In this article we will discuss about:- 1. Meaning of Providing Depreciation 2. Methods of Providing Depreciation 3. Importance of Sound Depreciation Policy 4. Distinction between Depreciation and Obsolescence. Meaning of Providing Depreciation: CIMA defines Depreciation as "the measure of wearing out, consumption or other loss of value of a fixed asset whether arising from use, effluxion of time or [...]
In this article we will discuss about the impact of depreciation on financial management. Depreciation is the measure of wearing out, consumption or other loss of value of a fixed asset. It may arise from use of asset, affluxion of time, obsolescence through technology and market changes etc. The cost of a product should consist of not only normal expenses [...]
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 [...]