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 method. It will be seen [...]