Capital Consumption Adjustment
From Open Risk Manual
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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
