Depreciation Methods:
Learning Objectives:
-
What are the various methods
for depreciation?
Fixed assets differ from each
other in their nature so widely that the same depreciation methods
cannot be applied to each. The following methods have therefore been evolved
for depreciating various assets:
-
Fixed installment or
Straight line or Original cost method.
-
Diminishing Balance Method
or Written down value method or Reducing Installment method.
-
Annuity Method.
-
Depreciation fund method
or Sinking fund amortization fund method.
-
Insurance policy method.
-
Revaluation method.
-
Sum of the year's digits
method (SYD).
-
Double declining balance
method.
-
Depletion method.
-
The basis of use system.
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