Method of Depreciation
Methods of Depreciation contains various methods that calculate depreciation for expense period such as Straight-line depreciation,The units-of-production depreciation method,The sum-of-the-years digits method,The double-declining balance.These are all the methods of depreciation.
Sum of the Years’ Digits Method of Depreciation: Learning Objectives: Explain the sum of the years’ digits method of depreciation. Definition and Explanation: Sum of the Years’ Digits Method an accelerated method of depreciation which is also based on the assumption that the loss
Revaluation Method of Depreciation: Learning Objectives: Define and explain the revaluation method of depreciation. When and where this method is used? As the name implies under revaluation method, the assets are valued at the end of each period so that the difference between the
Insurance Policy Method of Depreciation: Learning Objectives: Define and explain the insurance policy method of depreciation. Definition and Explanation: Insurance policy method is a slight modification of the depreciation fund method or sinking fund method. Under this method the amount represented by the depreciation