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Methods of Depreciation

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 November 2009 Dear Friends we well know that there are differat methods of charging Depreciation butcan you pls Why are differant methods of charging depereciation?
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shakuntala chhangani

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shakuntala chhangani (Expert)
11 November 2009 Different assets have different characteristics. so u cannot depreciate all of them using same method of depreciation. normally tangible fixed assets are depreciated by using SLM or WDV method. if these are leased assets, it will be depreciated as per SLM method. Intangible assets are normally depreciated as per SLM or in the proportion of benefits. similarly, wasting assets are depreciated as per depletion method.
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