Depreciation measures the decline in the useful economic value of an asset due to use or obsolescence. It can be calculated using the straight line method, sum-of-digits method, double-declining method, unit-of-production method.*****ShaeBest
The depreciation rate for accounting may be different than that of taxation. The depreciation as per books of accounts may often be termed as book depreciation while that calculated under tax law is termed as tax depreciation.
The depreciation rate for accounting may be different than that of taxation. The depreciation as per books of accounts may often be termed as book depreciation while that calculated under tax law is termed as tax depreciation.
Tax department has developed theire own depreciation schedules for different assets class and use their own depreciations rather than using accounting depreciation and due to this accounting depreciation difference there is also difference in tax we pay and tax we calculate and called "Deffered Taxation"
What are the different approaches which can be applied in each condition?
Two approaches that are commonly discussed are; transaction approach and capital maintenance approach. In the transaction approach, the income is calculated by analyzing effects of revenue and expense transactions in a period.
A provision of depreciation account is different than other accounts because it collects all of the value of depreciation within the account. In the main asset account, depreciation is not credited because it is credited into this account.
different types of realist and non-realist approaches?
Cost of depreciation assets and accumulated depreciation is same as accumulated depreciaton calculates how much depreciation is charged till date while remaining is current book value of assets.
The depreciation on a used Mitsubishi car is different for every car. There is no given set limit on depreciation for a used Mitsubishi car. Dealers would know more.
every guy has a different approach
there are different approaches to the study of history; chronological, evolutionary, scientific as well as the interpretive approach.
What are non pay costs or Costs that occurs but you really don't pay them. The biggest Cost which a business don't pay but occurs is the Depreciation Expense. You don't pay for the Depreciation Expense. its just devaluation in the assets of a business. A business uses its assets and the assets value don't remains the same at the end of the year as it was in the beginning of the year. There are different methods used to calculate the Depreciation Expense which is another question.