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What is the best principal for charging depreciation of an asset?

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Question added by Husainee kotwal , ACCOUNTANT , ABDULMOHSIN ABDULAZIZ BABTAIN CO.WLL
Date Posted: 2016/08/12
Zahid Iqbal
by Zahid Iqbal , Senior Group Accountant , GSCS Group

Accounting principles suggest to charge Depreciation on the basis of useful life of an Asset considering also the residual value or until the Asset can generate the economic benefits for your company.

Husainee kotwal
by Husainee kotwal , ACCOUNTANT , ABDULMOHSIN ABDULAZIZ BABTAIN CO.WLL

According to the life of an asset we should charge depreciaton on written down value of asset it will reflects the residual value of  the said asset at the end of every year.

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