ref> | ||
== References == | == References == | ||
Latest revision as of 23:13, 13 November 2023
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
