Forms of Depreciation

Depreciation has three forms: the first and most common is time based depreciation, the second is a utilization form which is most commonly found in large engineered equipment companies, and the third is tax based depreciation.

Accelerated Depreciation – An Explanation

Accelerated Depreciation

When it comes to depreciation, no two businesses are alike. Unlike traditional straight line depreciation where the asset value is costed out to depreciation expense in equal increments over a given life expectancy, accelerated depreciation expenses the cost at higher values during the earlier accounting periods and at a lower amount towards the last half of the asset’s life expectancy.

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