Definition of DEPRECIATION RESERVE in Black's Law Dictionary 4th Edition – Legal dictionary – Glossary of legal terms.
Definition of DEPRECIATION RESERVE
An account kept on the books, as of a public utility, to offset the depreciation of the property due to time and use. People ex rel. Adirondack Power & Light Corporation v. Public Service Commission, 193 N.Y.S. 186, 191, 200 App.Div. 268. It does not represent the actual depreciation of its properties which is to be deducted from the reproduction cost new to ascertain the present value for rate purposes; but only what observation and experience suggest as likely to happen, with a margin over. Southern Bell Telephone & Telegraph Co. v. Railroad Commission of South Carolina, D.C.S.C., 5 F.2d 77, 96.
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That's the definition of DEPRECIATION RESERVE in Black's Law Dictionary 4th Edition – Legal dictionary – Glossary of legal terms. Courtesy of Cekhukum.com.
