on 08-04-2011 10:11 AM
Hi,
How many levels are there in depreciation area?
Thanks
Hi,
Ordinary depreciation: This is the planned reduction in asset value due to normal
wear and tear.
Special depreciation: This represents a purely tax-based type of depreciation for
wear and tear. This form of depreciation usually allows for depreciating a percentage
of the asset value, and this percentage may be staggered within a tax concession
period, without taking the actual wear and tear on the asset into consideration.
Unplanned depreciation: This is concerned with unusual circumstances, such as
damage to the asset, that lead to a permanent reduction in its value.
Unit-of-production depreciation: This allows you to take fluctuations in activity
into account for the depreciation calculation. It makes the amount of depreciation
dependent upon seasonal usage of the asset (for example, number of miles traveled
or units produced)
Regards
udayakumar.k
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