Tag Archives | Depreciation

How to Calculate Depreciation of an Asset?

The following methods may be employed for calculating depreciation of an asset: 1. Straight Line Method 2. Reducing Balance Methods 3. Production Based Methods 4. Repair Provision Method 5. Annuity Method 6. Sinking Fund Method 7. Endowment (Insurance) Policy Method 8. Revaluation Method 9. Sum of the Digits Method. 1. Straight Line Method: This method provides for depreciation by means [...]

By |2017-02-06T21:13:24+05:30February 6, 2017|Assets|Comments Off on How to Calculate Depreciation of an Asset?
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Depreciation: Introduction, Causes and other Details (1239 Words)

Depreciation: Introduction, Causes and other Details! Introduction: The term ‘depreciation’ is derived from the Latin words do (down) and premium (price). In everyday life, the term ‘depreciation’ denotes the decrease in the value of any asset. Image Courtesy: wmarkthompson.com/wp-content/uploads/2013/01/servingleader.jpg It is applicable only to those tangible assets that are used by the business. Some definitions of depreciation are [...]

By |2014-01-27T16:46:33+05:30October 18, 2013|Management|Comments Off on Depreciation: Introduction, Causes and other Details (1239 Words)
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