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متابعة

Which depreciation method is good, reduced or straight line?

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تم إضافة السؤال من قبل Chandrasekhara Sankole , Finance Manager , Blue Camel Group
تاريخ النشر: 2017/01/17
Ahmed mohsen
من قبل Ahmed mohsen , Senior Accountant , Main Poly Clinic

The straight-line (SL) depreciation method is one of the easiest accounting methods of computing the depreciation expense of about any depreciable assets for a period. It spreads out evenly all cost associated with the purchase (initial cost) over useful life of the property. The simplicity of the straight-line depreciation method makes it understandable, reasonable, widely usable and acceptable. The SL deprecation accounting method is used commonly among different size and form of organizations especially smaller ones.

Mansoor Shahid
من قبل Mansoor Shahid , Auditor , Middle East Auditing

1st of all it depends on the utilization of your Asset. If it's benefit is constant then straight line otherwise reducing balance method. However, a lot of companies are using reducing balance method because it gives reduced dep. charge as well as asset is not to be removed for long time as it's value doesn't goes null.

مستخدم محذوف‎
من قبل مستخدم محذوف‎

Depending on  the type of The assets and to the management policy towards the Tax regulatory . 

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