Accelerated Depreciation

The term «accelerated depreciation» is typically translated, even by major accounting firms, as «ускоренная амортизация» (uskorennaya amortizatsiya). Yet, such literal translation can be misleading.

Accelerated depreciation, as it is usually understood, is a method of depreciation that, opposite to the straight-line method, depreciates an asset in such a way that the amount of depreciation taken each year is higher during the earlier years of an asset’s life. This includes, for instance, the declining balance and the sum-of-the-years’-digits methods.

From Russian perspective the term «ускоренная амортизация» is used when, for tax purposes, the estimated life of an asset is deemed to be shorter than usual, regardless whether the depreciation method is straight-line or accelerated (art. 259.3 of the Tax Code).

Though there are similarities between «accelerated depreciation» and «ускоренная амортизация», they mean different things.