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

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 are recorded the particulars relating [...]

By |2016-06-18T06:59:43+00:00June 18, 2016|Depreciation|Comments Off on Plant and Machinery Register (With Illustration) | Depreciation
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