Archive | Depreciation

Depreciation: Concept, Definition and Causes

After reading this article you will learn about:- 1. Concept of Depreciation 2. Definition of Depreciation 3. Characteristics 4. Causes 5. Need 6. Basic. Contents: Concept of Depreciation Definition of Depreciation Characteristics of Depreciation Causes of Depreciation Need For Providing Depreciation Basic Factors in Estimating Depreciation 1. Concept of Depreciation: One of the basic objectives […]

Choice of a Depreciation Method

This article throws light upon the top six factors influencing choice of a depreciation method. The factors are: 1. Nature of Assets 2. Tax Considerations 3. Price Fluctuations 4. Accounting Conventions 5. Obsolescence 6. Management Policy. Factor # 1. Nature of Assets: The nature of the asset is of primary consideration in selecting the depreciation […]

Depreciation: Meaning, Reasons and Rate | Cost Accounting

In this article we will discuss about Depreciation of Assets:- 1. Meaning of Depreciation 2. Factors for Rate of Depreciation of Plant and Machinery 3. Reasons 4. Rates 5. Life Expired Assets 6. Replacement Value of Assets. Contents: Meaning of Depreciation Factors for Rate of Depreciation of Plant and Machinery Reasons for Charging Depreciation Rates […]

Depreciation: Meaning, Reasons and Rate | Cost Accounting

In this article we will discuss about Depreciation of Assets:- 1. Meaning of Depreciation 2. Factors for Rate of Depreciation of Plant and Machinery 3. Reasons 4. Rates 5. Life Expired Assets 6. Replacement Value of Assets. Contents: Meaning of Depreciation Factors for Rate of Depreciation of Plant and Machinery Reasons for Charging Depreciation Rates […]

Replacement Cost Basis of Depreciation | Cost Accounting

In this article we will discuss about the arguments for and against replacement cost basis of depreciation. Arguments for Replacement Cost Basis: Accountants who favour charging of depreciation on replacement cost basis give the following arguments: 1. In order to maintain the capital assets properly, it is desirable that depreciation should be charged on replacement […]

Top 6 Methods for Providing Depreciation | Cost Accounting

The following points highlight the top six methods of providing depreciation. The methods are: 1. Depreciation Based on Time Factor 2. Depreciation Based on Usage 3. Depreciation Based on Both Usage and Time Factors Joint Rate Method 4. Depreciation Based on Maintenance Factor 5. Considering the Revenue Earning Factor of the Asset 6. Revaluation Method. […]

Plant and Machinery Register (With Illustration) | Depreciation

In this article we will discuss about the plant and machinery register. Concerns having a large number of machines usually maintain a Plant and Machinery Register. The maintenance of such a register facilitates the calculation of annual charge of depreciation in respect of each machine. Each machine and plant is allocated a separate folio wherein […]

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