Depreciation: Difference between revisions
WikiSysopIG (talk | contribs) Created page with "'''Depreciation''' is the systematic allocation of the depreciable amount of a tangible long-term asset over its estimated useful life. It is an accounting method used to recognize the gradual consumption, wear and tear, obsolescence, or decline in the economic value of assets such as buildings, machinery, equipment, vehicles, and other Property, plant and equipment. Rather than representing the market value of an asset, depreciation allocates its cost as an expense..." |
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== Calculation == | == Calculation == | ||
The straight-line method, one of the most widely used depreciation methods, is calculated as: | The straight-line method, one of the most widely used depreciation methods, is calculated as: | ||
where: | where: | ||