Methods of Depreciation

There are many methods of depreciation. The method of depreciation used should most closely match the expected usage of the asset. Common methods include straight line, accelerated, sum of the years digits, double accelerated and utilization rates.

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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