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 of financial accounting it to [...]

By |2016-06-28T09:28:14+00:00June 28, 2016|Depreciation|Comments Off on Depreciation: Concept, Definition and Causes

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 [...]

By |2016-06-28T09:28:14+00:00June 28, 2016|Depreciation|Comments Off on Choice of a Depreciation Method

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. Methods of Providing Depreciation: Depreciation [...]

By |2016-06-18T06:59:43+00:00June 18, 2016|Depreciation|Comments Off on Top 6 Methods for Providing Depreciation | Cost Accounting
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