Impairment and Depreciation are two very important concepts in accounting. Both concepts apply to assets, especially fixed assets. And both refer to the drop… Read Article
Accumulated depreciation is the total or cumulative depreciation amount of an asset. That is to say; this accumulation is since its purchase by the… Read Article
As the name suggests, the sum of the year’s digits depreciation or SYD is a method to calculate depreciation. Since this method accelerates the… Read Article
MACRS, or the modified accelerated cost recovery system, is the system of calculating tax deductions on depreciation in the United States. Under this, the… Read Article
The double-declining depreciation method is an accelerated depreciation method where the depreciation expense decreases with the age of the asset. The depreciation charge under… Read Article
The straight-line depreciation method is the simplest method for calculating an asset’s loss of value or, in other words, depreciation over a period of… Read Article
The decrease in the value of an asset due to the normal wear and tear, time effect, obsolescence, etc., is called depreciation. Amortization is… Read Article
Depreciation is a very important and real operating expense. Although it is a non-cash expense and does not require any current cash outflow, nonetheless… Read Article