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متابعة

Why is depreciation recorded as an expenses also in years after purchase?

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تم إضافة السؤال من قبل Moses Ajayi Murorun , Production Executives , Various Organizations
تاريخ النشر: 2013/09/05
taha amer
من قبل taha amer , Finance Manager , Arabia ‎Holding

Apply depreciation on fixed assets, because the acquisition of fixed assets is capital cost benefit for several years, so the cost should be distributed on the origin of these years in a correct manner.The concept of depreciation:Is a regular distribution of the cost of fixed asset stainless depreciation expense over the useful life of the asset, whose assets recoverable depreciation of buildings and all kinds of machinery and equipment as well as furniture and fixtures and vehicles, while not considered land originally capable of being depreciated because the useful life is unlimited.Thus, each cycle bearing a share of the financial cost of this asset which we turn the capital cost of the asset to parts of the costs of Aiardih and every part is called depreciation and carries on a financial cycle.

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