Depreciation

What is depreciation?

What is Depreciation

Depreciation is the systematic reduction in recorded (or book) value of property plant and equipment assets.

This reduction in value of the asset occurs because of wear and tear, obsolescence and age.

Accountants use either the straight line, units of use and reducing balance (or diminishing balance) methods so as to calculate depreciation.

Now access our low cost business tutorials to learn more about how depreciation is calculated.

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Jan'18

What is Depreciation?

What is Depreciation? Accounting student often ask, what is depreciation? Depreciation is the systematic reduction in recorded value of Property Plant and Equipment assets due to wear and tear, obsolescence and age. In choosing the depreciation method, the entity needs to consider; The depreciable amount (or base) ( no GST), The …

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