D&A
Business & Finance abbreviation · Accounting
| Stands for | Depreciation and amortization |
|---|---|
| Categories | Business & Finance |
D&A stands for Depreciation and amortization, an accounting abbreviation.
Non-cash expenses that spread the cost of long-lived assets over their useful lives: depreciation for tangible assets such as machinery and buildings, amortization for intangible assets such as software, patents and acquired customer lists. D&A reduces reported profit but not cash.
Example: D&A of $85 million is added back in the cash flow statement because no cash left the business.
Usage notes
Adding D&A back to EBIT gives EBITDA. Methods include straight-line, declining balance and units of production. Tax depreciation, such as MACRS in the US, often differs from book depreciation, creating deferred taxes. Goodwill is not amortized under IFRS or by US public companies, but it is tested for impairment.
Related abbreviations
More accounting abbreviations
- COGS – Cost of goods sold
- COS – Cost of sales
- COSO – Committee of Sponsoring Organizations of the Treadway Commission
- Cr – Credit
- CVP – Cost-volume-profit analysis
- CY – Calendar year
- Dr – Debit
- DTA – Deferred tax asset
- DTL – Deferred tax liability
- EBIT – Earnings before interest and taxes
- EBITDA – Earnings before interest, taxes, depreciation and amortization
- EBITDAR – Earnings before interest, taxes, depreciation, amortization and rent…