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.
Depreciation fund method or Sinking fund amortization fund method.
Insurance policy method.
Sum of the year’s digits method (SYD).
Double declining balance method.
The basis of use system.
You may also be interested in other articles from “accounting for depreciation” chapter:
- Definition and Explanation of Depreciation
- Causes of Depreciation
- Need for Depreciation
- Depreciation, Depletion and Amortization
- Difference Between Depreciation and Fluctuation
- Basic Factors of Determination of Depreciation
- Depreciation Methods / Methods for Providing Depreciation
- Fixed Installment Method / Straight Line Method / Original Cost Method
- Diminishing balance/written Down Value/Reducing Installment Method of Depreciation
- Annuity Method of Depreciation
- Depreciation Fund Method or Sinking Fund Method
- Insurance Policy Method of Depreciation
- Revaluation Method of Depreciation
- Sum of the Years’ Digits Method of Depreciation
- Double Declining Balance Method of Depreciation
- Depletion Method of Depreciation
- Basis of Use System of Depreciation
- Depreciation Of Various Assets
- Depreciation Accounting – General Questions and Answers
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